Royal Caribbean Cruises slid $2.37, or 3.2 percent, to $71.61, while Carnival lost 77 cents, or 1.7 percent, to $45.71. European bank stocks.SX7P gained, helped by an upgrade for shares of Barclays (BARC.L).
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“The dollar took a big boost from the jobs numbers. and there is a part of the market that expect that to follow through into retail sales on Friday”, said Citi strategist Richard Cochinos.
ON THE MEND: Valeant Pharmaceuticals surged 22.8 percent after the Canadian drugmaker stuck by its earnings outlook from earlier this year, despite reporting a wider second-quarter loss. USA crude for September was up 19 cents at US$43.21. The stock dropped $1.61 to $24.01. In fact, it is already; the same 10 companies cutting capex are also expected to produce 10 percent less oil this year compared to analyst estimates back in August 2014. Imports are now tracking at just shy of 3 million barrels per day this year, and as our ClipperData illustrate below, some 64 percent of these imports this year have come from one region, the Middle East, and from four countries: Saudi Arabia, Iraq, Kuwait and Qatar. The stock added $5.11 to $27.54.
ROUGH SEAS: Shares in two of the biggest cruise line operators were down.
OPEC MEETS: Amid little market-moving news, oil was in focus after the Organization of the Petroleum Exporting Countries announced Monday that oil ministers of the 14-nation organization will meet next month, well ahead of their previously scheduled November meeting.
But just because OPEC is holding an informal meeting, doesn’t mean the divided cartel will be able to agree on production caps, let alone production cuts.
Benchmark U.S. crude was up 39 cents, or 0.9 percent, to $43.41 per barrel in NY, adding to the $1.22 gains made on Monday. Brent crude, used to price worldwide oils, lost 53 cents at $44.86 per barrel in London. Germany’s DAX rose 0.8 percent to 10,516. Britain’s FTSE 100 added 0.6 percent.
Global stock markets rose Tuesday as slack Chinese consumer price figures stoked expectations of more stimulus policies.
KEEPING SCORE: Japan’s Nikkei 225 finished 0.7 percent higher at 16,764.97 and South Korea’s Kospi climbed 0.6 percent to 2,043.78. Hong Kong’s Hang Seng gained 1.6 percent, while the Shanghai Composite Index rose 0.9 percent.
STIMULUS SPECULATION: A measure of consumer price growth in China declined in July for the third month in a row and came in below the government’s inflation target. Stocks in Australia, Indonesia and Taiwan remained almost unchanged. The yield on the 10-year Treasury note rose to 1.61 percent from 1.59 late Friday.
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CURRENCIES: The dollar weakened to 102.19 yen from 102.36 yen while the euro was flat at $1.1086. Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5, traders said, even as analysts forecast a total US crude inventory drop of 1 million barrels.
