NYSE Dow Jones finished today at:

[bigdog]

Markets in Hong Kong and South Korea were closed Monday for national holidays.

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US Stocks Climb, Led by Health Care Companies and Banks
After a strong report on US manufacturing, companies linked to stronger economic growth, including banks, health care and industrial companies, lead stock indexes to new highs.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks set more records Monday as health care companies and banks continued to surge as investors grew more optimistic about the recovery in manufacturers.

Stocks got a boost after the Institute for Supply Management said U.S. factory activity hit a 13-year high in August as hurricanes disrupted supplies but drove up demand for manufactured goods. Investors snapped up shares of companies that are linked to more rapid economic growth, like banks and health care and industrial companies as well as smaller, U.S.-focused companies. High-dividend stocks, which are traditionally considered safer and more cautious investments, lagged the rest of the market. Energy companies missed out on the gains as investors worried that oil supplies are rising.

In the last few weeks, stocks have returned to the pattern they followed from the November presidential election to President Donald Trump's inauguration in January: growth-oriented stocks have risen while the dollar has gotten stronger and bond yields have increased.

"We've seen this acceleration in global earnings growth over the last couple of months," said Mark Hackett, chief of investment research at Nationwide Investment Management. "We've seen the rest of the world kind of pick up where the U.S. has been going."

Hackett added that investors in the U.S. seem to have gotten more optimistic that a tax cut package and an infrastructure spending bill could pass a bitterly-divided Congress. That would strengthen the U.S. economy and corporate earnings.

The Standard & Poor's 500 index rose 9.76 points, or 0.4 percent, to 2,529.12. The Dow Jones industrial average advanced 152.51 points, or 0.7 percent, to 22,557.60. The Nasdaq composite gained 20.76 points, or 0.3 percent, to 6,516.72. The Russell 2000 index of smaller-company stocks jumped 18.61 points, or 1.2 percent, to 1,509.47. All four indexes finished at record highs.


Leaders in health care included genetic testing equipment company Illumina, which gained $3.03, or 1.5 percent, to $202.23. Botox maker Allergan climbed $6.03, or 2.9 percent, to $210.98. Among industrials, General Electric jumped 39 cents, or 1.6 percent, to $24.57.

Oil prices dropped after oilfield services company Baker Hughes said last Friday that more drilling rigs went into operation last week after two weeks of declines, and Reuters reported that output of OPEC nations grew in September. Both of those reports suggest that oil supplies are rising.

Benchmark U.S. crude fell $1.09, or 2.1 percent, to $50.58 a barrel in New York. Brent crude, the standard for international oil prices, shed 67 cents, or 1.2 percent, to $56.12 a barrel in London.

Nordstrom slumped following a report that talks to sell the company to a group of investors including the Nordstrom family could fall apart. The New York Post reported that the would-be buyers are having trouble getting enough financing to complete the sale, and that the recent bankruptcy of retailer Toys R Us made that process harder.

Nordstrom stock fell $2.97, or 6.3 percent, to $44.18. Other department stores also fell on concerns about the value of the companies and their ability to raise money.

MGM Resorts stock fell after a man shot and killed at least 58 people and wounded more than 500 at a concert at MGM's Mandalay Bay Hotel and Casino in Las Vegas. It's the deadliest mass shootings in U.S. history. Police say the shooter was 64-year-old Stephen Paddock and that he shot and killed himself inside the hotel.


MGM Resorts lost $1.82, or 5.6 percent, to $30.77.

Gun manufacturers traded higher, as they often do following large shootings as investors wonder if the violence will lead to greater gun sales. Sturm, Ruger jumped $1.80, or 3.5 percent, to $53.50 and American Outdoor Brands, the parent of Smith & Wesson, rose 49 cents, or 3.2 percent, to $15.74.

The euro declined and Spanish stocks dropped as investors reviewed an independence vote and unrest in Catalonia. Officials in the region, which includes Barcelona and accounts for a large portion of Spain's economy, say an overwhelming majority of voters supported independence from Spain. The central government says the referendum is invalid and illegal.

Close to 900 people were injured in confrontations with police who were trying to shut down the voting, although most of the injuries were not serious. More than 30 police officers were also hurt.

The Spanish IBEX index dropped 1.2 percent.

The dollar rose to 112.65 yen from 112.51 yen. The euro fell to $1.1746 from $1.1816. That sent most European stock indexes higher, as it makes exports cheaper and boosts overseas company earnings. Germany's DAX advanced 0.6 percent and the CAC 40 of France rose 0.4 percent. The British FTSE 100 index added 0.9 percent.

In other energy trading, wholesale gasoline fell 4 cents to $1.56 a gallon. Heating oil slid 4 cents to $1.77 a gallon. Natural gas lost 9 cents to $2.92 per 1,000 cubic feet.

Bond prices were little changed. The yield on the 10-year Treasury note held steady at 2.34 percent.

Gold lost $9 to $1,275.80 an ounce. Silver fell 2 cents to $16.65 an ounce. Copper remained at $2.96 a pound.


Japan's benchmark Nikkei 225 index rose 0.2 percent. Markets in Hong Kong and South Korea were closed Monday for national holidays.

 

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Soaring Airline Stocks Help Lift Wall Street to New Heights
A liftoff for airline and automaker stocks helped U.S. indexes push a bit further into record territory on Tuesday.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Airline and automaker stocks took off on Tuesday and helped U.S. indexes push a bit further into record territory. Trading was again quiet overall, with only modest moves for bond yields, commodities and other markets.

The Standard & Poor's 500 index rose 5.46 points, or 0.2 percent, to 2,534.58 for its sixth straight day of gains. The Dow Jones industrial average rose 84.07, or 0.4 percent, to 22,641.67, and the Nasdaq composite rose 15.00 points, or 0.2 percent, to 6,531.71. The Russell 2000 index of small-cap stocks added 2.49, or 0.2 percent, to 1,511.97. All four indexes are at records.

Airlines led the way after Delta Air Lines updated its forecast for third-quarter results. The Atlanta-based carrier expects to report roughly 2 percent growth in a key revenue measurement, which would be at the high end of the forecast range it had given a month earlier, after accounting for the hit that it took from Hurricane Irma.

Delta jumped $3.18, or 6.6 percent, to $51.25 for its best day since January 2015. United Continental, American Airlines Group and Southwest Airlines also each rose more than 4 percent.

Outside of airlines and a handful of other big movers, though, markets were generally quiet. No big economic reports were on the docket, and few companies reported quarterly results.

"This is the calm before we get hit with some more impactful information," said Steve Chiavarone, portfolio manager at Federated Investors.

In upcoming weeks, the market will be looking to hear more about whether Washington will be able to cut tax rates for companies and others. Investors may also get clues about who the next chair of the Federal Reserve will be, and most companies will begin reporting their third-quarter results.


In the meantime, some economic reports may look abnormally weak because of the hurricanes that have recently struck the United States, such as this week's upcoming report on hiring. But investors are expecting to see temporarily weaker numbers, which would limit the impact, Chiavarone said.

General Motors and Ford Motor were some of the market's top performers after each reported strong U.S. sales growth for last month. It's a turnaround for automakers, which had seen sales drop across the industry through the year's first eight months.

GM climbed $1.30, or 3.1 percent, to $43.45, and Ford gained 25 cents, or 2.1 percent, to $12.34.

Homebuilder Lennar rose after it reported stronger quarterly sales and earnings than analysts expected. Interest rates remain relatively low, and the strengthening job market is helping to convince more people to buy homes. Lennar rose $2.53, or 4.8 percent, to $55.35.

Shares of Equifax and Wells Fargo both rose, even though representatives for the companies received tongue lashings on Capitol Hill.

Equifax climbed $2.64, or 2.4 percent, to $110.45 after House members grilled its former CEO over the data hack that exposed the personal information of 145 million Americans. Wells Fargo added 11 cents, or 0.2 percent, to $55.58 after a Senate committee questioned its CEO on the bank's sales-practice scandal, where employees had signed customers up for accounts without their knowledge.

