Home' Trinidad and Tobago Guardian : June 29th 2014 Contents JUNE 29 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG11
into Wall Street on Fri-
day as major stock
indexes drifted slightly
higher going into the
weekend. The listless
day of trading left the stock market
with a tiny loss for the week, its second
A handful of corporate results drove
trading in some big names. Warnings
of weaker earnings pushed DuPont
down, while stronger results pushed
Nike up. But the overall market was
"The fact is, it s the summer, and
there isn t much happening," said Jack
Ablin, chief investment officer at BMO
Private Bank in Chicago.
That could change quickly. Turmoil
in the Middle East could easily rattle
U.S. markets, especially if the fighting
in Iraq drives oil prices too high, Ablin
said. Rising tensions between Ukraine
and Russia also remain a concern.
"The risk in the summer typically
isn t financial, it s political," he said.
"This summer it s geopolitical: Iraq
The Standard & Poor s 500 index
edged up 3.74 points, or 0.2 per cent,
to close at 1,960.96. The most widely
used benchmark for stock funds lost
1.91 points for the week, a loss of 0.1
The Dow Jones industrial average
rose 5.71 points, less than 0.1 percent,
to close at 16,851.84, while the Nasdaq
composite rose 18.88 points, or 0.4
percent, to 4,397.93.
Many investors have been waiting
for the market to take a break from its
long climb. The S&P 500 has gained
5.8 per cent in three months and
reached its latest all-time high on June
20, one week ago.
In Friday trading, Micheals Compa-
nies made a minor gain in its return
to the stock market. Bain Capital and
the Blackstone Group, two private equi-
ty firms, bought the operator of arts
and crafts stores in 2006 and returned
it to investors in a US$472 million initial
public offering. Much of the money
raised in the IPO will be used to pay
down debt. The company s stock rose
2 cents to US$17.02, just two cents
above its IPO price.
DuPont dropped $2.26, or 3 per cent,
to US$65.44. The company cut its
profit forecast late Thursday as a result
of weaker sales of corn seeds.
Nike gained 82 cents, or 1 per cent,
to US$77.68 after reporting earnings
late Thursday that beat Wall Street s
expectations. Stronger worldwide sales
offset marketing costs for the World
Cup soccer tournament. Nike provided
the outfits for 10 national teams,
including Team USA, for the World
Cup in Brazil.
Bond prices were little changed. The
yield on the 10-year Treasury note held
steady at 2.53 per cent. The price of
oil fell 10 cents to settle at US$105.74
a barrel. AP
World stocks struggled on Friday after
reports showed growth was weak in
US consumer spending and Chinese
industrial profits, casting doubts on
how strongly the world s two biggest
economies can rebound.
After Asian indexes closed lower, European stocks failed to
make much headway. France s CAC 40 fell 0.1 per cent to close
at 4,436.98 while Germany s DAX edged up 0.1 per cent to
9,815.17. The FTSE 100 index of leading British companies rose
0.3 per cent to 6,757.77.
US stocks were trading slightly lower, with the Dow 0.2 per
cent lower at 16,811.99 while the S&P 500 slipped 0.1 per cent
Market sentiment took a hit after a report on Thursday showed
US consumer spending, which accounts for 70 per cent of eco-
nomic activity, inched up in May at half the rate that economists
had predicted. The poor reading disappointed investors who
had been looking for stronger signs that the US economy is
bouncing back after shrinking 2.9 per cent in the first quarter.
Many had been predicting the contraction was a blip because
of a harsh winter.
"The whole world is looking for a big (US) GDP rebound in
the second quarter. The whole world is likely to be disappointed,"
economists at Singaporean bank DBS said in a research report.
Adding to the pessimism, Chinese industrial profits grew 8.9
per cent in May, the slowest rate this year, a sign that the No
2 economy continues to struggle with an extended slowdown.
Japan s benchmark Nikkei 225 tumbled 1.4 per cent to close
at 15,095.00 while South Korea s Kospi shed 0.3 per cent to
end at 1,988.51.
Hong Kong s Hang Seng pulled back losses to edge up 0.1
per cent to 23,221.52 while the Shanghai Composite Index in
mainland China lost 0.1 per cent to 2,036.51. Australia s S&P/ASX
200 fell 0.4 percent to 5,445.10.
In currencies, the dollar slipped to 101.38 Japanese yen from
101.66 yen in late trading Thursday. The euro rose to $1.3630
In energy trading, the price of US benchmark crude for August
delivery fell 28 cents to $105.56 per barrel in electronic trading
on the New York Mercantile Exchange. The contract fell 47
cents on Thursday.
struggle after mixed
US stocks end
The Dow Jones industrial
average rose 5.71 points,
less than 0.1 per cent, to
close at 16,851.84.
The Standard & Poor s
500 index rose 3.74 points,
or 0.2 per cent, to 1,960.96.
The Nasdaq composite
index rose 18.88 points, or
0.4 per cent, to 4,397.93.
For the week:
The Dow fell 95.24
points, or 0.6 per cent.
The S&P 500 fell 1.91
points, or 0.1 per cent.
The Nasdaq rose 29.89
points, or 0.7 per cent.
For the year:
The Dow is up 275.18
points, or 1.7 per cent.
The S&P 500 index is up
112.60 points, or 6.1 per
The Nasdaq is up 221.34
points, or 5.3 per cent.
Links Archive June 28th 2014 June 30th 2014 Navigation Previous Page Next Page