NEW YORK -- Stock markets pulled back on Wednesday as trade war worries lingered, with Asian markets also buffeted by unease over massive civil protests in Hong Kong.
Asian markets kicked off the losses after two days of healthy gains, with Hong Kong the worst performer -- sinking two percent as a huge anti-government protest paralyzed key roads in the city before turning violent.
European indices followed suit with losses of around half a percent by the close, while Wall Street, having opened steady, slid gently downwards. The broad-based S&P 500 ended down 0.2 percent.
"The market is concerned about the US economic growth, global growth, and the tariffs issue," said Quincy Krosby, chief market strategist of Prudential Financial.
Krosby said investors were also somewhat less hopeful that the Federal Reserve will cut interest rates soon, after the United States withdrew a plan to impose tariffs on Mexico.
Profit-takers moved in also as traders keep a nervous eye on developments in the China-US trade saga ahead of a possible meeting between Donald Trump and his Chinese counterpart Xi Jinping at the Group of 20 summit in Japan later this month.
Oil prices slumped after data pointed to a jump in US stockpiles, exacerbating worries about oversupply and weakening demand growth.
"Oil prices have struggled to retain (recent) bullish gains as traders stay cautious over heightened geopolitical risks and persistent weakness in the global economic backdrop," said Benjamin Lu, commodities analyst with Phillip Futures in Singapore.
Lu and other analysts said oil prices had been winning support from expectations that the Organization of the Petroleum Exporting Countries and Russia would agree at a meeting this month to extend output cuts beyond June.
Elsewhere in commodities, cocoa futures rose sharply after key producers Ivory Coast and Ghana stopped sales in a push for higher prices, dealers said.
The September forward contract for the commodity, listed in New York, reached an 11-month high, hitting $2,545, a rise of around 1.6 percent on the day.
The two African nations, which together account for 60 percent of the world's cocoa production, summoned buyers to Accra demanding a price of $2,600 per ton.
The meeting reached agreement in principle, a Ghana official announced, but implementation remains an issue.
KEY FIGURES AROUND 2050 GMT (4:50 a.m. Thursday in Manila)
New York - Dow: DOWN 0.2 percent at 26,004.83 (close)
New York - S&P 500: DOWN 0.2 percent at 2,879.84 (close)
New York - Nasdaq: DOWN 0.4 percent at 7,793.72 (close)
London - FTSE 100: DOWN 0.4 percent at 7,367.62 (close)
Frankfurt - DAX 30: DOWN 0.3 percent at 12,115.68 (close)
Paris - CAC 40: DOWN 0.6 percent at 5,374.92 (close)
EURO STOXX 50: DOWN 0.4 percent at 3,386.63 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 21,129.72 (close)
Hong Kong - Hang Seng: DOWN 1.7 percent at 27,308.46 (close)
Shanghai - Composite: DOWN 0.6 percent at 2,909.38 (close)
Euro/dollar: DOWN at $1.1288 from $1.1326 at 2100 GMT
Pound/dollar: DOWN at $1.2687 from $1.2725
Dollar/yen: DOWN at 108.51 yen from 108.52 yen
Oil - Brent North Sea: DOWN $1.16 at $61.13 per barrel
Oil - West Texas Intermediate: DOWN $1.21 at $52.06 per barrel
source: news.abs-cbn.com
NEW YORK -- The S&P 500 slipped on Wednesday after ending the previous session with a record and the Nasdaq failed to hold all-time highs reached earlier in the day while investors waited for more earnings reports.
Energy stocks were the biggest drag on the S&P 500 as oil prices fell. While the tech-heavy Nasdaq had help from eBay Inc's upbeat earnings and a chipmaker rally, investors were digesting a mixed bag of reports. The S&P 500, closing roughly 0.5 percent below its intraday record high hit in late September, has rallied about 17 percent year-to-date. It has been supported by a dovish Federal Reserve, hopes of a US-China trade deal and largely upbeat earnings. But, with big companies such as Microsoft Corp and Facebook Inc, reporting after the close on Wednesday and Amazon.com and Intel Corp reports on tap for Thursday afternoon, many investors kept to the sidelines.
"While the expectations are for good reports from all four of them, recent strength and relative valuations are keeping people on the edge of their seat," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"There was no needle moving news today for people to be making bigger bets on anything after the big move we had yesterday."
In aftermarket trading, Microsoft shares rose about 3 percent and Facebook shares gained nearly 5 percent.
At the market close on Wednesday, the Dow Jones Industrial Average fell 59.34 points, or 0.22 percent, to 26,597.05, the S&P 500 lost 6.43 points, or 0.22 percent, to 2,927.25 and the Nasdaq Composite dropped 18.81 points, or 0.23 percent, to 8,102.02.
Profits of S&P 500 companies are expected to decline 1.1 percent for the first quarter, still a large improvement from the 2.3 percent drop estimated at the start of April. And nearly 78 percent of the 129 companies that have reported so far have surpassed earnings estimates, according to Refinitiv data.
"The overall picture confirms the economy is on a steady footing. It's skewing to the positive side," said Laura Kane, head of Americas thematic investing at UBS Global Wealth Management.
"The market is taking a pause," she said. "We've a lot of earnings coming this week and next. There's nothing today that would change the overall economic outlook."
Only three of the S&P 500's 11 major industry sectors ended the day in positive territory, and real estate led the gainers with a 0.8 percent rise. Energy was the biggest decliner with a 1.9 percent drop.
The technology sector lost its gains late in the session to close down 0.01 percent and the Philadelphia Semiconductor Index closed up 0.95 percent after hitting an all-time high during the session. Texas Instruments Inc rose 1.8 percent after its quarterly report.
Caterpillar Inc fell 3 percent as rising costs hit margins in its construction equipment business and the company reported tepid sales in the Asia-Pacific region.
AT&T Inc was the biggest drag on the S&P 500, declining 4 percent after the second-largest US wireless carrier reported quarterly revenue below Wall Street estimates.
EBay jumped 5 percent after the company raised its full-year sales and profit forecasts.
Anadarko Petroleum Corp jumped 11.6 percent, providing the biggest boost to the S&P 500, after Occidental Petroleum Corp sought to scuttle Chevron Corp's takeover of the company with a $57 billion bid.
Boeing Co closed up 0.38 percent even after scrapping its 2019 outlook and reporting quarterly revenue below estimates due to grounding of its 737 MAX jets. Its shares have lost about 11 percent since the deadly Ethiopian crash in early March.
Advancing issues outnumbered declining ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners.
The S&P 500 posted 49 new 52-week highs and two new lows; the Nasdaq Composite recorded 96 new highs and 37 new lows.
On US exchanges 6.57 billion shares changed hands compared with the 6.65 billion-share average for the last 20 sessions.
source: news.abs-cbn.com
NEW YORK -- World stock markets were pressured Monday, with Asia taking the heaviest hit, as investors worried about signs of a sharp global economic slowdown.