The yield on the 10-year Treasury note fell to 2.32 percent from 2.34 percent late Monday. The two-year yield fell to 1.46 percent from 1.49 percent, and the 30-year yield dipped to 2.86 percent from 2.87 percent.


The dollar inched up to 112.90 Japanese yen from 112.65 yen late Monday. The euro rose to $1.1752 from $1.1746, and the British pound dipped to $1.3247 from $1.3286.

In overseas markets, France's CAC 40 rose 0.3 percent, and the FTSE 100 in London gained 0.4 percent. Japan's benchmark Nikkei 225 rose 1 percent to its highest closing level in two years, and Hong Kong's Hang Seng jumped 2.2 percent. Stock markets were closed in Germany, China and South Korea for holidays.

In the commodities market, gold slipped $1.20 to settle at $1,274.60 per ounce, silver was close to flat at $16.65 per ounce and copper rose 1 cent to $2.96 per pound.

Benchmark U.S. crude dipped 16 cents to settle at $50.42 per barrel. Brent crude, the standard for international oil prices, fell 12 cents to $56.00 per barrel. Natural gas fell 2 cents to $2.90 per 1,000 cubic feet, heating oil dropped 2 cents to $1.75 per gallon and wholesale gasoline rose a penny to $1.57 per gallon.

 

[bigdog]

https://www.usnews.com/news/busines...hares-rise-japan-falls-in-quiet-asian-trading

Wavering Stocks Inch a Bit Further Into Record Heights
A wavering stock market inched a bit further into record territory on Wednesday, and the Standard & Poor's 500 index was on track to book a seventh straight gain, barely.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks inched a bit further into record territory Wednesday after teeter-tottering through the day. The Standard & Poor's 500 index rose by just a sliver, but it was enough for a seventh straight gain.

The S&P 500 climbed 3.16 points, or 0.1 percent, to 2,537.74 after flipping between slight losses and gains through the day. The seven-day win streak is the index's longest since a similar run in May.

The Dow Jones industrial average rose 19.97 points, or 0.1 percent, to 22,661.64, and the Nasdaq composite picked up 2.91, or less than 0.1 percent, to 6,534.63. All three indexes added to records set a day earlier.

A report from payroll processor ADP said that hiring by private employers weakened sharply last month, a setback for an economy that had been enjoying a generally strengthening job market. But economists and investors were expecting a low number because of the damage done by hurricanes Harvey and Irma, which hopefully will be only temporary.

The government will release its more comprehensive jobs report on Friday, and economists are also forecasting a weaker number than a month earlier.

Other reports painted a more encouraging picture. One showed that the nation's services companies expanded last month at their fastest rate in more than a decade. The report from the Institute for Supply Management followed one on Monday that showed U.S. manufacturing is also growing strongly.

"Things continue to be very solid, and the economic numbers continue to be very strong not only here but throughout the world, which is what's driving this," said Kirk Hartman, global chief investment officer for Wells Fargo Asset Management.

Mylan surged to the biggest gain in the S&P 500 after federal regulators approved its generic version of Teva's Copaxone drug for multiple sclerosis. Mylan jumped $5.27, or 16.2 percent, to $37.80.


Utility stocks were also strong, and such stocks in the S&P 500 jumped 1.1 percent.

On the losing end was Office Depot, which plunged after it announced a $1 billion purchase of an IT services and products provider, while cutting its forecast for operating profit this year. Its stock fell 81 cents, or 17.6 percent, to $3.78.

Bond insurers were also weak after President Donald Trump suggested in an interview with Fox News that the federal government may "wipe out" Puerto Rico's debt following its struggle to recover from Hurricane Maria.

MBIA fell 73 cents, or 8.4 percent, to $7.95, Ambac Financial Group lost 98 cents, or 5.5 percent, to $16.70 and Assured Guaranty dropped $1.11, or 2.9 percent, to $37.58.

In the bond market, Treasury yields held relatively steady even as speculation rose about who the next chair of the Federal Reserve will be after Janet Yellen's term ends in February. President Trump has said previously that he may consider Yellen for another term, but other names have been floated in media reports including Kevin Warsh, a former Fed board member.

Under Yellen and her predecessor, Ben Bernanke, the Federal Reserve has unleashed unprecedented amounts of stimulus for the economy in hopes of recovering from the Great Recession. The central bank is now slowly pulling back the aid, and investors wonder if the next Fed chair may be more aggressive about it, or "hawkish," as Wall Street traders call it.

"I think it's reasonable to expect that the next Fed will be more hawkish," Hartman said. "To be fair, the Fed itself has signaled that it wants to be more hawkish. I am not a big believer that, in the near term, whoever gets the nod is going to do anything dramatic."


The yield on the 10-year Treasury edged down to 2.32 percent from 2.33 percent late Tuesday, while the two-year yield dipped to 1.47 percent from 1.48 percent.

Benchmark U.S. crude fell 44 cents to settle at $49.98 per barrel, while Brent crude, the standard for international oil prices, fell 20 cents to $55.80 per barrel.

Natural gas rose 5 cents to settle at $2.94 per 1,000 cubic feet, heating oil rose 2 cents to $1.77 a gallon and wholesale gasoline rose 2 cents to $1.58 per gallon.

Gold rose $2.20 to settle at $1,276.80, silver fell 3 cents to $16.62 per ounce and copper was close to flat at $2.96 per pound.

The dollar rose to 112.98 Japanese yen from 112.90 yen late Tuesday. The euro rose to $1.1764 from $1.1752, and the British pound inched up to $1.3250 from $1.3247.

In overseas markets, France's CAC 40 fell 0.1 percent, Germany's DAX gained 0.5 percent and the FTSE 100 in London was close to flat. Japan's Nikkei 225 added 0.1 percent, and the Hang Seng in Hong Kong climbed 0.7 percent.

 

[bigdog]

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Stocks Rise; S&P 500 Matches Longest Winning Run in 4 Years
Yet another gain for the stock market on Thursday sent the Standard & Poor's 500 index higher for an eighth straight day, tying its longest streak since 2013.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — The last time the stock market had this long a winning streak, Twitter shares weren't even a part of it yet.

Yet another gain for stocks on Thursday sent the Standard & Poor's 500 index higher for an eighth straight day, its longest winning streak since July 2013, which was months before Twitter shares started trading publicly. It's the latest step higher for a market that's methodically climbed to record after record for much of this year as both the economy and corporate profits have improved.

The S&P 500 rose 14.33 points, or 0.6 percent, to 2,552.07. The Dow Jones industrial average gained 113.75, or 0.5 percent, to 22,775.39 and the Nasdaq composite rose 50.73, or 0.8 percent, to 6,585.36. All three indexes added to their records set a day earlier, again.

All those moves higher actually have some professional investors a bit nervous, because even the healthiest markets tend to have some sharp sell-offs from time to time. The last time the S&P 500 had a pullback of just 5 percent was more than a year ago.

"What's really troubling most people more than anything is that we just go straight up," said JJ Kinahan, chief strategist at TD Ameritrade. "There hasn't been a pullback. That's what most on Wall Street are trying to come to grips with."

Encouraging reports on the economy have been helping stocks, and on Thursday they included a stronger-than-expected rebound in U.S. factory orders during August and a drop in the number of workers applying for unemployment benefits last week.

Friday's report from the Labor Department on monthly job growth will likely show momentum in the opposite direction, with most economists forecasting a drop-off in hiring. But that's mostly because of damage caused by recent hurricanes, which hopefully will be only temporary.


With the economy and corporate earnings seemingly solid, TD Ameritrade's Kinahan said if there is a trigger for a downturn in stocks, it would likely be either a new flash in political tensions with North Korea or somewhere else in the world, or a stumble in Washington's progress to reform the tax system.

Netflix jumped to the biggest gain in the S&P 500 Thursday after it raised the price on its most popular U.S. video streaming plan by 10 percent. Shares rose $9.94, or 5.4 percent, to $194.39.

