Home' Trinidad and Tobago Guardian : June 15th 2014 Contents JUNE 15 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG11
NEW YORK---US stocks edged up on
Friday, boosted by bullish news from the
tech sector, but major indexes fell for the
week as unrest in Iraq kept investors on
Intel Corp was one of the S&P 500 s
biggest gainers and one of Nasdaq s most
active names, but overall gains were capped
as investors kept a close watch on violence
in Iraq that drove oil prices to their highest
Analysts are worried about the impact
a protracted period of high commodity
prices could have on economic growth,
especially with indexes near record lev-
els.President Barack Obama said on Friday
he needs several days to determine how
the United States will help Iraq deal with
a militant insurgency, but he ruled out
sending US troops back into combat and
said any intervention would be contingent
on Iraqi leaders becoming more involved.
"The situation in Iraq is another one
of these geopolitical flare-ups that have
a short-term impact on the market. It
will continue to create volatility in the oil
market, but I don t think it will spill over
that much to equities," said Randy Fred-
erick, managing director of trading and
derivatives at Charles Schwab.
The CBOE Volatility index VIX, Wall
Street s so-called fear gauge, fell 3 per
cent to 12.18 on Friday.
Intel shares jumped nearly 7.0 per cent
to US$29.87 a day after the Dow com-
ponent raised its full-year revenue outlook,
citing stronger-than-expected demand
for personal computers used by business-
es.OpenTable Inc popped 48.3 per cent
to US$104.48 in heavy trading after Price-
line Group Inc said it would buy the com-
pany for US$2.6 billion. Priceline fell 3.0
per cent to $1,189.30.
Among other Internet names, Yelp Inc
jumped 13.8 per cent to $74.92 and Grub-
Hub Inc rose 7.0 per cent to $36.00.
The Dow Jones industrial average rose
41.55 points or 0.25 per cent, to 16,775.74,
the S&P 500 gained 6.05 points or 0.31
per cent, to 1,936.16, and the Nasdaq Com-
posite added 13.02 points or 0.3 per cent,
For the week, the Dow was down 0.9
per cent, the S&P fell 0.7 per cent and the
Nasdaq was down 0.25 per cent.
The week s decline was the first after
three weeks of consecutive gains on the
S&P 500. For the year, the broad market
index is up about 4.8 per cent.
Brent crude edged further above US$113
a barrel on Friday, up about $4 since the
start of the week, on concerns that an
insurgency in Iraq could trigger civil war
and eventually hit oil exports.
In macroeconomic news, US consumer
sentiment unexpectedly fell in June as views
by consumers with the lowest incomes
soured, according to the preliminary June
read from the Thomson Reuters/University
of Michigan s index.
Finisar Corp plunged 21.9 per cent to
US$19.71 a day after forecasting weaker-
than-expected earnings, citing higher cap-
ital expenditure in China.
Trading volume was at around 5.07 bil-
lion shares on US exchanges, below last
month s average of about 5.76 billion,
according to data from BATS Global Mar-
LONDON---World stock markets were mixed
on Friday as investors weighed disappointing
US economic data and upbeat forecasts from
Intel, the computer chipmaker.
Sentiment has been subdued last week,
particularly since a US report on Thursday
showed retail sales in the world s largest econ-
omy did not grow as much as expected in
May. Further denting optimism was the rise
in oil prices, which can hurt the growth
prospects for companies.
In Europe, France s CAC 40 slipped 0.2
per cent to close at 4,543.28 and Ger-
many s DAX lost 0.3 per cent to 9,912.87.
Britain s FTSE 100 fell 1.0 per cent to
In the US, however, markets managed to
eke out gains after Intel said sales of com-
puters to businesses were stronger than
expected, a good sign for the broader econ-
The Dow was 0.2 per cent higher at
16,762.13 and the S&P 500 was up by the
same rate, to 1,933.70. Shares in Intel
jumped 6.0 per cent.
Traders were monitoring developments in
Iraq, where Islamic militants vowed to march
on Baghdad after pushing deep into parts of
the country s Sunni heartland previously con-
trolled by US forces. US officials ruled out
putting troops back on the ground.
"For traders often jaded by seemingly con-
stant news of potential geopolitical risks, the
situation in Iraq looks a real concern," said
Ric Spooner, chief market analyst at CMC
Markets in Sydney. "Markets have been sur-
prised by the speed and extent of rebel incur-
sions into the south."
The US benchmark oil contract for July
delivery was up 8 cents to US$106.61 a barrel
in electronic trading on the New York Mer-
cantile Exchange. The contract rose US$2.13
In Asia, stocks mostly rose on the news
that Chinese industrial production rose 8.8
per cent in May, in line with analyst expec-
tations, while retail sales grew faster.
The latest numbers fueled hopes that recent
mini-stimulus measures by authorities will
prevent the economy from slowing too
"The overall May data confirmed moderate
recovery in the economy in the second quar-
ter," economists at JP Morgan wrote in a
Japan s benchmark Nikkei 225 recouped
earlier losses to close 0.8 per cent higher
at 15,097.84. South Korea s Kospi lost 1
per cent to end at 1,990.85.
Hong Kong s Hang Seng climbed 0.6
per cent to 23,319.17 and the Shanghai
Composite Index in mainland China
added 0.9 per cent to 2,070.71. Australia s
S&P/ASX lost 0.4 per cent to 5,405.10.
In currencies, the euro slid 0.2 per cent to
$1.3529 while the pound rose 0.2 per cent
against the dollar to US$1.6964, nearing a
five-year after the Bank of England hinted it
could raise interest rates sooner than previ-
The dollar rose 0.4 per cent against
the yen, to 102.06 yen. AP
: The curve of the German stock index DAX is displayed on a board at the stock market in Frankfurt, Germany, when the DAX reached
more than 10, 000 points for the first time in history on June 5, 2014. AP
Wall St edges up on Intel
but posts weekly decline
How US stocks did Friday
A flurry of corporate deals and a positive
outlook for the technology industry gave
the stock market a lift Friday.
Still, major indexes had their first weekly
losses in a month.
A combination of so-so economic news
and concerns about the impact of higher
oil prices weighed on stocks earlier in the
The Dow Jones industrial average rose
41.55 points, or 0.3 per cent, to
The Standard & Poor s 500 index rose
6.05 points, or 0.3 per cent, to 1,936.16.
The Nasdaq composite rose 13.02
points, or 0.3 per cent, to 4,310.65.
For the week:
The Dow is down 148.54 points, or 0.9
The S&P 500 is down 13.28 points, or
0.7 per cent.
The Nasdaq dropped 10.74 points, or
0.3 per cent.
For the year:
The Dow is up 199.08 points, or 1.2 per
The S&P 500 is up 87.80 points, or 4.8
The Nasdaq is up 134.06 points, or 3.2
Links Archive June 14th 2014 June 16th 2014 Navigation Previous Page Next Page