The Standard & Poor’s 500 index fell 7.85, or 0.4 percent, to 2,165.17. It surpassed its prior record set Wednesday by 0.09 percent, the latest nudge higher for a market that has taken a decidedly slow-and-steady path to all-time highs in recent weeks.
Advertisement
The MSCI world equity index, which tracks shares in 45 nations, rose 1.92 points or 0.47 per cent, to 412.75.
Global stocks have been on the rise in recent weeks, fueled by a series of data releases underlining the strength of the USA economy, corporate earnings and expectations of further central bank action following the Brexit vote.
Second-quarter earnings for S&P 500 companies are now expected to fall by 4.3 percent, less than the 4.5 percent decline estimated earlier, according to Thomson Reuters I/B/E/S. The stock was the biggest drag on the S&P and the Dow.
ALIGHTING: American Airlines climbed $1.30, or 3.7%, to $36.26 after reporting a milder drop in quarterly earnings than analysts expected.
ENERGIZED: Southwestern Energy jumped $1.22, or 9.2 per cent, to $14.43.
The S&P 500 posted 33 new 52-week highs and no new lows; the Nasdaq Composite recorded 91 new highs and 18 new lows.
AT&T was up 1.5 percent after its results.
“This is a case where the USA stock market is the only place to go”. A report showed U.S. jobless claims unexpectedly fell to a three-month low last week, while home resales unexpectedly rose in June to their fastest pace in more than nine years. The company reported stronger earnings than analysts expected, but it also lowered its forecast for full-year sales.
Railroad stocks showed a significant move to the downside on the day, dragging the Dow Jones Railroads Index down by 2.1 percent. The index regained some ground after moving notably lower over the three previous sessions. Verizon Communications Inc added 1.4 per cent as it’s said to be near a deal to buy Yahoo!
The recent record-setting rally, which has pushed the S&P 500 up more than 6 percent this year, has come despite concerns about global instability including Britain’s recent vote to leave the European Union. It was the biggest gain in the S&P 500. It was brought to my attention by a friend at Raymond James; Jeff Saut, their chief investment strategist, highlighted it on Tuesday morning, noting its origin is from the Investor’s Business Daily.
Thank you for reading and relying on TulsaWorld.com for your news and information. “I think it’s interesting; a half-a-percent move down feels like a 5% move”. Comments by the Bank of Japan governor ruling out “helicopter money” for the tepid economy also cast a chill.
USA equity markets have soared the last three weeks, shrugging off worries about the British vote to leave the European Union and well-fueled by central banks’ commitments to keep interest rates low. “The economic narrative remains the same; the economy isn’t growing fast but it’s growing fast enough to cause the labor market to tighten”. The European Central Bank left its interest-rates unchanged at today’s meeting, though President Mario Draghi may signal more stimulus to be deployed in September.
The Fed pulled rates off their record low in December but has held pat since then.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index inched up by 0.1 percent, the French CAC 40 Index edged down by 0.1 percent and the U.K.’s FTSE 100 Index fell by 0.4 percent. Japan’s Nikkei 225 index fell 1.1%, Hong Kong’s Hang Seng slid 0.2% and South Korea’s Kospi index lost 0.1%. Aetna stocks rose 1.6 per cent, Anthem 2.6 per cent, Humana 8.3 per cent, and Cigna 5.4 per cent.
Brent crude settled up 51 cents or 1.1 per cent, at $47.17 per barrel.
Precious metals traded lower on Wednesday.
Advertisement
CURRENCIES: The pound sank against the dollar on expectations for more stimulus from the Bank of England. It fell to $1.3102 from $1.3203.