Constellation Brands was close behind after it reported stronger earnings for the latest quarter and raised its forecast for upcoming profit. The company has been focusing on the higher end of the beer, wine and spirits markets. Its stock rose $8.07, or 4 percent, to $209.25.

On the losing end was student-loan servicing company Navient, which fell $2.09, or 14.3 percent, to $12.61. It said it was buying Earnest, a lender, for $155 million and would suspend its stock buyback program through 2018. Pennsylvania's attorney general also alleged in a lawsuit filed Thursday that Navient improperly added billions of dollars in costs to borrowers.

The yield on the 10-year Treasury note climbed to 2.34 percent from 2.32 percent late Wednesday. Higher interest rates tend to help financial stocks on the expectation that banks will make bigger profits from lending, and financials in the S&P 500 rose 1 percent.

Stock markets overseas were generally quiet, as exchanges in several of Asia's biggest exchanges were closed for holidays. Japan's Nikkei 225 index was virtually flat, France's CAC 40 rose 0.3 percent, Germany's DAX was close to flat and the FTSE 100 in London rose 0.5 percent.


The dollar fell to 112.85 Japanese yen from 112.98 yen late Wednesday. The euro dipped to $1.1708 from $1.1764, and the British pound slipped to $1.3116 from $1.3250.

In the commodities markets, benchmark U.S. crude rose 81 cents, or 1.6 percent, to settle at $50.79 per barrel. Brent crude, the standard for international oil prices, rose $1.20 to $57 per barrel.

In other energy trading, heating oil rose 1 cent to $1.79 a gallon, wholesale gasoline rose 3 cents to $1.61 a gallon and natural gas fell 2 cents to $2.92 per 1,000 cubic feet.

The price of gold fell $3.60 to $1,273.20 an ounce, silver edged up 1 cent to $16.64 an ounce and copper jumped 9 cents to $3.05 a pound.

 

[bigdog]

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Stocks Fade From Records; S&P 500 Breaks Winning Streak
U.S. stocks faded a bit from their record highs on Friday after telecom and energy stocks sank.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks faded a bit from their record highs on Friday after telecom and energy stocks sank. The loss for the Standard & Poor's 500 index was small, but it was the first in nearly two weeks.

Much of the day's action was centered on the government's jobs report, which is usually the most anticipated economic data of each month, but it was a muddled one.

Economists cautioned not to read too much into the hiring numbers, which were far weaker than expected, because they were distorted by hurricanes that damaged businesses from Texas to Florida. Investors focused instead on a stronger-than-expected rise in workers' wages, which helped to push Treasury yields higher.

The S&P 500 fell 2.74 points, or 0.1 percent, to 2,549.33. The loss meant the end of the longest winning streak for the index in four years. Roughly nine stocks fell for every five that rose on the New York Stock Exchange.

The Dow Jones industrial average slipped 1.72, or less than 0.1 percent, to 22,773.67. The Nasdaq composite added 4.82, or 0.1 percent, to 6,590.18. All three indexes had closed at records on Thursday.

The government's jobs report showed that employers cut more jobs last month than they added, the first time that's happened in seven years. It's a sharp turnaround from earlier this year, when the strengthening job market was encouraging investors to push stocks higher and higher.

Hurricanes Harvey and Irma meant the closure of thousands of businesses, and drops in employment at restaurants and bars were a big driver of last month's decline.

Many investors saw September's job losses as an aberration. Other economic data have been more encouraging, including strong reports on the nation's manufacturing and services sectors earlier this week.


Friday's jobs report also contained signs of strength. Average hourly wages jumped 2.9 percent in September from a year earlier, more than economists expected. Some of that may be due to how many lower-wage jobs were lost following the hurricanes, but the government also revised up its figure for wage growth in August.

"The previous month's revision, that probably has the most information" of all the data points in the government's jobs report, said Jon Adams, senior investment strategist at BMO Global Asset Management. "From the Fed's perspective, this doesn't change anything in terms of overall policy, but it makes them a little more worried about inflation."

If rising wage growth feeds into higher prices across the economy, it makes the Fed that much more likely to keep raising rates from their record lows. As a result, investors made moves Friday in anticipation of a rate increase in December.

The yield on the 10-year Treasury jumped as high as 2.39 percent shortly after the release of the jobs report, up from 2.35 percent late Thursday. The gains faded later in the day, which traders said may have been due to worries about tensions with North Korea. A Russian lawmaker said that North Korea is preparing to test-fire a long-range missile soon.

By Friday evening, the 10-year yield sat at 2.36 percent. The two-year Treasury yield climbed to 1.52 percent from 1.49 percent, and the 30-year yield rose to 2.91 percent from 2.89 percent.

When bonds pay higher yields, it makes them more attractive to investors looking for income and undercuts demand for stocks that pay relatively big dividends.

Telecom stocks in the S&P 500 fell 2 percent, the largest drop among the 11 sectors that make up the index.


Energy stocks were also among the market's weakest after the price of benchmark U.S. crude sank $1.50, or 3 percent, to settle at $49.29 per barrel. It's the fourth drop for oil in the last five days. Brent crude, the international standard, lost $1.38, or 2.4 percent, to $55.62 per barrel.

Costco Wholesale fell the most in the S&P 500 despite reporting stronger earnings for the latest quarter than expected. Analysts pointed to a slight drop in its membership renewal rates, among other factors. Costco lost $9.98, or 6 percent, to $157.09.

In overseas markets, the FTSE 100 in London rose 0.2 percent, France's CAC 40 fell 0.4 percent and Germany's DAX dipped 0.1 percent. Japan's Nikkei 225 rose 0.3 percent, and the Hang Seng in Hong Kong added 0.3 percent.

In the currency market, the dollar slipped to 112.71 Japanese yen from 112.85 yen late Thursday. The euro rose to $1.1735 from $1.1708, and the British pound fell to $1.3065 from $1.3116.

In the commodities markets, natural gas fell 6 cents to settle at $2.86 per 1,000 cubic feet, wholesale gasoline lost 5 cents to $1.56 per gallon and heating oil fell 4 cents to $1.74.

Gold rose $1.70 to settle at $1,274.90 per ounce, silver gained 15 cents to $16.79 per ounce and copper fell 2 cents to $3.03 per pound.

4200

 

[bigdog]

Markets in Japan and South Korea were closed for holidays.

https://www.usnews.com/news/busines...markets-advance-after-strong-wall-street-week

Health Care and Industrial Companies Lead US Stocks Lower
US stocks end lower on a quiet day of trading as health care and industrial companies skid.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Losses for health care companies and banks left U.S. stocks lower Monday after a quiet day of trading. Industrial conglomerate General Electric skidded after announcing more changes in its leadership.

Companies that distribute or sell prescription drugs continued to slide following speculation that Amazon plans to get into that business, something the company has not confirmed.

Banks dipped after a big rally over the last month and technology companies continued to climb. Smaller, more domestically-focused companies declined as investors tried to gauge the odds for tax cuts.

Stocks have rallied over the last two weeks as investors hope tax cuts proposed by the Trump administration and Congressional Republicans will boost corporate profits. But over the weekend President Donald Trump entered a war of words with Senator Bob Corker, a retiring Republican who has a reputation as a budget hawk. Republicans have a narrow majority and losing just a few votes could derail a bill.

"There really is not much leeway there," said Mona Mahajan, U.S. investment strategist for Allianz Global Investors. "They somehow have to get their act together."

The Standard & Poor's 500 index dipped 4.60 points, or 0.2 percent, to 2,544.73. The Dow Jones industrial average shed 12.60 points, or less than 0.1 percent, to 22,761.07. The Nasdaq composite fell 10.45 points, or 0.2 percent, to 6,579.73, which ended a nine-day winning streak. The Russell 2000 index of smaller-company stocks lost 6.66 points, or 0.4 percent, to 1,503.56.

Stock trading was light because of the Columbus Day holiday in the U.S. Bond trading was closed.

General Electric slipped after it named Ed Garden of Trian Fund Management to its board of directors. Trian, a well-known activist investment firm founded by Nelson Peltz, has been pushing the conglomerate to slim down. GE lost 96 cents, or 3.9 percent, to $23.43. It's down 26 percent this year.