Traders shrugged off news that an investigation found no evidence of collusion between US President Donald Trump's election campaign and Russia.
The pound gave up earlier gains to trade lower against the euro and the dollar after Prime Minister Theresa May admitted Monday she still had not secured the votes needed to get her Brexit deal through parliament, again raising the prospect Britain could crash out of the European Union in 2 weeks' time.
Dealers have been spooked by growing evidence of a slowdown, after a broad-based rally since the start of the year that was built on hopes for China-US trade talks and a more dovish Federal Reserve.
"Concerns over the health of the global economy heat up at a rapid pace," said analyst Jameel Ahmad at traders FXTM.
In Europe key stock markets were lower at the close, with London the weakest performer.
Wall Street finished a choppy session little changed, with little impact from the conclusion of Special Counsel Robert Mueller's report which failed to tie Trump and his campaign to conspiring with Russia to influence the 2016 US presidential election.
"We have rarely if ever commented on the investigation as it has never been seen as a market moving event," said Art Hogan, chief market strategist at National.
"We do not see that changing with the release of the findings."
Apple declined 1.3 percent after product launches that included a game subscription service and a news service, in addition to a subscription streaming service to compete with Netflix, Amazon and other tech giants.
NIKKEI SLUMPS
Tokyo's main stock index was hammered 3.0 percent, while Hong Kong and Shanghai each dived two percent, as concerns festered also over a possible recession in the United States, dealers said.
US and European equities had tumbled Friday as the yield on 10-year Treasury bonds fell below those for 3-month bills -- for the first time since before the global financial crisis.
This so-called inverted yield curve shows investors are more willing to buy long-term debt -- usually considered higher risk -- as they consider the short-term outlook more risky.
"This development will psychologically encourage further anxiety and rocket fears that the global economy is heading for another downturn, if recent economic releases across the globe have not already provided indications that the downturn has arrived," said analyst Ahmad.
The yield curve is closely watched since it has inverted prior to recessions in recent decades.
KEY FIGURES AROUND 5 A.M., MANILA TIME
New York - DOW: UP 0.1 percent at 25,516.83 (close)
New York - S&P 500: DOWN 0.1 percent at 2,798.36 (close)
New York - Nasdaq: DOWN 0.1 percent at 7,637.54 (close)
London - FTSE 100: DOWN 0.4 percent at 7,177.58 (close)
Frankfurt - DAX 30: DOWN 0.2 percent at 11,346.65 (close)
Paris - CAC 40: DOWN 0.2 percent at 5,260.64 (close)
EURO STOXX 50: DOWN 0.2 percent at 3,300.48 (close)
Tokyo - Nikkei 225: DOWN 3.0 percent at 20,977.11 (close)
Hong Kong - Hang Seng: DOWN 2.0 percent at 28,523.35 (close)
Shanghai - Composite: DOWN 2.0 percent at 3,043.03 (close)
Pound/dollar: DOWN at $1.3198 from $1.3209 at 2100 GMT on Friday
Euro/pound: UP at 85.71 pence from 85.59 pence
Euro/dollar: UP at $1.1313 at $1.1302
Dollar/yen: UP at 109.96 yen from 109.92 yen
Oil - Brent Crude: UP 18 cents at $67.21 per barrel
Oil - West Texas Intermediate: DOWN 22 cents at $58.82 per barrel
source: news.abs-cbn.com
TOKYO -- Asia stocks hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong US job and manufacturing data.
MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat. It had scaled a four-month peak on Friday along with a surge in its global peers.
Trade was subdued with many of the region's markets closed for the Lunar New Year. China's financial markets are closed all week, while those in South Korea are shut until Thursday.
Hong Kong's Hang Seng, which is trading for only half a day, edged up 0.2 percent.
Japan's Nikkei added 0.5 percent.
On Wall Street on Friday optimism from a surge in January US job growth was offset by a weaker-than-expected outlook from Amazon.com Inc that battered retail stocks. The Dow nudged up 0.26 percent while the Nasdaq shed 0.25 percent.
"Key points for the markets this week will be how the remaining US corporate earnings releases turn out, and whether they are in line with recent upbeat data," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
"While corporate earnings and fundamentals remain key, political developments, notably the US-China trade situation, remain potential risk factors," he said.
A US Labor Department report on Friday showed non-farm payrolls jumped by a stronger-than-forecast 304,000 jobs last month, the largest gain since February 2018.
That report, along with better-than-expected ISM manufacturing activity numbers for January, pointed to underlying strength in the world's biggest economy.
"After last week's risk appetite revival, the data pulse and the tone of Fed speakers will be important. For the Goldilocks market to continue, we need to find a delicate balance between improving data and still-neutral central banks," strategists at ANZ wrote.
Global equity markets performed strongly last week after the Federal Reserve pledged to be patient with further interest rate hikes, signalling a potential end to its tightening cycle.
Friday's robust economic data triggered a sharp rebound in US Treasury yields, in turn lifting the dollar.
On Monday, the US currency was a shade higher at 109.555 yen after advancing 0.6 percent on Friday.
The euro was little changed at $1.1456 after getting pulled back from a high of $1.1488 on Friday.
The Australian dollar was mostly steady at $0.7244 after slipping 0.4 percent the previous session.
The benchmark 10-year US Treasury yield was at 2.686 percent after climbing nearly 6 basis points on Friday to pull away from a four-week low of 2.619 percent earlier last week.
West Texas Intermediate (WTI) US crude oil futures extended Friday's rally and were last up 0.3 percent at $55.42 per barrel.
On Friday, WTI futures had rallied 2.7 percent on the upbeat US job report, signs that Washington's sanctions on Venezuelan exports have helped tighten supply and data showing US drillers cut the number of oil rigs.
source: news.abs-cbn.com
NEW YORK -- Global stocks were mixed on Wednesday, with Wall Street gyrating on the latest headlines connected to myriad trade conflicts and US airlines and insurers falling ahead of the arrival of a major hurricane.
Bourses in London, Paris and Frankfurt all finished solidly higher, with some investors hunting for bargains after recent weakness, traders said.
"Stocks have ticked up although traders remain nervous about the state of global trading relations," said market analyst David Madden at CMC Markets UK.
In the United States, stocks rallied to session highs soon after a midday Wall Street Journal report that US Treasury Secretary Steven Mnuchin had invited Chinese officials for a bilateral meeting.
But Wall Street equities pulled back a bit later following a Federal Reserve report chronicling rising anxiety across the United States about trade tensions, with some businesses planning to curtail capital spending amid the fog.
A new lobby group called Americans for Free Trade announced plans to campaign against tariffs in the upcoming mid-term elections.
Barclays said trade tension between the US and China "is likely to get worse before it gets better," adding in a new report that both countries would "endure several years or more of modestly slower growth" under the bank's current "baseline" scenario.
