Home' Trinidad and Tobago Guardian : October 25th 2015 Contents OCTOBER 25 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
US stocks closed higher on Fri-
day, delivering their second
gain in two days and pushing
the Standard & Poor s 500
index back into positive ter-
ritory for the year.
Strong quarterly earnings from several big-
name technology companies helped rally the
market, which has been gradually regaining
ground following a swoon in August and Sep-
tember. Microsoft vaulted to a 15-year high,
while Amazon and Google s parent company
Alphabet closed sharply higher.
Investors also welcomed an interest rate cut
by China s central bank and the possibility of
more economic stimulus for Europe.
"It s been a great couple of days for the
market and it s actually impressive to see such
a good follow-up after yesterday s unbelievable
move," said JJ Kinahan, TD Ameritrade s chief
The Nasdaq composite, which is heavily
weighted with technology stocks, rose 111.81
points, or 2.3 per cent, to 5,031.86.
The Dow Jones industrial average rose 157.54
points, or 0.9 per cent, to 17,646.70. The S&P
500 index climbed 22.64 points, or 1.1 per
cent, to 2,075.15.
The gains pushed the Nasdaq up 6.3 per
cent for the year. The S&P 500 index is now
up 0.8 per cent. The Dow is down 1 per cent.
The stock indexes notched healthy gains
early on Friday, as investors bid up shares in
Microsoft, Amazon and Alphabet a day after
the three tech giants reported surprisingly
strong quarterly results.
Microsoft surged US$4.84, or 10.1 per cent,
to US$52.87. Amazon gained US$35.12, or 6.2
per cent, to US$599.03, while Alphabet climbed
US$38.19, or 5.6 per cent, to US$719.33.
Shares in Capital One Financial jumped 8.2
per cent. The credit card issuer and lender
reported third-quarter earnings late Thursday
that came in ahead of Wall Street s expecta-
tions. The stock added US$6.18 to US$81.12.
The market action in the US followed a
rally in European and Asian stock markets as
traders welcomed new action by China s cen-
tral bank and the possibility of more stimulus
China s central bank on Friday announced
cuts in its benchmark interest rates on loans
and deposits. It was the sixth interest-rate
cut in a year.
A day earlier, the head of the European
Central Bank hinted that the bank might
extend its US$1.2 trillion bond purchase pro-
gram or take other measures to stimulate the
Eurozone s economy.
"Both of those were positive and begin to
lift the cloud of uncertainty which drove the
volatility in the third quarter," said Michael
Baughen, global investment specialist at JP
Morgan Private Bank.
Next week, the spotlight turns to the world s
other big central banks, the Federal Reserve
and the Bank of Japan, which are holding pol-
icy meetings at which officials will undoubt-
edly factor the ECB s intentions into their
Wall Street has been trying to discern when
the Fed will begin to raise its benchmark inter-
est rate from a record low near zero, where
it s been since late 2008.
Six of the 10 sectors in the S&P 500 index
moved higher, led by technology stocks. The
sector rose 3 per cent and is up 6.6 per cent
this year. Utilities stocks declined the most,
sliding 1.8 per cent and extending its loss for
the year to 5.7 per cent.
While only about a quarter of the companies
in the S&P 500 index have reported results
this earnings season, the market has seen some
encouraging signs so far.
"There are just hints everywhere that things
might not be in the dire situation we were all
thinking it was a month ago," Kinahan said,
citing strong sales growth for General Motors,
which gets more than half its revenue from
China, and Amazon.com.
Some companies failed to live up to expec-
Pandora Media tumbled 35.4 per cent after
the Internet radio giant reported a loss for the
third quarter and gave a weak outlook. The
stock lost US$6.80 to US$12.39. Skechers USA
slumped 31.5 per cent after the shoe company s
revenue disappointed Wall Street. The stock
slid US$14.55 to US$31.64.
Overseas, Germany s DAX gained 2.9 per
cent, while France s CAC 40 rose 2.5 per cent
Britain s FTSE 100 climbed 1.1 per cent. Japan s
Nikkei 225 jumped 2.1 per cent, while South
Korea s Kospi gained 0.9 per cent. Hong Kong s
Hang Seng added 1.3 per cent.
Benchmark US crude fell 78 cents to
US$44.60 a barrel on the New York Mercantile
Exchange. Brent Crude fell 9 cents to US$47.99
a barrel in London.
Wholesale gasoline fell 0.3 cents to close at
US$1.304 a gallon, heating oil fell 1.1 cents to
close at US$1.454 a gallon and natural gas fell
10 cents to close at US$2.286 per 1,000 cubic
Gold fell US$3.30 to US$1,162.80 an ounce,
silver slipped a penny to US$15.83 an ounce
and copper declined 3 cents to US$2.35 a
US government bond prices fell. The yield
on the 10-year Treasury note rose to 2.09 per
cent from 2.03 per cent the day before.
The dollar rose to 121.41 yen. The euro fell
to US$1.1009. AP
Asian stock markets were mostly lower
Thursday as a weak lead from Wall Street
and disappointing earnings reports dented
KEEPING SCORE: Japan s Nikkei 225
dipped 0.1 per cent to 18,530.65 while
South Korea s Kospi dropped 0.5 per cent
to 2,032.59. Hong Kong s Hang Seng index
fell 0.8 per cent to 22,790.35 and China s
Shanghai Composite index was nearly
unchanged at 3,321.34. Australia s S&P/ASX
200 shed 0.1 per cent to 5,240.80.
SAMSUNG DIVES: Shares of Sam-
sung Engineering traded nearly 17 per cent
lower in Seoul after diving as much as 24
per cent following its announcement of a
quarterly net loss of 1.3 trillion won
(US$1.14 billion) for the July-September
The engineering company with a market
value of about 1.1 trillion won said it will
sell 1.2 trillion won of new shares to
improve its financial status and seek to
sell its headquarters building worth 350
billion won (US$308 million). Samsung
SDI, the biggest shareholder in Samsung
Engineering, plunged about four per cent
and Samsung Heavy Industries, another
Samsung affiliated company, sank nearly
five per cent.
CURRENCIES: The euro gained to
US$1.135 from US$1.134 while the dollar
rose to 119.91 yen from 119.90 yen. AP
People are reflected on
the electronic board of a
securities firm in Tokyo,
Monday, September 28,
2015. Asian stocks were
mostly lower Monday
following Wall Street's
loss last week as
investors looked ahead
to Chinese and US
economic data. AP
How the Dow Jones industrial
average fared on Friday
For the day:
The Dow Jones industrial average gained
157.54 points, or 0.9 per cent, to close at
The S&P's 500 index added 22.64 points,
or 1.1 per cent, to 2,075.15.
The Nasdaq composite rose 111.81 points,
or 2.3 per cent, to 5,031.86.
For the week:
The Dow is up 430.73 points, or 2.5 per
The S&P 500 index is up 42.04 points, or
2.1 per cent.
The Nasdaq is up 145.18 points, or 3 per
For the year:
The Dow is down 176.37 points, or 1 per
The S&P 500 index is up 16.25 points, or
0.8 per cent.
The Nasdaq is up 295.81 points, or 6.3 per
Specialist Mark Fitzgerald, right, works at the post on the floor of the New York Stock
Exchange that trades Pandora, Friday, October 23, 2015. Streaming music company Pandora
has agreed to pay USUS$90 million to settle a lawsuit brought by major record labels over its
use of recordings released before 1972. AP
US tech stocks
lead a rally;
S&P 500 turns
positive for year
Asian stocks mostly lower on weak Wall Street lead, earnings
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