GE has announced slew of changes in its leadership this month. John Flannery replaced Jeffrey Immelt as CEO a week ago, several months ahead of the schedule the company announced in June. On Friday GE said Chief Financial Officer Jeffrey Bornstein will leave at the end of the month. Two vice chairs are also retiring.

Health care companies did worse than the rest of the market. Companies that distribute or sell prescription medicines or administer prescription drug benefits tumbled for a second day as investors continued to worry about Amazon entering the prescription drug business. Analysts raised that possibility Friday. Amazon has declined to comment.

Pharmacy benefits manager Express Scripts lost $3.14, or 5 percent, to $59.22 and prescription drug distributor McKesson dropped $3.15, or 2.1 percent, to $148.14 while Walgreens gave up $2.33, or 3.2 percent, to $70.87, its lowest close in more than a year and a half.

Medical device maker Medtronic gave up $2.88, or 3.6 percent, to $76.93. The company said late Friday that Hurricane Maria will reduce its quarterly profit and revenue by about $250 million. Medtronic has four facilities in Puerto Rico that were damaged by the storm and manufacturing won't fully recover for weeks.

Third-quarter earnings reports will start later this week when major banks start announcing their results. Investors expect continued strong results from technology companies. The industry has led the market higher for most of this year. Chipmaker Nvidia added $4.09, or 2.3 percent, to $185.39 and cloud computing company Citrix Systems gained $1.15, or 1.4 percent, to $80.62.


Three major hurricanes hit the U.S. in the last two months, and experts expect that to affect economic growth and corporate profits.

"One of the sectors that we think is going to get hit is the insurance sector because they're going to be paying out all these claims," said Mahajan, of Allianz. She said the storms will reduce third-quarter economic growth by 0.4 percent. Historically, the economy bounces back from major storms quickly as people rebuild damaged areas.

Electric car maker Tesla declined after the Wall Street Journal reported on the company's struggles in producing its new, lower-priced Model 3 Sedan. The Journal reported Friday that Tesla workers were making some Model 3 parts by hand as recently as September. Last week Tesla missed its third-quarter production goals. The stock fell $13.94, or 3.9 percent, to $342.94.

Benchmark U.S. crude rose 29 cents to $49.58 a barrel in New York as Tropical Storm Nate moved away from the Gulf Coast, where much of U.S. crude is drilled and processed. Nate hit Southeastern Louisiana Saturday evening and Mississippi on Sunday, but was downgraded to a tropical depression by midday Sunday.

Brent crude, used to price international oils, added 17 cents to $55.79 a barrel in London.

Wholesale gasoline stayed at $1.56 a gallon. Heating oil lost 1 cent to $1.74 a gallon. Natural gas shed 3 cents to $2.83 per 1,000 cubic feet.

Gold added $10.10 to $1,285 an ounce. Silver climbed 18 cents, or 1.1 percent, to $16.97 an ounce. Copper remained at $3.03 a pound.

The dollar slipped to 112.69 yen from 112.71 yen. The euro rose to $1.1752 from $1.1735.


The DAX in Germany rose 0.2 percent and the CAC 40 of France added 0.1 percent. The British FTSE 100 fell 0.2 percent. Hong Kong's Hang Seng lost 0.5 percent. Markets in Japan and South Korea were closed for holidays.

 

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https://www.usnews.com/news/busines...res-mixed-as-wall-street-rally-takes-breather

Stocks Rise After Strong Forecasts From Wal-Mart, Airlines
US stocks are higher after Wal-Mart projected strong growth in online sales and United Airlines and American Airlines raised their forecasts for the third quarter.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks are edging higher on Tuesday as a strong forecast from Wal-Mart lifts retailers and energy companies rise with the price of crude oil. Airlines are climbing after United Continental and American gave solid forecasts for the current quarter. Consumer products company Procter & Gamble is slipping after saying its shareholders did not elect activist investor Nelson Peltz to its board of directors.

KEEPING SCORE: The Standard & Poor's 500 index added 4 points, or 0.2 percent, to 2,548 as of 3:15 p.m. Eastern time. The Dow Jones industrial average gained 51 points, or 0.2 percent, to 22,812, on pace for another record high. Wal-Mart was responsible for most of that gain. The Nasdaq composite rose 2 points to 6,582. The Russell 2000 index of smaller-company stocks rose 2 points, or 0.2 percent, to 1,506.

RETAIL SURGE: Wal-Mart climbed after it said it expects digital sales to rise 40 percent next year. The company has made a string of acquisitions, including online retailer Jet, as it tries ramp up its online sales to compete with Amazon.com. Wal-Mart also said it plans to buy back $20 billion of its own stock. Wal-Mart gained $4.31, or 5.4 percent, to $84.85. Target rose $1.27, or 2.2 percent, to $57.52 and Amazon declined $7.55 to $983.44.

THE QUOTE: Katie Nixon, chief investment officer for Northern Trust Wealth Management, said Wal-Mart's online business is critical to its survival, so investors are glad to see signs of success.

"There's very little retail loyalty now," she said. "Consumers just want choice, price and convenience."

TAKEOFF: Airlines rose after American raised an important revenue forecast and United Continental predicted bigger profit margins. Airlines have been stung by a series of hurricanes that affected the Southeastern U.S. over the last few months. Investors are worried about extensive discounts on ticket prices, but so far their third-quarter results look better than expected.


United jumped $3.56, or 5.5 percent, to $68.26 and American rose $2.57, or 5.1 percent, to $53.17. Delta gave a positive update of its own a week ago, and on Tuesday it picked up $1.30, or 2.5 percent, to $53.04.

KNOCK-KNOCK: Procter & Gamble stumbled after saying its shareholders did not elect Peltz to its board. Preliminary vote totals showed a close result and Peltz did not immediately concede defeat.

Peltz, of Trian Fund Management, says the company's performance has been disappointing for the last decade. The maker of Tide detergent and Crest toothpaste urged shareholders to vote against Peltz and says he hasn't offered any specific ideas. The stock fell $1.06, or 1.2 percent, to $91.06 after Procter & Gamble's announcement.

BREAKUPS: Industrial conglomerate Honeywell said it will split up. It will keep its aerospace business, while its transportation business will become a separate company. Honeywell's home heating, ventilation and security systems and fire prevention unit and its global distribution business will become a third company. Honeywell lost 28 cents to $143.32.

Pfizer said it might sell or spin off its consumer products business, which owns brands like ChapStick, Advil, Robitussin and Preparation H. It expects to make a decision next year. Pfizer rose 9 cents to $36.23.

ENERGY: Benchmark U.S. crude oil added $1.34, or 2.7 percent, to $50.92 a barrel in New York. Brent crude, used to price international oils, gained 82 cents, or 1.5 percent, to $56.61 a barrel in London.


Wholesale gasoline added 3 cents to $1.59 a gallon. Heating oil picked up 3 cents to $1.76 a gallon. Natural gas jumped 6 cents to $2.89 per 1,000 cubic feet.

CARS AND CHIPS: Chipmaker Nvidia will work with Deutsche Post DHL to start testing autonomous delivery trucks in 2018. The stock rose $3.58, or 1.9 percent, to $188.97. It's climbed more than 1,000 percent in three years.

Automotive parts and electronics maker Delphi slumped. Delphi has announced several partnerships to develop and test autonomous cars, including a pact with a French transport company. It lost $1.23, or 1.2 percent, to $98.89. Intel, one of Delphi's partners in that business, shed 33 cents to $39.53.

CURRENCIES: The dollar slipped to 112.37 yen from 112.69 yen. The euro rose to $1.1804 from $1.1752.

METALS: Gold climbed $8.80 to $1,293.80 an ounce and silver jumped 24 cents to $17.21 an ounce. Copper rose 3 cents to $3.06 a pound.

BONDS: Bond prices moved higher. The yield on the 10-year Treasury note slipped to 2.34 percent from 2.36 percent.