FLORENCE HITS AIRLINES, INSURERS
Among other markets, oil prices, especially the US contract for WTI, rose as Hurricane Florence moved towards the eastern United States, threatening massive destruction.
"Oil prices are well supported as dealers try to get a handle on Hurricane Florence potential impact" on crude supplies, noted Oanda analyst Dean Popplewell.
A drop in US crude stocks also added to upward pressure, with Brent briefly passing $80 per barrel.
Worries about the storm also pressured some leading US insurers, with Allstate, Travelers and Hartford Financial Services Group all declining.
Leading US carriers Delta Air Lines, United Continental and American Airlines all lost at least 1.5 percent.
Apple, which jumped Tuesday in anticipation of this year's product launches, dipped 1.2 percent after unveiling updated versions its priciest iPhones, along with a new smartwatch that allows users to take their own electrocardiograms.
Chinese automaker NIO, a would-be rival to California's electric car producer Tesla, surged 5.4 percent in its first session of trading in New York .
KEY FIGURES AROUND 2100 GMT (5 A.M. THURSDAY IN MANILA)
New York - Dow Jones: UP 0.1 percent at 25,998.92 (close)
New York - S&P 500: UP less than 0.1 percent at 2,888.92 (close)
New York - Nasdaq: DOWN 0.2 percent at 2,888.92 (close)
London - FTSE 100: UP 0.6 percent at 7,313.36 (close)
Frankfurt - DAX 30: UP 0.5 percent at 12,032.30 (close)
Paris - CAC 40: UP 0.9 percent at 5,332.13 (close)
EURO STOXX 50: UP 0.5 percent at 3,326.60 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 22,604.61 (close)
Hong Kong - Hang Seng: DOWN 0.3 percent at 26,345.04 (close)
Shanghai - Composite: DOWN 0.3 percent at 2,656.11 (close)
Euro/dollar: UP at $1.1629 from $1.1606 at 2100 GMT
Pound/dollar: UP at $1.3053 from $1.3033
Dollar/yen: DOWN at 111.25 yen from 111.63 yen
Oil - Brent Crude: UP 68 cents at $79.74 per barrel
Oil - West Texas Intermediate: UP $1.12 at $70.37 per barrel
source: news.abs-cbn.com
NEW YORK -- The benchmark S&P 500 stock index clinched its longest bull-market run on Friday, closing above its previous January high, as Federal Reserve Chairman Jerome Powell affirmed the US central bank's current pace of rate hikes.
The S&P had last reached a new closing high on Jan. 26, then retreated more than 10 percent, a correction that lasted until Feb. 8. Friday's new closing high confirmed that the index's bull run remained intact.
Speaking at a research symposium in Jackson Hole, Wyoming, Powell said the Fed's gradual interest rate hikes were the best way to protect the economic recovery, maintain strong job growth and keep inflation under control. His comments did little to change market expectations of a rate hike in September and perhaps again in December.
Investors said they were reassured that Powell's comments stayed in line with previous commentary from the Fed regarding policy. Economic data also boosted sentiment.
New orders for key US-made capital goods increased more than expected in July and shipments growth held firm, the Commerce Department said.
"That's what the markets wanted to hear," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. "The economic data and strong environment as a whole is the basis, and (Powell) didn't get in the way."
The Dow Jones Industrial Average rose 133.37 points, or 0.52 percent, to 25,790.35, the S&P 500 gained 17.71 points, or 0.62 percent, to 2,874.69 and the Nasdaq Composite added 67.52 points, or 0.86 percent, to 7,945.98.
For the week, the Dow added 0.47 percent, the S&P gained 0.87 percent, and the Nasdaq increased 1.66 percent.
The small-cap Russell 2000 index also advanced 0.5 percent to reach a new closing high.
A dip in the dollar after Powell's comments helped lift materials and energy stocks as the prices of oil and metals rose. The S&P 500 materials sector jumped 1.2 percent, the biggest percentage gain among the 11 major S&P sectors.
Netflix Inc shares rose 5.8 percent to add the most gains to the S&P 500 after SunTrust Robinson Humphrey upgraded its rating on the stock to "buy" and projected that third-quarter subscriber growth would match or beat Wall Street estimates.
Autodesk Inc shares leaped 15.3 percent, the greatest percentage gain among S&P 500 stocks, after the software maker's quarterly results beat estimates.
Shares of Gap Inc and Foot Locker Inc sank 8.6 percent and 9.2 percent, respectively, after the two retailers posted disappointing same-store sales.
Advancing issues outnumbered declining ones on the NYSE by a 2.50-to-1 ratio; on Nasdaq, a 1.76-to-1 ratio favored advancers.
The S&P 500 posted 36 new 52-week highs and four new lows; the Nasdaq Composite recorded 150 new highs and 31 new lows.
Volume on US exchanges was 5.43 billion shares, compared to the 6.28 billion average over the last 20 trading days.
source: news.abs-cbn.com
NEW YORK -- US stocks dropped on Thursday after earnings disappointed and trade jitters escalated over worries that the European Union could slap retaliatory tariffs on goods imported from the United States.
Officials from the EU Trade Commission, due in Washington next week for trade talks, are said to be preparing a list of tit-for-tat actions in response to proposed US tariffs on EU cars.
Automakers said tariffs on US cars and car parts could increase vehicle prices by $83 billion annually. Ford Motor Co and General Motors Co were down 0.5 percent and 1.4 percent, respectively.
On Wednesday, the Federal Reserve's Beige Book report showed manufacturers in all 12 districts of the US central bank are worried about the impact of the trade dispute.
"If this ends up being a protracted war, it's going to be bad news," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. "Unless this thing starts to show significant progress prior to the midterms, it's going to be a black mark, because the economy will start to slow down," he said, referring to congressional elections on Nov. 6.
Shares of eBay dropped 10.1 percent after a disappointing earnings report. The stock was among the biggest drags on the Nasdaq and the S&P 500.
American Express Co dipped 2.7 percent after the credit card company reported rising expenses due to increased spending on its rewards program.
The dollar index briefly hit a one-year high, reinforcing worries that the strong greenback could hurt results from US multinationals. But the dollar pared gains after President Donald Trump expressed concern about a strong currency.
The Dow Jones Industrial Average fell 134.79 points, or 0.53 percent, to 25,064.5, the S&P 500 lost 11.13 points, or 0.40 percent, to 2,804.49 and the Nasdaq Composite dropped 29.15 points, or 0.37 percent, to 7,825.30.
The second-quarter reporting period is gaining momentum, with results in so far from 69 companies in the S&P 500.
Earnings now are forecast to have risen 21.5 percent, compared with the 20.7 percent gain seen on July 1. Of the companies that have reported, 85.5 percent have surprised analyst estimates to the upside, according to Thomson Reuters data.
The financial sector saw the biggest percentage drop in the S&P 500, down 1.4 percent.
