Home' Trinidad and Tobago Guardian : June 8th 2014 Contents JUNE 8 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | BG11
News that US employers
added workers at a good clip
for the fourth straight month
helped send the stock market
The Standard & Poor s 500 index notched
another record high, its eighth in the past 10
days. For the week, the index climbed 1.3 per
cent, the third straight in which it has posted
Before the market opened, the Labor Depart-
ment said employers added 217,000 jobs to
their payrolls in May, in the range of what
economists had expected. The unemployment
rate stayed put at 6.3 per cent. Wall Street
forecasters had expected it to inch up.
"It s another positive sign, along with retail
sales, housing and everything else we ve been
seeing," said JJ Kinahan, chief strategist at TD
"There s nothing in this report to slow this
market down, but all everyone has wanted to
talk about is why the market is going to fall."
The S&P 500 index gained 8.98 points, or
0.5 per cent, to close at 1,949.44.
The Dow Jones industrial average rose 88.17
points, also 0.5 per cent, to 16,924.28, and
the Nasdaq composite climbed 25.17 points,
0.6 per cent, to 4,321.40.
Major indexes began a steady climb at the
start of the day then spent the afternoon sitting
tight. Industrial and energy companies, whose
success often hinges on economic growth, led
seven of the 10 sectors in the index higher.
Investor began to feel more optimistic earlier
in the week on signs that the US economy
had shaken off a rough winter and on big steps
by the European Central Bank to revive the
region s economy.
Other reports revealed a rise in manufac-
turing growth in the world s two largest
economies, US and China. A survey of the US
service industry, which employs roughly nine
out of every ten workers, showed an increase
in new orders, production and hiring.
Even so, many investors question the stock
market s slow and steady rise. There hasn t
been a "correction," Wall Street-speak for a
drop of 10 per cent or more, since August
The market is starting to get expensive com-
pared with the historical average. Investors
are currently paying US$17 for every US$1 in
earnings for companies in the S&P 500 index,
up from the historical average around US$15.
Robert Pavlik, chief market strategist at
Banyan Partners, a wealth-management firm,
said he wouldn t be surprised to see the market
drop in the summer months, especially if com-
panies turn in dismal second-quarter results.
"The stock market isn t all that expensive
right now," Pavlik said, "but I just don t see
the earnings growth. That s why I think sec-
ond-quarter earnings will be important."
Arista Networks soared in its first day of
trading on the New York Stock Exchange.
Arista raised US$225 million from investors in
its initial public offering late Thursday, selling
more than five million shares at a price of
US$43 each. The company makes networking
equipment for cloud computing, and had
reportedly delayed its IPO after tech stocks
took a beating in April.
Arista s stock jumped an even US$12, or 28
per cent, to US$55.
Gap rose 87 cents, or 2.0 per cent, to
US$42.06. After the market closed Thursday,
Gap reported higher sales in May thanks to
gains in its Banana Republic and Old Navy
brands. Sales at stores open at least a year
rose 1 percent, much better than analysts
One loser was Hertz, which slumped after
the car-rental company said in a regulatory
filing that it needs to correct its financial results
for the past three years because of accounting
errors. Hertz Global Holdings dropped US$2.76,
or 9 per cent, to US$27.73.
In overseas markets, Germany s main stock
index, the DAX, rose 0.4 per cent to a record
high. Both France s CAC 40 and Britain s FTSE
100 closed with gains of 0.7 per cent
In the market for US government bonds,
the yield on the 10-year Treasury was
unchanged from late Thursday at 2.59 per
cent. The price of oil rose 18 cents to US$102.66
a barrel. AP
How the Dow Jones
The Standard & Poor s 500 index notched
its eighth record high in the last 10 trading
days Friday after the US government reported
more healthy job growth in May.
US employers added 217,000 jobs last
month, in line with forecasts. The unemploy-
ment rate stayed put at 6.3 per cent.
The Dow Jones industrial average rose
88.17 points, also 0.5 per cent, to
The S&P 500 index gained 8.98 points,
or 0.5 per cent, to close at 1,949.44.
The Nasdaq composite climbed 25.17
points, 0.6 per cent, to 4,321.40.
For the week:
The Dow is up 207.11 points, or 1.2 per
The S&P 500 is up 25.87 points, or 1.3
The Nasdaq composite is up 78.78
points, or 1.9 per cent.
For the year:
The Dow is up 347.62 points, or 2.1 per
The S&P 500 index is up 101.08 points,
or 5.5 per cent.
The Nasdaq is up 144.81 points, or 3.5
LONDON---Global stock markets rose Friday after the
official US jobs report showed a healthy pace of hiring in
the world s largest economy.
The Labor Department said 217,000 jobs were added in
May, around market expectations. The unemployment rate
remained at 6.3 per cent, better than forecasts for it to edge
up.The news helped pushed major indexes higher after a
mixed trading session in Asia.
In Europe, Germany s DAX rose 0.4 percent to close
at 9,987.19 while France s CAC 40 gained 0.7 per cent
to 4,581.12. Britain s FTSE 100 advanced 0.7 per cent
European stocks were still supported somewhat by the
previous day s announcement by the European Central Bank
of new monetary stimulus measures.
In the US, the S&P 500 rose further into record ter-
ritory, gaining 0.4 per cent to 1,947.88. The Dow
edged up 0.4 per cent to 16,900.81.
Earlier, most Asian benchmarks ended lower. Japan s
Nikkei 225 closed nearly flat at 15,077.24 while Hong
Kong s Hang Seng slipped 0.7 per cent to 22,951.04.
In mainland China, the Shanghai Composite Index
lost 0.5 per cent to 2,029.96. Australia s S&P/ASX
200 rose 0.5 per cent to 5,464.00. Markets in South
Korea were closed for a holiday.
In currency markets, the euro weakened to $1.3639
from $1.3659 in late trading Thursday.
The dollar rose to 102.53 yen from 102.43 in late
Oil prices dipped, with benchmark crude for July delivery
down 9 cents to US$102.39 in electronic trading on the
New York Mercantile Exchange. AP
A trader watches his screens as the curve of the German stock index DAX appears on a board behind him, shortly after the German Stock Index,
DAX, for the first time rose above 10,000 points at the stock market in Frankfurt, Germany on June 5, 2014. AP
Global stocks rise on US hiring report
US stocks head higher
after jobs report
Links Archive June 7th 2014 June 9th 2014 Navigation Previous Page Next Page