OVERSEAS: Germany's DAX slipped 0.2 percent while Britain's FTSE 100 added 0.4 percent. The CAC 40 in France fell slightly. Japan's Nikkei 225 index gained 0.6 percent to its highest close in 21 years. South Korea's Kospi jumped 1.7 percent after a weeklong holiday. The Hang Seng index in Hong Kong climbed 0.6 percent.

 

[bigdog]

https://www.usnews.com/news/busines...higher-after-wall-street-sets-new-record-high

Tech and Health Care Stocks Take Indexes Back to Records
US stocks edge up just enough to set more records as technology, health care and household goods companies move higher.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stock indexes drifted back to record highs Wednesday as investors got ready for another round of corporate reports to begin. Technology, health care and household goods companies all rose.

Technology companies like PayPal, Visa, and Google's parent company Alphabet made some of the biggest gains as the market was little changed for the third day in a row. Banks slipped along with interest rates and industrial companies took small losses.

Minutes from the Federal Reserve's September meeting showed officials were split about whether they need to raise interest rates again soon. But they appeared to be getting used to the idea that inflation is going to stay lower than they had hoped. For years it's come up short of their 2-percent target.

Kristina Hooper, global markets strategist for Invesco, said one reason for that low inflation is continued fallout from the financial crisis a decade ago. In her view, many of the jobs that were lost after the 2008-09 meltdown were replaced by lower-paying ones.

"There are still a good portion of Americans who are making less today than they made before the global financial crisis," she said. "That's playing a role in lower wage growth and low inflation."

The Standard & Poor's 500 index gained 4.60 points, or 0.2 percent, to 2,555.24. The Dow Jones industrial average added 42.21 points, or 0.2 percent, to 22,872.89. The Nasdaq composite rose 16.30 points, or 0.2 percent, to 6,603.55. All three indexes finished at all-time highs. The Russell 2000 index of smaller-company stocks edged down 1.08 points, or 0.1 percent, to 1,506.92.

Hooper said inflation might increase if President Donald Trump and Congress pass a tax cut that encourages businesses to invest more money. She said that businesses and consumers both feel optimistic about the economy, but they're reluctant to spend money because they're not sure what economic policy will look like.


Airlines rose for the second day in a row. Delta Air Lines' profit and revenue were better than analysts anticipated, and the company also issued a strong forecast for the fourth quarter. Delta rose 37 cents to $53.07. It has surged 9 percent since Oct. 3, when it raised its third-quarter projections. JetBlue gained 30 cents, or 1.5 percent, to $20.53 after it gave an update on the revenue it lost following hurricanes Irma and Maria.

Johnson & Johnson led health care companies higher after it asked regulators to approve its drug apalutamide. It's intended for patients with a hard-to-treat form of prostate cancer. Johnson & Johnson stock climbed $2.75, or 2.1 percent, to $136.65.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.35 percent from 2.36 percent. That sent affected bank stocks because lower yields mean lower interest rates on loans, and lower profits for banks.

JPMorgan Chase and Citigroup will report their quarterly results Thursday morning as bank earnings get started.

An upset loss by the U.S. men's soccer team dented shares of Twenty-First Century Fox. The team will miss the 2018 World Cup following its loss to Trinidad and Tobago. That could cut into advertising revenue for Fox, which will broadcast the event. The stock fell 66 cents, or 2.5 percent, to $26.11.

Luxury handbag and accessories maker Coach said it will change its name to Tapestry at the end of October. It bought the Kate Spade and Stuart Weitzman brands over the last few years and said it wants its name to reflect its growth beyond the iconic Coach brand. The stock lost $1.13, or 2.8 percent, to $38.87.


Sears sagged after the company's former Canadian unit asked a court to allow it to liquidate its 130 remaining stores. Sears Canada said it couldn't find a buyer to allow it to stay in business. Sears Canada was split off from Sears Holdings in 2014, but the U.S. business has also been struggling for years and investors are unsure about its future. On Wednesday the stock lost 46 cents, or 6.9 percent, to $6.24.

Benchmark U.S. crude oil rose 38 cents to $51.30 a barrel in New York. Brent crude, used to price international oils, added 33 cents to $56.94 a barrel in London.

Wholesale gasoline picked up 2 cents to $1.61 a gallon. Heating oil gained 2 cents to $1.79 a gallon. Natural gas remained at $2.89 per 1,000 cubic feet.

Gold fell $4.90 to $1,288.90 an ounce. Silver lost 7 cents to $17.13 an ounce. Copper gained 4 cents to $3.10 a pound.

The dollar rose to 112.42 yen from 112.37 yen. The euro rose to $1.1855 from $1.1804.

The German DAX added 0.2 percent and the FTSE 100 in Britain slipped 0.1 percent. France's CAC 40 took a small loss. The Spanish Ibex 35 rose 1.3 percent after the Catalan regional government stopped short of declaring independence. Late Tuesday regional President Carles Puigdemont said Catalonia should hold talks with the Spanish central government after a landslide result in an independence referendum earlier this month.

The Madrid-based government has given few hints it is willing to talk since it does not consider the vote to be valid.

Japan's Nikkei 225 index rose 0.3 percent and closed at another 21-year high. South Korea's Kospi rose 1 percent but the Hang Seng in Hong Kong ended 0.4 percent lower.

 

[bigdog]

https://www.usnews.com/news/busines...mostly-rise-taking-cue-from-wall-street-gains

Media and Retail Losses Pull Stock Indexes Away From Highs
Major stock indexes slip as a weak forecast from J. Jill hurts retailers while cable and media companies skid after AT&T says it's losing video subscribers.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stock indexes retreated from their record highs Thursday as retailers and media companies declined and investors shrugged at quarterly reports from a few big banks.

Clothing companies and other retailers fell after women's clothing company J. Jill slashed its third-quarter forecast. The company's stock lost more than half its value.

AT&T had its worst one-day loss since 2008 after it said lost more satellite and cable TV subscribers in the third quarter. Other cable and satellite TV companies also stumbled. Industrial companies and household goods makers finished higher.

JPMorgan Chase and Citigroup both did better than analysts expected in the third quarter, but their stocks fell and so did shares of other banks. They've made big gains over the last month.

CFRA Investment Strategist Lindsey Bell said the companies reported good results from their consumer banking businesses, but other divisions didn't do as well.

"The bar was set kind of high," she said. "Given the run that these stocks have had into these earnings reports, they're going to need to see these other businesses pick up steam."

The Standard & Poor's 500 index fell 4.31 points, or 0.2 percent, to 2,550.93. The Dow Jones industrial average lost 31.88 points, or 0.1 percent, to 22,841.01. The Nasdaq composite dipped 12.04 points, or 0.2 percent, to 6,591.51. Those three indexes closed at record highs Wednesday. The Russell 2000 index of smaller-company stocks slumped 1.76 points, or 0.1 percent, to 1,505.16.

More stocks rose than fell on the New York Stock Exchange.

AT&T said it lost about 90,000 DirecTV video subscribers in the U.S. in the third quarter because of growing competition in streaming video services. That's a bigger drop than the one it reported a year ago even though it's launched DirecTV Now, an online service that doesn't cost as much. The company said tighter credit standards and hurricanes also affected its business. AT&T stock fell $2.33, or 6.1 percent, to $35.86.


Verizon Communications shed 51 cents, or 1 percent, to $48.35 and cable provider Comcast fell $1.47, or 3.8 percent, to $35.95. Dish Network slid $2.62, or 5.1 percent, to $49.03. Cable channel operator Discovery Communications lost 72 cents, or 3.6 percent, to $19.28.

Industrial and transportation companies like railroads did better than the rest of the market. Machinery maker Caterpillar gained $1.39, or 1.1 percent, to $129.99 and railroad operator Norfolk Southern rose $2.20, or 1.7 percent, to $133.69.

Citigroup said its investment banking business did well in the latest quarter, while JPMorgan Chase said its consumer banking business improved compared to a year ago. But Citigroup fell $2.57, or 3.4 percent, to $72.37 and JPMorgan gave up 85 cents to $95.99.