While all 3 major US stock indexes closed in negative territory, advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio. On Nasdaq, a 1.17-to-1 ratio favored advancers.
The US yield curve flattened close to levels not seen in 11 years on upbeat economic data, dragging on banks. JPMorgan, Bank of America and Citigroup were all down more than 1 percent.
Bank of New York Mellon fell 5.2 percent after saying the loss of two clients will continue to hurt results, while Travelers Cos was among the biggest drags on the Dow Jones, falling 3.7 percent following a profit miss attributed to US storm-related losses.
Among gainers, International Business Machines Corp stock was up 3.3 percent as new business helped the company top second-quarter Street estimates.
Comcast Corp rose 2.6 percent on news that the cable company had dropped its pursuit of Twenty-First Century Fox entertainment assets to focus on its bid for Sky Plc.
On the economic front, the US Labor Department reported that the number of Americans filing for unemployment benefits fell last week to the lowest in more than 48-1/2 years as the labor market continues to tighten.
The S&P 500 posted 24 new 52-week highs and three new lows; the Nasdaq Composite recorded 102 new highs and 38 new lows.
Volume on US exchanges was 6.29 billion shares, compared with the 6.46 billion-share average for the full session over the last 20 trading days.
source: news.abs-cbn.com
NEW YORK - The dollar tumbled Wednesday while US stocks dipped after the Federal Reserve lifted interest rates but suggested it would not speed up the pace of additional hikes in 2018.
The greenback's fall suggested disappointment in the foreign exchange market that the US central bank suggested it was on pace for just 3 rate hikes in 2018 and not 4.
Earlier, European equity markets finished little changed, while oil prices rallied on data showing a drop in US petroleum inventories.
The Fed, as expected, raised its key lending rate, citing the improved US growth and employment outlook.
Newly-installed Fed Chairman Jerome Powell pointed to factors that have boosted the economic outlook in recent months, including "more stimulative" fiscal policy, in the wake of the massive tax cuts Congress passed in December.
In addition, he said "ongoing job gains are boosting incomes and confidence (and) foreign growth is on a firm trajectory."
US stocks initially rallied on the Fed announcement.
But equities later pulled back during Powell's news conference in which he was asked repeatedly about risks to the economic outlook, including from a possible trade war between the US and China. Investors also fixated on the Fed's somewhat more aggressive plans for rate hikes after 2018, analysts said.
The Dow finished down 0.2 percent at 24,682.31 after rallying as high as 24,977.65 shortly after the Fed announcement.
DOLLAR FALLS
The dollar's trajectory was more decisive, falling after the Fed announcement and not moving significantly after that.
"While there were some aspects of today's announcement that were perhaps more hawkish than some expected, ultimately the currency market appeared to focus on the unchanged projection of a total of three rate hikes for 2018, which perhaps disappointed some who expected policymakers to signal a more aggressive near-term rate path," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
Earlier, European markets avoided major swings, with Frankfurt ending flat and London and Paris both down modestly.
Brent oil prices rose three percent to $69.47 per barrel after a US petroleum inventory report showed lower commercial inventories.
The data added to optimism about oil prices after a committee working for the Russia-OPEC group that has capped output on Tuesday said global supplies would balance with demand by the end of September, sooner than previous forecasts.
Petroleum-linked shares jumped, with Dow members Exxon Mobil and Chevron rising 1.4 percent and 2.2 percent respectively.
But packaged food companies stumbled after General Mills warned that steepening commodity costs would dent profits. General Mills tumbled 8.9 percent while Kellogg dropped 4.0 percent, Campbell Soup 2.2 percent and Mondelez International 0.8 percent.
Tesla Motors gained 1.9 percent after shareholders approved a pay package worth potentially billions of dollars for chief executive Elon Musk if the company meets its targets for operations and market capitalization.
KEY FIGURES AROUND 5 A.M.
New York - Dow: DOWN 0.2 percent at 24,682.31 (close)
New York - S&P 500: DOWN 0.2 percent at 2,711.93 (close)
New York - Nasdaq: DOWN 0.3 percent at 7,345.28 (close)
London - FTSE 100: DOWN 0.3 percent at 7,038.97 (close)
Frankfurt - DAX 30: FLAT at 12,309.15 (close)
Paris - CAC 40: DOWN 0.2 percent at 5,239.74, (close)
EURO STOXX 50: DOWN 0.3 percent at 3,401.04 (close)
Hong Kong - Hang Seng: DOWN 0.4 percent at 31,414.52 (close)
Tokyo - Nikkei 225: Closed for public holiday
Euro/dollar: UP at $1.2343 from $1.2242 at 2100 GMT Tuesday
Pound/dollar: UP at $1.4148 from $1.3998
Dollar/yen: DOWN at 105.95 yen from 106.53 yen
Oil - Brent North Sea: UP $2.05 at $69.47 per barrel
Oil - West Texas Intermediate: UP $1.63 at $65.17
source: news.abs-cbn.com
SAN FRANCISCO - Outsized returns delivered by Amazon.com, Netflix and other heavyweight technology stocks have made them heroes on Wall Street, but some strategists warn that investors' reliance on them exacerbates the risk of a steep downturn.
Amazon's 35 percent surge in 2018 has pushed its market capitalization up to $770 billion, equivalent to 3 percent of the S&P 500 and close behind Apple's nearly 4 percent share of the index.
Apple, Facebook, Amazon, Netflix and Google-parent Alphabet have grown their collective market value by more than 40 percent in the past year to $3 trillion, and they now account for a quarter of the Nasdaq Composite Index.
Technology stocks have been widely viewed in recent months as a "crowded trade," a situation where most investors have the same opinion, increasing the potential for a volatile selloff if sentiment changes.
"It's a big momentum trade, investors don't care if they're paying 15 or 20 or even 50 times earnings," said Mike O'Rourke, Chief Market Strategist at JonesTrading. "The problem is, once those names start giving up those gains, then the market starts to have problems."
Investors have been attracted to those stocks for good reason: Amazon's revenue ballooned 31 percent to $178 billion last year, while Netflix is expected by analysts on average to more than double its net income to $1.2 billion in 2018.
An expected interest rate hike by the US Federal Reserve on Wednesday may not have a strong effect on technology companies, which generally rely less than other kinds of companies on debt.
The S&P 500 information technology index dipped by an average of 0.3 percent in the five-session period following the Fed's four most recent rate hikes, in line with S&P 500, according to Thomson Reuters data.
Investors nervous about how much longer a nine-year bull market can last have favored big tech names as among the most reliable on the stock market because their business models are often viewed as disruptive and less susceptible to economic downturns, at least over the long run.
The popularity of Amazon, which is pushing beyond online retail and cloud computing into supermarkets and even healthcare, has left it trading at 167 times expected earnings, up from around 100 a year ago, according to Thomson Reuters Datastream. By comparison, the S&P 500 is trading at about 17 times expected earnings.
