Home' Trinidad and Tobago Guardian : August 30th 2015 Contents AUGUST 30 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOOCKS | SBG9
US stocks ended the day little
changed Friday, letting
investors breathe a little eas-
ier after a week where both
the highs and lows were
The market gave investors a hard jolt the
first two days of trading this week on concerns
about the health of China s economy. The
rebound Wednesday and Thursday was just
as sharp as investors decided to scoop up beat-
The relatively stable Friday trading offered
the owners of bruised portfolios some hope
that the market was settling down.
"People are taking a little bit of a pause,"
said Paul Springmeyer, senior portfolio manager
at the Private Client Reserve at US Bank.
"We re finally winding down here where maybe
we re seeing more rational behavior."
The Dow Jones industrial average fell 11.76
points, or 0.1 per cent, to 16,643.01 on Fri-
The Standard & Poor s 500 index rose 1.21
points, or 0.1 per cent, to 1,988.87. The Nasdaq
composite gained 15.62 points, or 0.3 per cent,
US oil prices moved sharply higher for a
second day, boosting energy stocks.
Bond prices were little changed from Thurs-
day, keeping the yield on the 10-year bench-
mark Treasury note at 2.18 per cent.
The S&P 500 wound up the week 1.1 per
cent higher than the previous Friday, but stocks
are still on course for their worst monthly
performance in more than three years. The
S&P 500 is down 5.5 per cent in August, and
the Dow is down 5.9 per cent.
Markets have been volatile since China
decided to weaken its currency earlier this
month. Investors interpreted that move as an
attempt to bolster a sagging economy.
Traders are also jittery about the outlook
for interest rates. The Federal Reserve has sig-
naled it could raise its key interest rate for the
first time in nearly a decade later this year.
The recent market turmoil has thrown
expectations for a rate increase next month
into doubt, with most economists now saying
it s off the table for now.
Federal Reserve Vice Chairman Stanley Fis-
cher said Friday that before the recent tur-
bulence in financial markets, there was a "pret-
ty strong case" for starting to raise rates in
September. But he added that the Fed is watch-
ing how events unfold.
The stock market got a boost on Friday as
the price of oil continued to rebound from its
lowest level in more than six years. Oil gained
6.2 per cent on reports of escalating tensions
in Yemen. Low oil prices had raised worries
about their impact on the energy sector and
the health of the global economy.
Sector view: Five of the 10 sectors in the
S&P 500 rose, led by gains for energy stocks.
The industry group climbed 2.1 per cent as
the price of oil jumped for a second day.
ICAHN effect: Freeport-McMoRan rose
31 cents, or 3.0 per cent, to US$10.50 on news
that activist investor Carl Icahn took an 8.5
per cent stake in the mining company. The
stock had already surged Thursday when the
company announced cost cuts because of
declining copper prices.
Strong quarter: Big Lots surged 15.7 per
cent after the discount retailer reported bet-
ter-than-expected second-quarter earnings.
It also boosted its full-year outlook. The stock
rose US$6.58 to US$48.58.
All about consumers: Investors weighed
mixed snapshots of how consumers are faring.
The Commerce Department said consumers
increased their spending 0.3 per cent in July,
as wages and salaries made their biggest jump
in eight months. Separately, the University of
Michigan s latest consumer sentiment index
fell to 91.9 this month from 93.1 in July. Even
so, the survey also found that Americans
remain confident about the US economy and
their personal finances.
European markets: Germany s DAX fell
0.2 per cent, while France s CAC-40 rose 0.4
per cent. Britain s FTSE 100 gained 0.9 per
Bonds and currencies: US government
bonds were little changed from Thursday,
keeping the yield on the benchmark 10-year
Treasury note at 2.18 per cent on Thursday.
The dollar rose to 121.41 yen from 121.12 in
late trading Thursday. The euro fell to US$1.1188
Energy: The price of US oil rose sharply
for a second day on Friday, as crude continued
to rebound from its lowest price in more than
six years. Oil gained on reports of escalating
tensions in Yemen. US crude jumped US$2.66
to close at US$45.22 a barrel in New York. Oil
soared to its biggest one-day gain since March,
2009 on Thursday after a report showed that
the US economy grew more strongly than pre-
viously estimated in the second quarter.
Brent crude, a benchmark for international
oils used by many US refineries, rose US$2.49
to close at US$50.05 a barrel in London
Metals: Gold rose US$11.40 to US$1,134
an ounce. Silver climbed 11.8 cents to US$14.54
an ounce. Copper climbed 1.3 cents to US$2.25
Other futures: In other futures trading on
--- Wholesale gasoline rose 6.8 cents to close
at US$1.397 a gallon.
--- Heating oil gained 8 cents to close at
US$1.576 a gallon.
--- Natural gas fell 5.5 cents to close at
US$2.638 per 1,000 cubic feet. AP
Asian stocks rose Thursday after Wall Street soared
overnight, breaking a six-day string of losses. The
recovery brought a measure of relief to many investors,
although experts warned that more volatility could
The Shanghai Composite Index, whose sharp drop
Monday triggered a global sell-off, rose 2.2 per cent
to 2,992.99 points, rebounding from several days
declines. Tokyo s Nikkei 225 was up 2 per cent at
18,753 and Seoul s Kospi gained 1.1 per cent to 1,915.70.
The gains came after Wall Street rocketed up
overnight. The Dow Jones industrial average soaring
more than 600 points, or 4 per cent. That was its
third-biggest point gain of all time and its largest
since Oct. 28, 2008.
Hong Kong s Hang Seng advanced 2.3 per cent to
21,573.56 and Sydney s S&P ASX 200 gained 1.6 per
cent to 5,254.00. Benchmarks in Taiwan, Singapore,
Bangkok and Jakarta also rose.
Panicked selling over the past week was triggered
by declines in China, but analysts said it had no
basis in economic developments.
The Shanghai index has lost more than 40 per
cent of its value since soaring to a peak June 12 and
then plunged despite a multibillion-dollar government
Analysts said there are probably more roller-coaster
days ahead because of worries about China and a
possible Fed rate increase.
The slide in the Dow over the past week wiped
out some US$2 trillion in stock value in the US.
close flat after
a volatile week
...Asian stocks rise
How the Dow Jones industrial
average fared on Friday
For the day:
The Dow fell 11.76 points, or 0.1 per cent,
The Standard & Poor's 500 index rose 1.21
points, or 0.1 per cent, to 1,988.87.
The Nasdaq composite added 15.62
points, or 0.3 per cent, to 4,828.32.
For the week:
The Dow is up 183.26 points, or 1.1 per
The S&P 500 index is up 17.98 points, or
0.9 per cent.
The Nasdaq is up 122.29 points, or 2.6 per
For the year:
The Dow is down 1,180.06 points, or 6.6
The S&P 500 index is down 70.03 points,
or 3.4 per cent.
The Nasdaq is up 92.27 points, or 2 per
Trader Gregory Rowe, left, talks to specialist Neil Gallagher as they work on the floor of the
New York Stock Exchange, Friday, August 28, 2015 near the end of a volatile week. AP
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