Bell, of CFRA Research, noted that banks have jumped and regional bank stocks have done especially well over the last month, but the third quarter is a tricky one for many banks because stock and bond market trading is fairly quiet.

J. Jill stock nosedived after the retailer of women's clothes, shoes and accessories slashed its outlook for the third quarter. The company said retail and direct-to-consumer sales both fell short of its expectations and cut its earnings forecast in half. J. Jill stock opened at $13 a share after its March IPO and on Thursday it plunged $5.07, or 51.1 percent, to $4.86.

Retailer Express sank 53 cents, or 8.3 percent, to $5.88 and Chico's FAS lost 57 cents, or 7.2 percent, to $7.40. Gap lost $1.21, or 4.3 percent, to $27.21.

Southwest Airlines rose and Hawaiian skidded after Southwest said it plans to start flying to Hawaii. It will start selling tickets for those flights in 2018. Southwest stock picked up 26 cents to $58.81 while Hawaiian Holdings lost $1, or 2.5 percent, to $39.

Benchmark U.S. crude oil lost 70 cents, or 1.4 percent, to $50.60 a barrel in New York. Brent crude, used to price international oils, fell 69 cents, or 1.2 percent, to $56.25 a barrel in London. That weighed on energy companies.

Wholesale gasoline dipped 3 cents to $1.58 a gallon. Heating oil shed 2 cents to $1.77 a gallon. Natural gas jumped 10 cents, or 3.5 percent, to $2.99 per 1,000 cubic feet.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.32 percent from 2.35 percent.

Gold rose $7.60 to $1,296.50 an ounce. Silver gained added 13 cents to $17.27 an ounce. Copper added 2 cents to $3.12 a pound.

The dollar inched down to 112.22 yen from 112.42 yen. The euro declined to $1.1836 from $1.1855.

The British FTSE 100 index rose 0.3 percent and closed at a record high as the pound dropped. That came after a European Union regulator said talks with Britain about its departure from the EU hadn't made any significant progress. The DAX in Germany continued to set records as it inched up 0.1 percent. France's CAC 40 fell less than 0.1 percent.

Japan's benchmark Nikkei 225 continued to reach 21-year highs and added 0.4 percent. The South Korean Kospi rose 0.7 percent and Hong Kong's Hang Seng advanced 0.3 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ubdued-as-investors-brace-for-earnings-season

Gains for Tech Help US Stocks Higher, but Insurers Skid
Technology companies lead US stocks higher and retailers and travel companies rise after the government says retail spending increased in September.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks finished mostly higher Friday to wrap up a subdued week, and technology companies did most of the heavy lifting. Investors were also pleased to see that shoppers spent more money in September.

Printer and PC maker HP sent technology companies higher after releasing a strong profit forecast for next year. Big names like Intel and Facebook also rose. Companies in retail, travel and entertainment moved up after the Commerce Department's report on retail spending. Health insurers and hospital operators skidded after President Donald Trump said he will stop government payments to insurance companies under the Affordable Care Act.

Bank of America climbed while Wells Fargo faded as banks continued to report their third-quarter results. But in the early going, investors don't seem as excited about this round of company earnings compared to earlier in the year. Sean Lynch, the co-head of global equity strategy for Wells Fargo Investment Institute, said that unless this batch of corporate reports is surprisingly good, stocks won't rise much further.

"If we come in at expectations or slightly above, I think markets maintain these gains," he said. Lynch said earnings for Standard & Poor's 500 companies should rise five or six percent for the quarter. If that doesn't happen, he said the S&P 500 could decline four or five percent by the end of the year. That's not a huge loss, but stocks haven't fallen that much since early 2016.

The Standard & Poor's 500 index added 2.24 points, or 0.1 percent, to 2,553.17. The Dow Jones industrial average picked up 30.71 points, or 0.1 percent, to 22,871.72. The Nasdaq composite gained 14.29 points, or 0.2 percent, to close at a record high of 6,605.80. The Russell 2000 index of smaller-company stocks slid 2.51 points, or 0.2 percent, to 1,502.66.


The Commerce Department said retail sales grew 1.6 percent in September after a small decline in August. Much of the gain came from car and gasoline sales: sales of cars jumped as people living in the Southeast and Gulf Coast replaced vehicles that were destroyed by hurricanes Harvey and Irma, which also caused temporary spikes in gas prices. But other types of spending grew by a solid amount as well.

HP forecast a larger annual profit than analysts expected, and also said it will return at least 50 percent of its free cash flow to shareholders by paying dividends or buying back stock. HP stock gained $1.31, or 6.4 percent, to $21.71.

The White House said late Thursday that it is stopping subsidy payments to insurers under the 2010 health care law. Those payments help reduce copays and deductibles for people with lower incomes. The move could increase losses for insurers and reduce payments to hospitals and other health care facilities. Adding to the uncertainty, the sign-up period for subsidized private insurance starts Nov. 1.

Medicaid program administrator Centene lost $3.12, or 3.2 percent, to $90.56 and insurer Anthem gave up $5.81, or 3.1 percent, to $184.38. Hospital operator Tenet dropped 71 cents, or 5.1 percent, to $13.15 and ambulatory surgery center operator Envision Healthcare fell 91 cents, or 2.2 percent, to $40.74.

Bond prices rose. The yield on the 10-year Treasury note declined to 2.27 percent from 2.32 percent.

Materials companies rose with metals prices. Gold gained $8.10 to $1,304.60 an ounce. Silver climbed 15 cents to $17.41 an ounce. Copper rose 1 cent to $3.13 a pound.


Steelmakers climbed after Bloomberg News reported that China imported a record amount of iron ore in September and exported less steel. That sent prices higher. U.S. Steel climbed $1.80, or 7 percent, to $27.36 and AK Steel added 31 cents, or 5.6 percent, to $5.80.

Utility PG&E continued to tumble as investors wondered if the company will face penalties connected to the California wildfires. Officials said this week they are investigating the possibility that downed power lines or other faulty equipment touched off the fires, which have killed 31 people and destroyed at least 3,500 homes since Sunday.

PG&E stock dropped 6.7 percent Thursday and fell another $6.78, or 10.5 percent, to $57.72 on Friday. Citi Investment Research analyst Praful Mehta said the company lost $2.2 billion in value Thursday alone, and even if PG&E were found responsible and grossly negligent for the fires, he says it probably wouldn't be fined much more than that.

Benchmark U.S. crude oil picked up 85 cents, or 1.7 percent, to $51.45 a barrel in New York. Brent crude, used to price international oils, gained 92 cents, or 1.6 percent, to $57.17 a barrel in London.

Wholesale gasoline rose 4 cents to $1.62 a gallon. Heating oil added 3 cents to $1.80 a gallon. Natural gas edged up 1 cent to $3 per 1,000 cubic feet.

The dollar fell to 111.89 yen from 112.22 yen. The euro dipped to $1.1817 from $1.1836.

The DAX in Germany rose 0.1 percent while the FTSE 100 index in Britain lost 0.3 percent. The French CAC 40 fell 0.2 percent. Japan's Nikkei 225 rose 1 while South Korea's Kospi lost 0.1 percent. In Hong Kong, the Hang Seng added 0.1 percent.

4432

 

[bigdog]

https://www.usnews.com/news/busines...-higher-after-finance-leaders-back-easy-money

US Stock Indexes Post Slight Gains, Extending Winning Streak
U.S. stocks posted modest gains Monday, extending a record-setting run into a sixth straight week.

By ALEX VEIGA, AP Business Writer

U.S. stocks posted modest gains Monday, extending a record-setting run into a sixth straight week.

Financial and technology companies notched some of the biggest gains. Energy stocks also rose as crude oil prices closed higher. Health care companies declined the most. Bond prices fell.

The three major stock indexes closed at new highs, despite a day of mostly listless trading as investors looked ahead to a slew of company earnings reports over the next few weeks.

"Today is a sort of wait-and-see market as investors are really looking for the direction of earnings and whether companies continue to report strong results," said Kate Warne, investment strategist at Edward Jones. "That will be a catalyst for stocks to move higher."