"If you ask anyone right now, if it's a business owner they'll say they're afraid of Amazon. If they're an investor, they'll tell you Amazon is going up forever," said Andrew Bodner, president of Double Diamond Investment Group in Parsippany, New Jersey.
"Overall, it creates more volatility for the market because everyone owns Amazon, and if Amazon goes down you'll see that reflected," Bodner said.
Investors' increased reliance on passively managed index funds has also contributed to the rally in technology shares because the companies' inclusion in the S&P 500 and other indexes means money will be poured into them even if they have expensive earnings multiples, O'Rourke said.
Momentum for some major technology stocks is already showing signs of moderation. Facebook has fallen 5 percent after hitting a record high at the start of February, with some investors worried that people are spending less time on the social media platform.
Posing a potential threat to the rally, the S&P 500 technology index is trading at a relatively expensive 18.8 times expected earnings, 12 percent above its 15-year average, according to Thomson Reuters Datastream.
While S&P 500 information technology earnings per share are expected to grow by a healthy 17.5 percent this year, that's less than last year's 20.8 percent surge and lower than the 19.5 percent earnings expansion expected for the entire S&P 500, according to Thomson Reuters I/B/E/S.
Technology companies may be benefiting more modestly than others from corporate tax cuts enacted this year, according to CFRA investment strategist Lindsey Bell.
Even as the S&P 500 wavered over worries that President Donald Trump might spark a trade war, the Nasdaq on Monday closed at a record high, more than bouncing back from a deep selloff across Wall Street only a month ago.
"People are going with what works, and if tech was working before the shakeout in February, then they're going to stay in it," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
source: news.abs-cbn.com
NEW YORK - Wall Street stocks finished in mixed fashion Monday, with the Nasdaq pushing to a fresh record but the Dow and S&P 500 both falling on revived fears of a trade war.
Analysts pointed to sharpening rhetoric among different parties as a factor, with US stocks weakening after a solid open.
European Trade Commissioner Cecilia Malmstroem said the trading bloc would "stand up to bullies" after US President Donald Trump threatened to tax German cars if the European Union did not lower barriers to US products.
Trump provoked the Europeans still further in a tweet on Monday morning saying US Commerce Secretary Wilbur Ross would speak with the EU side "about eliminating the large tariffs and barriers they use against the USA."
"Now, when we start to hear about possible retaliation, it becomes a concern again," Art Hogan, chief market strategist at Wunderlich Securities, told AFP.
"It's back to fear of a policy mistake on trading turning into a trade war."
The trade war worries cut into some of the optimism following Friday's strong US jobs report and over the announcement of a surprise summit between Trump and North Korean leader Kim Jong Un.
The Nasdaq finished up 0.4 percent at a second straight record, but both the Dow and S&P 500 ended lower.
Stocks were mixed elsewhere, with London and Paris little changed, but Frankfurt adding 0.6 percent after energy giant E.ON announced plans to take over Innogy, the renewables subsidiary of competitor RWE, in a deal valued at around 20 billion euros.
The deal fueled a rally of shares in the companies involved, with E.ON shares up by more than four percent in closing trade, and RWE stock just over nine percent higher.
Equity markets in Tokyo and Hong Kong both jumped nearly two percent following Friday's US jobs report.
The closely watched monthly report showed stronger-than-expected US jobs growth in February and moderating wage growth compared with the January report, mitigating concerns the Federal Reserve could speed its pace of interest rate hikes.
"The best of both worlds for equity markets, with the economy in full swing but nary a sign of wage inflation," said Stephen Innes, head of Asia-Pacific trade at OANDA.
However, analysts cautioned that the Fed could reemerge as a worry this week if key US data releases show big increases in inflation.
KEY FIGURES AROUND 2040 (4:40 a.m. Tuesday in Manila)
New York - Dow: DOWN 0.6 percent at 25,178.61 (close)
New York - S&P 500: DOWN 0.1 percent at 2,783.02 (close)
New York - Nasdaq: UP 0.4 percent at 7,588.32 (close)
London - FTSE 100: DOWN 0.1 percent at 7,214.76 points (close)
Frankfurt - DAX 30: UP 0.6 percent at 12,418.39 (close)
Paris - CAC 40: FLAT at 5,276.71 (close)
EURO STOXX 50: UP 0.3 percent at 3,429.48 (close)
Tokyo - Nikkei 225: UP 1.7 percent at 21,824.03 (close)
Hong Kong - Hang Seng: UP 1.9 percent at 31,594.33 (close)
Euro/dollar: UP at $1.2335 from $1.2307 at 2200 GMT
Pound/dollar: UP at $1.3905 from $1.3850
Dollar/yen: DOWN at 106.40 yen from 106.82 yen
Oil - Brent North Sea: DOWN 54 cents at $64.95 per barrel
Oil - West Texas Intermediate: DOWN 68 cents at $61.36 per barrel
source: news.abs-cbn.com
NEW YORK - World stock markets pushed higher Thursday as investors continued to regain confidence after worries about inflation led to brutal selling earlier in the month.
US indices closed higher for the fifth straight session, with the S&P 500 gaining 1.2 percent as Wall Street continued to reverse a six-day stretch that sent major indices down more than 10 percent, which is considered correction territory.
"The correction has seemed to end quickly," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
Gains were more muted in Europe, although Paris mustered a 1.1 percent advance after strong Airbus earnings sent the aerospace giant up 8.5 percent.
In Asia, Hong Kong ended 2 percent higher as traders headed into the Chinese New Year break. The index has risen 5.6 percent over the past three days, helping it bite into last week's drop of more than nine percent.
Tokyo finished 1.5 percent higher, despite a surge in the yen against the dollar, which tends to hurt exporters.
The global pullback early this month was ignited after the January US jobs report showed strong wage gains, which raised worries the Federal Reserve would accelerate interest rate hikes in response to increased inflation.
But the market appears to have pivoted and dismissed this worry, at least for now.
The US Producer Price Index rose 0.4 percent in January, matching analyst expectations, according to the Labor Department report released prior to the New York market open.
Patrick O'Hare of Briefing.com said inflation fears subsided after spooking investors at the start of the month.
"There was an acceptance of the idea that a pickup in inflation is a reflection of a growing economy, which is good for earnings growth," he wrote.
However, O'Hare cautioned that inflation fears were not dead, just "in a hibernation stage."
Some analysts expect another wave of volatility before long.
"We think that equities will come under fire again before long," said Oliver Jones, analyst at Capital Economics.
