Home' Trinidad and Tobago Guardian : October 11th 2015 Contents The stock market closed out its
best week this year with a
modest gain on Friday, helped
by airlines and industrial com-
Investors now turn their focus to corporate
earnings, which will start to pick up next week.
The Dow Jones industrial average rose 33.74
points, or 0.2 per cent, to 17,084.49. The Stan-
dard & Poor s 500 index rose 1.46 points, or
0.1 per cent, to 2,014.89 and the Nasdaq com-
posite rose 19.68 points, or 0.4 per cent, to
The S&P 500 ended the week up 3.3 per
cent, its best week since mid-December. Global
markets also had a strong week, with markets
in Germany and France rising more than five
In Asia, markets in Japan, China and Hong
Kong are up roughly four per cent each.
Most of the gains this week came imme-
diately following the release of last week s dis-
appointing jobs report, which sent a signal to
investors that the Federal Reserve would hold
pat on raising interest rates at least for several
more months. That signal was reinforced
Thursday, when the minutes from the Sep-
tember Fed meeting showed policymakers are
too concerned about low inflation and the
slowdown in China to raise interest rates.
"In short, we found little to change our
view that the first Fed hike will not occur in
2015 (and the) market has reached the same
conclusion," wrote Ajay Rajadhyaksha, head
of fixed-income at Barclays, in a report.
One sector that did push higher was airlines.
The companies said they flew nearly full flights
last month, an important profit driver for the
industry. United Continental flew flights on
average 82.9 per cent full; while American
Airlines reported its flights were 82.7 per cent
United Continental rose 6.6 per cent, Amer-
ican rose 6.7 per cent, JetBlue Airways and
Southwest Airlines added 3 per cent each.
One industrial company that did not do
well was Alcoa, the aluminum company, which
fell 75 cents, or seven per cent, to US$10.26.
The company reported a steep drop in profits
for its third quarter, citing lower aluminum
prices and a strong US dollar.
Investors are now positioning themselves
for corporate earnings, which pick up steam
next week with most of the nation s largest
banks report their results, as well as big com-
panies like Intel, Netflix, UnitedHealth and
General Electric. Earnings are expected to be
down roughly 5.5 per cent from a year ago,
according to FactSet, mostly because of a sharp
drop in commodity prices.
"Earnings are going to dominate the next
few weeks. Once we get guidance from Cor-
porate America, investors will be reasonably
more confident about getting back into the
market," said Bob Doll, chief equity strategist
at Nuveen Asset Management.
The price of US oil edged higher Friday.
Benchmark crude oil rose 20 cents to close at
US$49.63 a barrel in New York. Brent Crude,
which is used to price international oils, slipped
40 cents to US$52.65 a barrel in London.
In other futures trading on the New York
Mercantile Exchange, wholesale gasoline rose
0.9 cents to close at US$1.417 a gallon. Heating
oil fell 1.1 cents to close at US$1.591 a gallon
and natural gas rose 0.4 cents to close at
US$2.502 per 1,000 cubic feet.
US government bond prices rose slightly.
The yield on the 10-year Treasury note fell to
2.09 per cent. The euro rose to US$1.1363
while the dollar rose to 120.24 yen.
Metals prices rose. Gold climbed US$11.60
to US$1,155.90 an ounce, silver gained five
cents to US$15.82 an ounce and copper climbed
seven cents to US$2.41 a pound. AP
OCTOBER 11 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
US stocks close
out best week
of the year with
a small gain
How the Dow Jones industrial
average fared on Friday
The stock market closed out its best week
this year with a modest gain on Friday, helped
by airlines and industrial companies. Investors
now turn their focus to corporate earnings,
which will start to pick up next week.
The Dow Jones industrial average rose
33.74 points, or 0.2 per cent, to close at
The Standard & Poor's 500 index added
1.46 points, or 0.1 per cent, to 2,014.89.
The Nasdaq composite rose 19.68 points, or
0.4 per cent, to 4,830.47.
For the week:
The Dow was up 612.12 points, or 3.7 per
The S&P 500 index was up 63.53 points, or
3.3 per cent.
The Nasdaq was up 122.70 points, or 2.6
For the year:
The Dow is down 738.58 points, or 4.1 per
The S&P 500 index is down 44.01 points, or
2.1 per cent.
The Nasdaq is up 94.41 points, or 2 per
In this August 24, 2015 file photo, trader John Santiago, centre, works on the floor of the New
York Stock Exchange, in New York. As stocks swung wildly last month, average investors
pulled a net US$9.8 billion out of mutual funds targeting US stocks and put US$9 billion in the
money market during the week ending August 26, according to the Investment Company
Institute, a trade group. The next week, the market rebounded and they reversed course,
sticking US$1.8 billion into US funds. (AP)
People walk past an
indicator of a securities
firm in Tokyo, Thursday,
September 10, 2015.
Asian stock markets
were weaker Thursday
after Wall Street fell
following a strong US
job ads report that
added to the case for
the Fed's first rate hike
in years. Japan's Nikkei
225 sagged 2.9 per cent
to 18,234.67 one day
after surging 7.7 per
cent in its biggest gain
since October 2008. AP
Asian stock markets rose Friday
on expectations the Federal Reserve
will keep interest rates at a record
low for several more months. Energy
stocks advanced with the price of
KEEPING SCORE: Japan s Nikkei
225 index added 0.8 per cent to
18,282.85 and Hong Kong s Hang
Seng jumped 1.9 per cent to
South Korea s Kospi rose 0.7 per
cent to 2,019.53 and Australia s
S&P/ASX 200 was up 0.9 per cent
at 5,251.90. China s Shanghai Com-
posite Index gained 0.6 per cent to
3,160.67. Southeast Asian stock
markets also rose.
FED FACTOR: Minutes from the
Federal Reserve s September policy
meeting showed officials expressing
confidence that the US economy
was improving. But policymakers
worried that inflation remains
abnormally low, noting the recent
drop in commodity prices. That was
the main reason the Fed did not
raise interest rates in September.
Markets now think the Fed won t
hike at its meetings in October or
December, particularly after weak
monthly employment numbers.
CURRENCIES: The US dollar rose
to 119.97 yen from 119.90 in the
previous session. The euro slipped
to US$1.1279 from US$1.1291.
Asian stocks gain on hopes Fed won't hike rates this year
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