The Standard & Poor's 500 index added 4.47 points, or 0.2 percent, to 2,557.64. Last week marked the index's fifth-straight weekly gain.

The Dow Jones industrial average rose 85.24 points, or 0.4 percent, to 22,956.96. The Nasdaq composite gained 18.20 points, or 0.3 percent, to 6,624. The Russell 2000 index of smaller-company stocks inched up 0.02 points to 1,502.68.

Trading was subdued for most of the day Monday. Stocks edged up early on and wavered somewhat by afternoon but ultimately held on to their slight gains as traders awaited for more quarterly results from companies to pour in.

A few companies, mostly big banks, kicked off the third-quarter earnings season last week. Monday was a relatively light day for earnings, but the pace was slated to pick up on Tuesday and into next week, when the bulk of S&P 500 companies are scheduled to report quarterly results.

Among the companies due to report earnings this week are Goldman Sachs, UnitedHealth Group, American Express and General Electric.

In the meantime, investors bid up shares in banks and technology companies. The sectors are the biggest gainers in the S&P 500 so far this year. JPMorgan Chase gained $1.98, or 2.1 percent, to $97.84. Micron Technology rose $1.09 or 2.7 percent, to $41.49.

"Tech and financials are somewhat higher as investors continue to expect good earnings ahead," Warne said.

Health care stocks declined the most. Allergan fell $7.11, or 3.5 percent, to $198.41, while Bristol-Myers Squibb slid $1.64, or 2.5 percent, to $63.65.

Traders bid up shares of companies announcing deals.

Ruby Tuesday jumped 18.6 percent after the struggling restaurant chain said it has agreed to be acquired by NRD Capital in a deal valued by the companies at $335 million, or $2.40 a share, including debt and other items. The stock added 37 cents to $2.36.

KBR climbed 3.6 percent after the engineering and construction company said it will buy Australian defense technology company Sigma Bravo. Shares in KBR added 64 cents to $18.29.

Nordstrom slid 5.3 percent after the department store chain said it is temporarily shelving its bid to go private. The stock shed $2.25 to $40.40.

Sears Holdings slumped 11.5 percent on news that Bruce Berkowitz, who runs a firm that is the retailer's biggest shareholder, is leaving Sears' board of directors. Sears shed 78 cents to $5.99.

Oil prices rose amid rising tensions in the Middle East as Iraqi federal forces moved into the disputed city of Kirkuk and seized oil fields, prompting a withdrawal by Kurdish forces. Benchmark U.S. crude oil picked up 42 cents, or 0.8 percent, to $51.87 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, climbed 65 cents, or 1.1 percent, to $57.82 a barrel in London.

That helped boost energy companies. Apache rose 90 cents, or 2.2 percent, to $42.50.

In other energy trading, wholesale gasoline was little changed at $1.62 a gallon. Heating oil added 2 cents to $1.81 a gallon. Natural gas slid 5 cents to $2.95 per 1,000 cubic feet.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.30 percent from 2.27 percent late Friday.

Gold lost $1.60 to $1,303 an ounce. Silver slid 4 cents to $17.37 an ounce. Copper rose 11 cents, or 3.4 percent, to $3.24 a pound.

The dollar rose to 112.22 yen from 111.89 yen on Friday. The euro weakened to $1.1792 from $1.1817.

Global stocks closed mostly higher after finance leaders appealed over the weekend for a continuation of low-interest rate policies to keep economic recoveries on track.

In Europe, Germany's DAX rose 0.1 percent, while France's CAC 40 gained 0.2 percent. The FTSE 100 in London slipped 0.1 percent.

Japan's Nikkei 225 index added 0.5 percent and Hong Kong's Hang Seng index surged 0.8 percent. South Korea's Kospi rose 0.3 percent, while the S&P ASX/200 added 0.6 percent. India's Sensex picked up 0.6 percent. Shares in Southeast Asia were higher.

 

[bigdog]

https://www.usnews.com/news/business/articles/2017-10-17/asian-stocks-gain-after-wall-street-records

US Stock Indexes Close Mostly Higher; New Highs for Dow, S&P
Gains by health care companies led U.S. stocks indexes mostly higher Tuesday, pushing the market further into record territory.

By ALEX VEIGA, AP Business Writer

Gains by health care companies led U.S. stock indexes mostly higher Tuesday, pushing the market further into record territory.

The Dow Jones industrial average briefly climbed above the 23,000 mark for the first time, settling just below the milestone. Slight gains nudged the Dow and Standard & Poor's 500 indexes to new highs for the second straight day this week.

Health care companies posted some of the biggest gains following strong earnings from UnitedHealth Group and Johnson & Johnson. News of a plan backed by the White House that would extend federal payments to health insurers also gave the sector a boost. Banks and other financial stocks declined the most. Packaged food and beverage companies were also big laggards.

Trading was mostly listless as investors sized up the latest company earnings news and looked ahead to a full slate of corporate report cards later this week.

"Expectations of ongoing earnings growth are reasonably strong, but there may be a bit of a wait-and-see at this point in time given the run in the equity markets," said Jason Pride, director of investment strategy at Glenmede.

The S&P 500 index added 1.72 points, or 0.1 percent, to 2,559.36. The Dow picked up 40.48 points, or 0.2 percent, to 22,997.44. The Nasdaq composite slipped 0.35 points, or 0.01 percent, to 6,623.66. The Russell 2000 index of smaller-company stocks fell 5.18 points, or 0.3 percent, to 1,497.50.

More stocks fell than rose on the New York Stock Exchange.

The major stock indexes drifted between small gains and losses for much of the day.

Early on, traders eyed big company earnings news from Goldman Sachs, Morgan Stanley, UnitedHealth Group and Johnson & Johnson, among others.


UnitedHealth, the country's biggest health insurer, jumped 5.5 percent after reporting earnings that beat analyst estimates. The stock gained $10.69 to $203.89. Johnson & Johnson added 3.4 percent after reporting a strong quarter of its own. Its shares picked up $4.67 to $140.79.

Health insurers, hospitals and other health care companies also rose as two leading lawmakers reached a deal on a plan that would extend federal payments to health insurers that President Donald Trump had blocked last week. Trump said Tuesday afternoon that the White House has been involved in the plan, which he called a "short-term deal." Biogen gained $8.799, or 2.6 percent, to $344.47, while Anthem added $3.50, or 1.9 percent, to $187.26.

Morgan Stanley posted quarterly results above Wall Street's expectations. Its shares rose 18 cents, or 0.4 percent, to $49.12.

Traders took a dimmer view of Goldman Sachs' results. The bank also posted results that beat financial analysts' estimates, but its trading desks, which are weighted toward bonds, currencies and commodities, struggled during the quarter. Goldman slid $6.32, or 2.6 percent, to $239.09.

Netflix fell 1.6 percent after the streaming video company said its debt and programming costs continue to rise as it gained subscribers last quarter. Its shares lost $3.20 to $199.48.

While only a few companies have reported results so far, earnings are mostly looking good, noted Erik Davidson, chief investment officer for Wells Fargo Private Bank.

"Earnings are growing year-over-year and, most importantly, the (revenue) overall thus far seems to be doing OK," he said.

Fifty companies are scheduled to report quarterly results this week, the first full week of the third-quarter earnings season. S&P 500 companies are forecast to deliver 3.3 percent earnings growth in the third quarter, according to S&P Global Market Intelligence.


Among the big names due to report earnings this week are American Express, Verizon Communications and General Electric.

Traders also drew encouragement Tuesday from economic data that showed U.S. industrial production rose a solid 0.3 percent last month, as manufacturing of automobiles, home electronics and appliances increased. The gains were limited due to lingering damage from Hurricanes Harvey and Irma.

Separately, a gauge of homebuilders' confidence rose more than expected this month as builders looked past a recent slowdown in new home sales and the risk of rising labor and materials costs in the wake of the two hurricanes.

Bond prices were little changed. The yield on the 10-year Treasury note held steady at 2.30 percent.

Oil prices closed slightly higher, rebounding after an early slide.