KEY FIGURES AROUND 1635 GMT (12:35 a.m. Friday in Manila)
New York - DOW: UP 1.2 percent at 25,200.37 (close)
New York - S&P 500: UP 1.2 percent at 2,731.20 (close)
New York - Nasdaq: UP 1.6 percent at 7,256.43 (close)
London - FTSE 100: UP 0.3 percent at 7,234.81 points (close)
Frankfurt - DAX 30: UP 0.1 percent at 12,346.17 (close)
Paris - CAC 40: UP 1.1 percent at 5,222.52 (close)
EURO STOXX 50: UP 0.6 percent at 3,389.63
Tokyo - Nikkei 225: UP 1.5 percent at 21,464.98 (close)
Hong Kong - Hang Seng: UP 2.0 percent at 31,115.43 (close)
Shanghai - Composite: Closed for a public holiday
Euro/dollar: UP at $1.2500 from $1.2451 at 2140 GMT
Pound/dollar: UP at $1.4094 from $1.3998
Dollar/yen: DOWN at 106.14 yen from 107.03 yen
Oil - West Texas Intermediate: UP 74 cents at $61.34 per barrel
Oil - Brent North Sea: DOWN 3 cents at $64.33 per barrel
source: news.abs-cbn.com
NEW YORK - Most stock markets around the world pushed higher Tuesday on investor relief over the end of the US government shutdown, dealers said.
Leading bourses in Asia climbed more than 1 percent, while the S&P 500 and Nasdaq finished at records for the third straight day.
"A resolution to the US government shutdown has helped boost Asian and European indices," said IG analyst Joshua Mahony.
"However, with a short-term solution in place, we will be back in the same position in weeks."
Democrats on Monday agreed to a Republican deal that brought an end to the three-day federal shutdown -- the first since 2013 -- and keeps the government running until February 8.
Wall Street hit new records Monday and continued to push higher in trading on Tuesday, led by Netflix, which climbed more than 10 percent thanks to postivie results.
That was the latest of the upbeat earnings reports following US tax reform, with many companies pointing to higher profits under the lower tax rate.
"What we're really seeing is confidence build from companies and from consumers," said Maris Ogg of Tower Bridge Associates.
PULLBACK AHEAD?
Most major European bourses gained ground after Asia extended a new year rally on continued optimism about the upcoming earnings season.
Frankfurt's DAX 30 struck a record high after a key survey showed surging German investor confidence in January.
The ZEW institute's monthly index of financial players' economic expectations added 3.0 points to 20.4, a much sharper gain than the 0.5-point increase forecast by analysts.
Equity markets remain upbeat, brokers say, despite having surged in recent weeks on the back of a robust global economy and increased optimism following US tax reform.
Some investors are eyeing a pullback in stocks for a market that is "overbought on a short-term basis," said Briefing.com analyst Patrick O'Hare, but he added that there is reason to question that outcome.
"A consolidation phase wouldn't surprise anybody, yet the staying factor for many in the market already is that a lot of sidelined participants are hoping for a pullback to put money to work," he said.
Sentiment also was bolstered by a report from the International Monetary Fund raising its world growth outlook and predicting at least a short-term boost from the US tax reform.
The improved IMF outlook also gave a boost to oil prices, with analysts expecting stronger growth to boost petroleum demand.
KEY FIGURES AT AROUND 2130 GMT (5:30 A.M. WEDNESDAY IN MANILA)
New York - DOW: DOWN less than 0.1 percent at 26,210.81 (close)
New York - S&P 500: UP 0.2 percent at 2,839.13 (close)
New York - Nasdaq: UP 0.7 percent at 7,460.29 (close)
London - FTSE 100: UP 0.2 percent at 7,731.83 points (close)
Frankfurt - DAX 30: UP 0.7 percent at 13,559.60 (close)
Paris - CAC 40: DOWN 0.1 percent at 5,535.26 (close)
EURO STOXX 50: UP 0.1 percent at 3,669.88
Tokyo - Nikkei 225: UP 1.3 percent at 24,124.15 (close)
Hong Kong - Hang Seng: UP 1.7 percent at 32,930.70 (close)
Shanghai - Composite: UP 1.3 percent at 3,546.50 (close)
Euro/dollar: UP at $1.2300 from $1.2263 at 2200 GMT
Pound/dollar: UP at $1.4001 from $1.3987
Dollar/yen: DOWN at 110.32 yen from 110.92 yen
Oil - Brent North Sea: UP 93 cents at $69.96 per barrel
Oil - West Texas Intermediate: UP 90 cents at $64.47 per barrel
source: news.abs-cbn.com
NEW YORK - Wall Street shot past a fresh set of a milestones on Wednesday as irrepressible investor appetite returned US stocks to their steady stream of record finishes.
Across the Atlantic, however, European equities churned lower as market players took their cue from downbeat sentiment in Asia.
Virtual currency bitcoin took a dive, falling below $10,000 for the first time in six weeks in what one analyst called a "cryptocalypse" as several digital currencies took a hammering. But bitcoin pared some of its losses in late US trading, to move back above $11,000.
In New York, all three major indices set records, with the blue-chip Dow Jones Industrial Average ending above 26,000 points for the first time, just eight trading sessions after breaking through the 25,000-point barrier.
Maris Ogg of Tower Bridge Associates told AFP the sustained New York rally was boosted by a "confluence of good news," including strong company earnings, slashed corporate tax rates, higher worker compensation and new investment.
"This is a boost for productivity," and gave market players greater confidence, she said.
Aviation giant Boeing led the Dow higher on plans for a joint venture while rising oil prices helped lift energy stocks.
But in London, stocks fell "as traders opt to lock in profits following the latest rally," noted Russ Mould, investment director at online stockbroker AJ Bell.
Adding to the gloom, disappointing earnings eclipsed takeover activity in the British capital.
Publisher and conference organizer Informa revealed it was in talks to buy rival UBM to create a giant worth more than £9.0 billion ($12.4 billion, 10.1 billion euros).
The deal is aimed at accelerating growth and slashing costs, the companies said in a statement. But investors were unconvinced, sending Informa shares tumbling.
The FTSE 100 was also punished as poor results from luxury fashion giant Burberry and publisher Pearson sent the two companies' share prices diving.
TOUGH TIMES FOR BITCOIN
Bitcoin fell below $10,000 for the first time since early December, following on Tuesday's 15 percent slump.
The leading cryptocurrency is down from record highs approaching $20,000 in the week before Christmas, having rocketed 25-fold over the year before being hit by concerns about a bubble and worries about crackdowns on trading in it.
"It's been a Cryptocalypse overnight with BTC (bitcoin) and other virtual currencies coming under heavy selling pressure," said Greg McKenna, chief market strategist at AxiTrader.
But Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers, sounded a slightly positive note: "Not all hope is lost. The cryptocurrency market is privy to these wild swings and seasoned veterans in this space have seen this happen many times previously."
In Asia, most markets fell into the red with energy firms rocked by lower oil prices earlier in the week.
But Hong Kong stocks hit an all-time high to break a record that had been in place for more than 10 years.
