Home' Trinidad and Tobago Guardian : October 18th 2015 Contents SBG12 STOCKS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 18 • 2015
US stocks closed modestly
higher Friday, giving the mar-
ket its third straight week of
Consumer staples and healthcare stocks
were among the biggest risers as investors
assessed the latest company earnings and eco-
After several weeks speculating about the
implications of a slowdown in China and the
timing of an interest rate increase by the Federal
Reserve, traders are squarely tuned into com-
pany earnings as they hunt for insight into
how the global economy is doing.
"That s what the market is focused on," said
Quincy Krosby, a market strategist at Prudential
Financial. "Are we seeing a pickup in demand
overseas and in the United States, and if so,
which sectors? That s what this is about."
General Electric rose three per cent, the
most in the Dow Jones industrial average, after
the industrial conglomerate reported earnings
that beat analysts forecasts.
The Dow rose 74.22 points, or 0.4 per cent,
to 17,215.97. The Standard & Poor s 500 index
gained 9.25 points, or 0.5 per cent, to 2,033.11.
The Nasdaq composite added 16.59 points, or
0.3 per cent, to 4,886.69.
The tech-heavy Nasdaq is up 3.2 per cent
this year. The Dow and S&P 500 are still neg-
ative. The Dow is down 3.4 per cent, while
the S&P 500 is off 1.3 per cent.
The three major stock indexes began the
day slightly higher, then wavered after midday.
The indexes slipped into the red at times before
drifting back into positive territory.
Investors appeared to brush off some dis-
couraging economic data, including a Federal
Reserve report indicating that US manufac-
turing production fell for the second straight
month in September. A separate Labor Depart-
ment report showed that employers advertised
fewer job openings in August and kept hiring
flat. The job market has weakened the past
two months, reflecting slower global economic
All told, nine of the 10 sectors in the S&P
500 rose. Healthcare and consumer staples
stocks each gained about one per cent. The
industrials sector declined 0.2 per cent.
General Electric reported a decline in third-
quarter profit, but strong performances from
its core units helped the company top Wall
Street expectations. GE rose 95 cents, or 3.4
per cent, to US$28.98.
Mattel climbed six per cent after analysts
at Oppenheimer published a research note
highlighting the toymaker s core brands as a
bright spot. The report came a day after Mattel
reported disappointing third-quarter results.
Mattel gained US$1.36 to US$23.89.
Traders hammered Quanta Services after
the contracting services company lowered its
third-quarter profit and revenue outlook, citing
project delays and a tough market. The stock
plunged 28.5 per cent, losing US$7.47 to
Third-quarter earnings are forecast to con-
tract overall as falling energy prices and weak
global demand start to eat into profits.
Among companies in the S&P 500 that have
already reported third-quarter results, earnings
declined 5.1 per cent from a year ago, the first
drop in earnings growth since the July-Sep-
tember period in 2009, according to S&P Cap-
"When all is said and done we ll probably
be looking at earnings that are flattish for the
quarter," said David Lefkowitz, an executive
director and equity strategist at UBS. "But
excluding the energy sector, we re looking for
six per cent growth, which is consistent with
what we saw earlier this year."
The earnings season hits a peak next week
with scores of major companies scheduled to
report results including Morgan Stanley, Boeing,
General Motors, McDonald s and Microsoft.
In Europe, the FTSE 100 index of leading
British shares was up 0.6 per cent, while Ger-
many s DAX rose 0.4 per cent. France s CAC
40 gained 0.6 per cent. In Asia, South Korea s
Kospi inched down 0.1 per cent, while Hong
Kong s Hang Seng rose 0.8 per cent. The
Shanghai Composite in mainland China was
up 1.6 per cent. Japan s benchmark Nikkei 225
added 1.1 per cent, aided by expectations that
the country s central bank will come up with
more stimulus measures this month or next.
In energy futures trading, Benchmark U.S.
crude added 88 cents to close at US$47.26 in
New York. Brent crude, used to price inter-
national oils, rose 73 cents to close at US$50.46
a barrel in London.
Wholesale gasoline rose 2.1 cents to close
at US$1.328 a gallon, while heating oil rose 1
cent to close at US$1.497 a gallon. Natural gas
fell 2.3 cents to close at US$2.43 per 1,000
US government bond prices didn t budge.
The yield on the 10-year Treasury note held
at 2.02 per cent. The euro was little changed
at US$1.1349 while the dollar edged up to
In metals trading, gold fell US$4.40 to
US$1,183.10 an ounce, silver declined five cents
to US$16.11 an ounce and copper lost two
cents to settle at US$2.40 a pound. AP
ASIA S DAY: Japan s benchmark Nikkei 225 added 1.4 per cent
to 18,343.31 in morning trade. But South Korea s Kospi lost 0.3 per
cent to 2,026.75. Hong Kong s Hang Seng rose 0.4 per cent to
22,985.28, while the Shanghai Composite in mainland China was
up 0.4 per cent at 3,352.90. Other regional markets were mixed,
with shares rising in Singapore and the Philippines, while falling
in Taiwan and Thailand.
BANK OF JAPAN: Expectations are growing that Japan s central
bank will come up with more stimulus measures this month or
next month. That helped send the Nikkei higher.
ENERGY: Benchmark U.S. crude added 44 cents to US$46.82
a barrel on the New York Mercantile Exchange. Brent crude, used
to price international oils, rose 35 cents to US$50.08.
CURRENCIES: The dollar rose to 119.11 yen from 118.38 yen.
The euro cost US$1.1383, down from US$1.1435. AP
gives stocks a
week of gains
How the Dow Jones industrial average
fared on Friday
For the day:
The Dow Jones industrial average
rose 74.22 points, or 0.4 per cent, to
close at 17,215.97.
The Standard & Poor's 500 index
gained 9.25 points, or 0.5 per cent, to
The Nasdaq composite climbed 16.59
points, or 0.3 per cent, to 4,886.69.
For the week:
The Dow is up 131.48 points, or 0.8
The S&P 500 index is up 18.22 points,
or 0.9 per cent.
The Nasdaq is up 56.22 points, or 1.2
For the year:
The Dow is down 607.10 points, or
3.4 per cent.
The S&P 500 index is down 25.79
points, or 1.3 per cent.
The Nasdaq is up 150.63 points, or 3.2
Asian shares mixed as some markets reflect US rally
A currency trader looks
at the monitors at the
foreign exchange dealing
room in Seoul, South
September 30, 2015.
Asian stock markets
Wednesday, led by gains
in Japan where investors
were buoyed by
expectations for more
FILE - In this July 15, 2015 file photo, investors monitor displays of stock information at a
brokerage house in Beijing as Shanghai stocks lost ground despite China's better-than-expected
economic growth in the second quarter. As Chinese President Xi Jinping makes his first state
visit to Washington this week, the outlook for relations is decidedly murkier than when he
hosted President Barack Obama at their last summit less than a year ago. Belief in China's
inexorable rise has been shaken by a stock market plunge and an economic slowdown that have
sent shockwaves through global markets. (AP)
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