Home' Trinidad and Tobago Guardian : November 1st 2015 Contents The stock market drifted lower
Friday but finished October
with its biggest monthly gain
in four years. US government
economic data released Friday
and earlier this week suggests
the economy is still sluggish, stuck in a pattern
of gradual but uneven growth it has followed
since the Great Recession. But the outlook for
future growth improved and fears waned that
a slowing Chinese economy would send the
US economy into a tailspin.
Strong corporate earnings in some sectors,
like health care and telecommunications, also
helped propel the market all the way back to
positive for the year after a swoon in August
and a rocky September.
Paul Christopher, global market strategist
for Wells Fargo, said investors are now gaining
confidence in the US economy and are more
hopeful that China won t suffer an abrupt
"We could see investors finally put that cor-
rection in August and those fears permanently
behind them," he said.
The Standard & Poor s 500 index has risen
for five consecutive weeks and it ended October
up 8.3 per cent, its best month since October
2011. The index s increase of 159 points was
the biggest in its 77-year history. The next-
best month was March 2000, the height of
the dot-com bubble, when it rose 132 points.
Sam Stovall, US equity strategist at S&P
Capital IQ, said a very strong October usually
means the market won t make big gains in
November and December, muting the so-called
Santa Claus rally. He does expect stocks to
keep rising for the rest of this year, though,
and make gains in 2016, lifted by overall eco-
nomic growth and improving corporate earn-
He said 2016 "has a chance of being a good
year but not a great year" for equities. "Investors
will continue to buy the dips until the prospect
of either a US or global recession spooks
On Friday, stocks were largely flat through
much of the day, venturing into positive territory
in the early afternoon before ending lower. The
S&P 500 lost 10.05 points, or 0.5 per cent, to
2,079.36. The Dow Jones industrial average
dipped 92.26 points, or 0.5 per cent, to
17,663.54. The Nasdaq composite index slid
20.53 points, or 0.4 per cent, to 5,053.75.
The Commerce Department said Friday that
consumer spending inched up just 0.1 per cent
in September, partly because consumers were
spending less on gasoline as energy prices fell.
The gain was the smallest in eight months.
The department said Thursday that economic
growth slowed sharply in the summer, although
most economists think the economy has
improved this month.
Wells Fargo s Christopher said the November
and December US unemployment reports will
help set the course of the markets for the rest
of this year, along with the Federal Reserve s
interest rate policies.
The busiest week of third-quarter earnings
wrapped up Friday with big moves for a slew
of companies. The professional networking
service LinkedIn surpassed analyst estimates
and its stock gained US$23.87, or 11 per cent,
Drugmaker AbbVie surged as sales of its
anti-inflammatory Humira, the biggest-selling
drug in the world, continued to rise. AbbVie
rose US$5.45, or 10.1 per cent, to US$59.55.
Chevron, the second-largest US oil company,
said its profit fell almost two-thirds. The com-
pany said it will eliminate around 10 per cent
of its jobs, or up to 7,000 positions, and will
also slash capital and exploration spending as
it deals with lower oil prices that are cutting
deeply into profit.
Valeant Pharmaceuticals suffered more losses
Friday as controversy around its drug prices
and sales practices climbed. The stock sank
US$17.73, or 15.9 per cent, to US$93.77. On
Thursday the two largest pharmacy benefits
management companies in the US, CVS and
Express Scripts, cut ties with a Valeant-linked
specialty pharmacy called Philidor. Philidor
has been criticized as a "phantom pharmacy"
used to artificially boost Valeant s sales. On
Friday Valeant said Philidor has informed it
that it will shut down as soon as possible.
Bond prices rose. The yield on the 10-year
Treasury note fell to 2.14 per cent.
Benchmark US crude rose 53 cents, or 1.2
per cent, to US$46.59 a barrel in New York.
Brent crude, which is used to price international
oils, advanced 76 cents, or 1.6 per cent, to
US$49.56 a barrel in London. Wholesale gaso-
line rose 5.5 cents, or 4.1 per cent, to US$1.405
a gallon. Heating oil picked up 2.5 cents, or 1.7
per cent, to US$1.499 a gallon. Natural gas
rose 6.4 cents, or 2.8 per cent, to US$2.321 per
1,000 cubic feet.
Gold fell US$5.90, or 0.5 per cent, to
US$1,414.40 an ounce. Silver rose 1.7 cents,
or 0.1 per cent, to US$15.57 an ounce. Copper
slipped a fraction of a cent to US$2.257 a pound.
The dollar lost value against the yen, falling
to 120.67 yen from 121.11 on Thursday. The
euro rose compared to the dollar, reaching
US$1.099 from US$1.0974. AP
NOVEMBER 1 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
Traders gather at the post that handles Allergan on the floor of the New York Stock Exchange,Thursday, October 29, 2015. Allergan, which makes
Botox, jumped eight per cent after saying it has held talks with Pfizer about a sale. AP
US stocks slip but finish month
with biggest gain in four years
A currency trader looks at the computer monitors at the foreign exchange dealing room
in Seoul, South Korea, Wednesday, October 21, 2015. Asian stock markets were mostly
higher Wednesday as Japan's weak export figures boosted hopes for more central bank
Asia stocks muted, NZ dollar jumps on China one-child change
Asian stock markets were muted
Friday on renewed expectations
for a Fed rate hike this year while
the New Zealand dollar jumped
on prospects of increased dairy
exports after China abolished its one-child pol-
KEEPING SCORE: Japan s Nikkei 225 was up
0.2 per cent to 18,974.90 after the Bank of Japan
left its super-easy monetary policy unchanged.
Hong Kong s Hang Seng was down 0.2 per cent
at 22,775.25 while South Korea s Kospi was little
changed at 2,034.74. China s Shanghai Composite
rose 0.1 per cent to 3,391.41.
Australia s S&P/ASX 200 fell 0.2 per cent to
5,257.30. Stock benchmarks rose in Taiwan, Sin-
gapore and Thailand and dropped in the Philip-
pines and Indonesia.
KIWI FLIES: The New Zealand dollar, known
as the Kiwi after the country s flightless native
bird, surged in the wake of China s announcement
it would allow all couples to have two children,
abolishing its unpopular one-child policy. New
Zealand is a major dairy exporter and its milk
powder and baby formula industry is likely to
benefit from a baby boomlet in China. The kiwi
dollar jumped to US$0.6758 from US$0.6699 the
WALL STREET: The Dow Jones industrial
average fell 23.72 points, or 0.1 per cent, to 17,755.80
on Thursday. The Standard & Poor s 500 dipped
0.94 point to 2,089.41. The Nasdaq composite
sank 21.42 points, or 0.4 per cent, to 5,074.27.
ENERGY: Benchmark US crude was down 17
cents to US$45.89 a barrel in electronic trading
on the New York Mercantile Exchange. The con-
tract added 12 cents to US$46.06 a barrel in New
York on Thursday. Brent crude, which is used to
price international oils, lost 9 cents to US$48.71
a barrel in London.
CURRENCIES: The dollar slipped to 120.92
yen from 120.95 yen on Thursday. The euro fell
to US$1.0969 from US$1.0990. AP
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