KEY FIGURES AROUND 2200 GMT (6 a.m. Thursday in Manila)
New York - DOW: UP 1.3 percent at 26,115.65 (close)
New York - S&P 500: UP 0.9 percent at 2,802.56 (close)
New York - Nasdaq: UP 1.0 percent at 7,298.28 (close)
London - FTSE 100: DOWN 0.4 percent at 7,725.43 points (close)
Frankfurt - DAX 30: DOWN 0.5 percent at 13,183.96 (close)
Paris - CAC 40: DOWN 0.4 percent at 5,493.99 (close)
EURO STOXX 50: DOWN 0.3 percent at 3,612.78 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 23,868.34 (close)
Hong Kong - Hang Seng: UP 0.3 percent at 31,983.41 (close)
Shanghai - Composite: UP 0.2 percent at 3,444.67 (close)
Euro/dollar: DOWN at $1.2198 from $1.2259
Pound/dollar: UP at $1.3833 from $1.3794
Dollar/yen: UP at 111.26 yen from 110.53 yen
Oil - Brent North Sea: UP 23 cents at $69.38 per barrel
Oil - West Texas Intermediate: UP 24 cents at $63.97
source: news.abs-cbn.com
The Dow Jones Industrial Average raced past the 26,000 mark for the first time on Tuesday as fourth-quarter earnings season got off to a strong start following upbeat results from UnitedHealth and Citigroup.
The blue-chip index, however, eased from its peak as a pullback in oil prices weighed on energy stocks.
UnitedHealth rose 2.5 percent after the largest U.S. health insurer reported results that beat estimates and raised its 2018 earnings outlook.
Citigroup Inc rose 1.13 percent after the lender reported a profit that topped expectations as strength in consumer businesses made up for lower revenue from bond and currency trading.
Hopes of strong earnings, supported by a steep cut in corporate taxes, and solid global economic growth have bolstered Wall Street's optimism in the start to 2018.
"There is really nothing in (the market's) way at this point," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"Investors are liking the fact that companies are talking up earnings, more than they have done in the past. We're going to see better earnings over the next 12 months and you need to buy stocks now to take advantage of that."
More than three quarters of the 30 S&P 500 companies that have reported so far have topped profit estimates, according to Thomson Reuters I/B/E/S.
At 12:31 p.m. ET (1731 GMT), the Dow Jones Industrial Average was up 152.72 points, or 0.59 percent, at 25,955.91. If the index closes above 26,000, it would be the fastest 1,000-point gain ever.
UnitedHealth, Merck and Goldman Sachs were the top boosts to the Dow.
The S&P 500 was up 6.52 points, or 0.23 percent, at 2,792.76 and the Nasdaq Composite was up 18.21 points, or 0.25 percent, at 7,279.27.
The CBOE Volatility index, a widely followed measure of market anxiety, rose to a more than 1 month high at 11.27.
Six of the 11 major S&P sectors were higher, led by a 1.31 percent rise in the real estate index and a 0.81 percent gain in the healthcare index.
Merck surged more than 7 percent after early results from a key study showed its blockbuster drug Keytruda and two chemotherapy medicines helped lung cancer patients live longer and stopped the disease from advancing.
The S&P energy index fell 0.65 percent as Brent crude oil shed some of its recent gains, falling nearly $1 per barrel.
General Motors rose 2 percent after the company said it expected earnings in 2018 to be largely flat, compared with 2017, but that profits should pick up pace in 2019.
General Electric fell about 4 percent after raising the prospect of breaking itself up and announced more than $11 billion in charges from its long-term care insurance portfolio and new U.S. tax laws.
Viacom fell 5.4 percent after sources told Reuters CBS Corp and the company were not in active merger discussions.
Advancing issues outnumbered decliners on the NYSE by 1,555 to 1,350. On the Nasdaq, 1,488 issues rose and 1,448 fell.
source: news.abs-cbn.com
Wall Street closed at record highs on Thursday as rising oil prices lifted energy stocks and investors bet on a strong US corporate earnings season.
The S&P energy sector closed up 2 percent as Brent crude went above $70 a barrel for the first time since December 2014, boosted by a surprise drop in US production and lower crude inventories.
The consumer discretionary sector saw strong gains in media and retail stocks, while the industrials index was helped by airlines after news from No. 2 US carrier Delta Air Lines.
"The unifying factor of today's move and this whole week is a heightened confidence in the pace of economic activity. That helps explain the demand picture, which has oil up at $70," said Scott Clemons, chief investment strategist at Brown Brothers Harriman in New York.
The Dow Jones Industrial Average rose 205.6 points, or 0.81 percent, to 25,574.73, the S&P 500 gained 19.33 points, or 0.70 percent, to 2,767.56 and the Nasdaq Composite added 58.21 points, or 0.81 percent, to 7,211.78.
Wall Street had dropped on Wednesday, the first daily decline for S&P and Nasdaq in 2018, after a report China would slow US government bond purchases and a report that US President Donald Trump would end a key trade agreement.
The major indexes pared gains briefly in late afternoon trading on Thursday after New York Fed President William Dudley said tax cuts could lead to economic overheating. He predicted above-trend GDP growth with rising inflation in 2018.
"Dudley is touching on something that investors should fear," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "The only threat to the stock market right now is high interest rates. If rates are higher, the present value of equities are too high."
Investors are betting on bullish quarterly earnings reports from big companies and details on savings from federal tax cuts. The reporting season kicks off in earnest on Friday, with results from the big US banks JPMorgan Chase & Co and Wells Fargo & Co.
Earnings for S&P 500 companies are expected to have increased by 11.8 percent in the recently-ended quarter, with the biggest gain from the energy sector, according to Thomson Reuters I/B/E/S.
"This market feels this week like a deep breath before the onslaught of earnings reports," Clemons said. "This is a wait-and-see mode with a healthy amount of optimism."
Delta Air Lines shares closed up 4.8 percent at $58.52 after it predicted a double benefit from the US corporate tax cut - savings on its own bill and an uptick in business travel as companies to spend tax savings. It also reported an upbeat quarterly profit.
Delta helped the Dow Jones US Airlines index close up 4.2 percent. The Dow Jones Transport index rose 2.3 percent - its biggest one-day percentage gain since Nov. 29.
Advancing issues outnumbered declining ones on the NYSE by a 3.40-to-1 ratio; on Nasdaq, a 3.18-to-1 ratio favored advancers.
The S&P 500 posted 107 new 52-week highs and 8 new lows; the Nasdaq Composite recorded 176 new highs and 18 new lows.
On U.S. exchanges 6.74 billion shares changed hands, above the 6.39 billion average for the last 20 trading days.
source: news.abs-cbn.com
NEW YORK - Value stocks are getting a once-over from some US growth fund managers in early 2018 as they prowl for overlooked shares they think have more upside in a market that gained nearly 20 percent last year.
Value stocks, so labeled because they typically sport lower price-to-earnings valuations, tend to be in more staid or out-of-favor industries and often lag during outsized stock rallies, which is exactly what happened in 2017.
The S&P 500 Value index - a measure of companies such as Berkshire Hathaway Inc and JP Morgan Chase & Co - gained just 12.6 percent last year. That is a tortoise's pace measured against the far more hare-like S&P 500 Growth index, which doubled that performance. It clocked a 25.4-percent rise courtesy of its heavy contingent of tech giants like Apple Inc and Microsoft Corp.
As a result, even some growth funds are moving out of high-flying technology stocks and increasing their positions in stocks they see as more reasonably valued at a time when the American Association of Individual Investors survey shows the greatest exuberance for stocks since November 2014.
"There is some risk to the technology sector after the big run we've had. Where we see opportunities now are sectors that have attractive valuations and higher visibility into their revenue streams," said Matthew Litfin, a co-portfolio manager of the $4.7-billion Columbia Acorn fund.
Litfin is now underweight technology and has been adding to its holdings of financial stocks, such as asset management Lazard Ltd, which trades at a trailing price to earnings ratio of 15.1 versus 23.7 for the S&P 500 as a whole. Lazard shares are up 5.8 percent so far in 2018.
Thyra Zerhusen, a co-portfolio manager of the $4.2 billion Fairepoint Capital Mid Cap fund, said she has been moving into the likes of toymaker Mattel Inc and General Electric Co, whose corporate upheavals overshadow the value of their underlying assets.
GE, for instance, trades at a trailing P/E of 21.2, and its shares are down 41.7 percent over the last year as new chief executive John Flannery has announced plans to shrink the company and exit some of its sprawling business lines. Shares of Mattel, meanwhile, slid 46 percent over the last 12 months as it suspended its dividend and cited the bankruptcy of Toys "R" Us, the biggest US toy retailer, as a factor in its weak sales.
"Last year was not a good environment for value, but now is a time when you can find investments that will go up substantially over the next two years," she said.
So far so good: Mattel is up 4.3 percent since the new year rang in, and GE is up 6.1 percent. The S&P is up about 2.3 percent.
NO GUARANTEES
A good year for growth stocks does not necessarily mean that value stocks will bounce back the following year, of course.
In the 20 previous occasions that the S&P 500 jumped by more than 18 percent in one year since 1951, the index rose by an additional 10 percent or more the following year 10 times, according to Credit Suisse, with growth stocks leading the way. The other 10 times the S&P on average declined 1.7 percent the next year.
Over the first three trading days of 2018, the iShares S&P 500 Growth index ETF is up 2.9 percent, while the iShares S&P 500 Value index ETF is up 1.6 percent.
Yet Matthew Watson, a portfolio manager at James Advantage funds, said that his firm has been bracing for a significant correction in the so-called FAANG group of large tech stocks, such as Amazon.com Inc and Google-parent Alphabet Inc that jumped by 30 percent or more in 2017 and pulled the broad index higher.
Instead, the firm has been adding to positions in out-of-favor energy stocks such as Diamond Offshore Drilling Inc and retailers such as Macy's Inc that have under-appreciated assets, he said.
Macy's, for instance, is trading barely above the value of its underlying real estate portfolio, Watson said, while Diamond Offshore trades at 70 percent of its book value, a measure of the value of the assets on a company's balance sheet. Macy's is down 3.3 percent in the first week of 2018, while Diamond Offshore is up 2.1 percent.
"There may be positive momentum in the stock market right now, but that is only going to make it more expensive," Watson said. "We think that the only choice you have now to find opportunities that will pay off in the long-run is to look for value."
source: news.abs-cbn.com
NEW YORK - Global stock markets edged lower on Tuesday, while US Treasury yields rose, as Republican legislation with steep cuts to corporate taxes cleared the House of Representatives and headed towards a final vote in the Senate.
US stocks hit successive highs ahead of the tax overhaul bill, but modest selling has crept into the market as most traders see the positive impact of the bill as already priced in.
"I really think it might be: buy the rumor, sell the news," said Jim Paulsen, chief investment strategist with the Leuthold Group in Minneapolis. "Wall Street has had long enough to vet this thing."
The Dow Jones Industrial Average fell 37.45 points, or 0.15 percent, to end at 24,754.75, the S&P 500 lost 8.69 points, or 0.32 percent, to 2,681.47 and the Nasdaq Composite dropped 30.91 points, or 0.44 percent, to 6,963.85.
The pan-European FTSEurofirst 300 index lost 0.51 percent and MSCI's gauge of stocks across the globe shed 0.30 percent.
The US House of Representatives approved the tax bill by a vote of 227-203. A Senate decision could come Tuesday night on what would be the biggest US tax overhaul in more than 30 years. However, the US Senate parliamentarian has ruled against three provision of the Republican tax bill, forcing the House of Representatives to hold a second vote on the legislation, Senator Bernie Sanders said.
President Donald Trump is expected to sign the bill into law by the end of the week if it is passed by the Senate.
The plan includes slashing the corporate tax rate to 21 percent from 35 percent, which analysts say would likely increase profits, buybacks and dividend payouts.
A slump in technology stocks, led by Apple Inc, also helped drag markets down in afternoon trading.
Apple shares fell more than 1 percent after broker Instinet downgraded the stock to "neutral" from "buy" on doubts about iPhone X sales.
US Treasury yields rose with the benchmark yield hitting a 7-week high as the tax bill pushed forward.
Before the House vote, bonds were selling in reaction to data that showed US domestic home construction rose to a 13-month peak in November, with single-family home construction hitting a 10-year high.
Now, bond investors could be pulling back on expectations of economic growth, said Jack Ablin, chief investment officer with BMO Private Bank in Chicago. "Some may be concerned the boost on the fiscal side can be offset by monetary tightening," Ablin said.
Benchmark 10-year US Treasury notes were last down 20/32 in price to yield 2.4644 percent, from 2.392 percent late Monday.
The 30-year bond was down 1-17/32 in price to yield 2.206 percent, from 2.744 percent.
The US dollar, which slipped on tax plan doubts on Monday, began to flatten on the unexpectedly strong housing data.
In late trading, the dollar rose 0.3 percent against the yen to 112.92 yen. It was little changed against the Swiss franc, but higher versus sterling as well as the Australian, Canadian and New Zealand dollars.
The dollar index, which fell 0.26 percent, was weaker against the euro, which was up 0.5 percent to $1.1840.
Gold, which dipped as US Treasury yields rose, is on track to post its narrowest trading range of any quarter in a decade in the last 3 months of the year.
Spot gold added 0.1 percent to $1,262.07 an ounce. US gold futures fell 0.02 percent to $1,265.20.
Oil rose slightly, aided by an ongoing North Sea pipeline outage, supply cuts and expectations that US crude inventories had fallen for a fifth week.
Brent crude was up 42 cents or 0.66 percent to $63.83 a barrel. US crude rose 47 cents or 0.8 percent to $57.69.
source: news.abs-cbn.com