Benchmark U.S. crude gained a penny to settle at $51.88 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 6 cents to close at $57.88 a barrel in London.

In other energy trading, wholesale gasoline rose a penny to $1.63 a gallon. Heating oil was little changed at $1.81 a gallon. Natural gas added 2 cents to $2.96 per 1,000 cubic feet.

Gold fell $16.80, or 1.3 percent, to $1,286.20 an ounce. Silver slid 33 cents to $17.04 an ounce. Copper lost 4 cents to $3.20 a pound.

The dollar fell to 112.18 yen from 112.22 yen. The euro weakened to $1.1772 from $1.1792. The pound fell to $1.3191 from $1.3243 after Bank of England Governor Mark Carney warned about the economic impact of Brexit.


Markets overseas were mixed.

In Europe, Germany's DAX fell 0.1 percent, while France's CAC 40 was essentially flat. London's FTSE 100 dipped 0.1 percent.

In Asia, Hong Kong's Hang Seng was unchanged ahead of a twice-a-decade congress Wednesday by China's ruling Communist Party. Tokyo's Nikkei 225 gained 0.4 percent, while Sydney's S&P-ASX 200 rose 0.7 percent. Seoul's Kospi added 0.2 percent.

 

[bigdog]

https://www.usnews.com/news/busines...xed-nikkei-cheered-by-likely-ruling-party-win

Record Highs for Major US Stock Indexes; Dow Passes 23,000
A day of modest gains on Wall Street resulted in more milestones for U.S. stocks Wednesday as the Dow Jones industrial average closed above 23,000 points for the first time.

By ALEX VEIGA, AP Business Writer

A day of modest gains on Wall Street resulted in more milestones for U.S. stocks Wednesday as the Dow Jones industrial average closed above 23,000 points for the first time.

The Standard & Poor's 500 index and Nasdaq composite also finished at record highs.

Technology stocks and financial companies led the gainers as investors weighed the latest batch of company earnings. Strong quarterly results drove IBM shares to their biggest one-day gain since 2009. Those gains accounted for much of the 30-company Dow's record high.

"For us it's just another indication that it is a strong market here, year-to-date," said Paul Springmeyer, investment managing director for US Bank Private Wealth Management. "To have the Dow up over 17 percent is a very, very strong year."

All told, the Dow picked up 160.16 points, or 0.7 percent, to 23,157.60. The S&P 500 index rose 1.90 points, or 0.1 percent, to 2,561.26. The Nasdaq added 0.56 points, or 0.01 percent, to 6,624.22. The Russell 2000 index of smaller-company stocks gained 7.65 points, or 0.5 percent, to 1,505.14.

The S&P 500 and Dow also set records on Monday and Tuesday.

The Dow closed above 22,000 for the first time on Aug 2, and since then the best-performing components have been Boeing, Caterpillar, Goldman, Home Depot and 3M. The Dow is up 3,395 points this year, or 17.2 percent.

Despite the market's recent string of record highs and the Dow's latest milestone, stocks can still grind higher as long as the economy continues to expand and companies grow revenue, said Quincy Krosby, chief market strategist at Prudential Financial.

"Overall, the underpinning for the market is solid," Krosby said. "You have global growth picking up the way it has over the last quarter, it's an indication that demand is picking up as well and it's why you have global markets doing well."


Investors continued to size up the latest raft of company earnings Wednesday.

IBM jumped 8.9 percent after the technology and consulting company delivered strong quarterly results. The gain was the biggest one-day jump for IBM since January 2009. Even so, the stock remains down 3.9 percent for the year.

IBM's gain was responsible for 89 points of the Dow's increase. Gains by Goldman Sachs accounted for another 40 points of the 30-company average's climb.

Financial stocks led the gainers Wednesday. Goldman Sachs picked up $5.94, or 2.5 percent, to $242.03. Insurer Assurant climbed $5.94, or 6.2 percent, to $101.80.

Traders bid up shares in companies that reported quarterly results that beat the Street.

Northern Trust shares picked up 3.8 percent after the bank's earnings and revenue beat analysts' estimates. The bank also said it plans to cut $250 million in annual spending by 2020. The stock added $3.48 to $94.58.

Investors also sized up corporate deals and other developments making the news Wednesday.

Anthem, the second-largest U.S. health insurer, rose 2.4 percent after announcing that it's entered a prescription benefits management deal with CVS. Anthem shares added $4.53 to $191.79. CVS rose $1.47, or 2 percent, to $74.10.

The Nielsen company climbed 4.2 percent after the long-time tracker of TV viewership said it now has a way to collect details on the number of people who watch programs on streaming video services like Netflix and Amazon. Nielsen said that eight television networks and studios, including ABC and NBC, have already subscribed to its new service. The stock rose $1.69 to $41.69.


Electronic Arts slid 2.4 percent after the video game company said it will postpone the release of an upcoming "Star Wars" game to make changes. The game was scheduled to be released next year or in early 2019. EA is also closing down its Visceral Games studio. Shares lost $2.82 to $113.16.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.34 percent from 2.30 percent late Tuesday.

Oil prices recovered from an early slide. Benchmark U.S. crude rose 16 cents to settle at $52.04 a barrel in New York. Brent crude, used to price international oils, gained 27 cents to close at $58.15 a barrel in London.

Shares in drilling and oil production companies declined, part of a steep slide in energy stocks. Range Resources slid 45 cents, or 2.3 percent, to $19.

In other energy trading, wholesale gasoline rose a penny to $1.64 a gallon. Heating oil slipped a penny to $1.80 a gallon. Natural gas lost 11 cents, or 3.6 percent, to $2.85 per 1,000 cubic feet.

Gold fell $3.20 to $1,283 an ounce. Silver slid 4 cents to $17 an ounce. Copper lost 2 cents to $3.18 a pound.

The dollar rose to 112.90 yen from 112.18 yen on Tuesday. The euro strengthened to $1.1802 from $1.1772.

Major European stock indexes closed higher Wednesday.

Germany's DAX gained 0.3 percent, while France's CAC 40 rose 0.4 percent. The FTSE 100 index of leading British shares added 0.4 percent. In Asia, Japan's benchmark Nikkei 225 rose 0.1 percent, while Australia's S&P/ASX 200 was little changed. South Korea's Kospi lost nearly 0.1 percent. Hong Kong's Hang Seng was flat.

 

[bigdog]

https://www.usnews.com/news/busines...rkets-mixed-as-data-shows-china-growth-slowed

Last-Minute Rebound Lifts S&P 500, Dow Edge to New Highs
A last-minute surge nudged U.S. stocks indexes mostly higher Thursday, barely extending the market's winning streak and milestone-setting run.

By ALEX VEIGA, AP Business Writer

A last-minute surge nudged U.S. stock indexes mostly higher Thursday, barely extending the market's winning streak and milestone-setting run.

The Standard & Poor's 500 index and Dow Jones industrial average closed higher for the fifth straight day, each posting new highs. The other indexes finished slightly lower as investors continued to pore through the latest batch of company earnings.

Technology companies weighed on the market all day, but gains in health care stocks helped offset some of those losses.

"You have a lot of risk assets, especially equities, having done pretty well," said Sameer Samana, global quantitative strategist for Wells Fargo Investment Institute. "Some people are viewing now as a pretty good time to make sure they lock in some of that performance."

The S&P 500 index rose 0.84 points, or 0.03 percent, to 2,562.10. The Dow added 5.44 points, or 0.02 percent, to 23,163.04. The Nasdaq composite slid 19.15 points, or 0.3 percent, to 6,605.07. The Russell 2000 index of smaller-company stocks gave up 3.10 points, or 0.2 percent, to 1,502.04.

Slightly more stocks rose than declined on the New York Stock Exchange.

Investors bid up shares in drug manufacturers and other health care companies.

Envision Healthcare led the sector, vaulting $4.43, or 10.9 percent, to $45.08. Gilead Sciences rose $1.58, or 2 percent, to $81.59. A subsidiary of the drugmaker received approval this week to sell a new treatment for a form of blood cancer.

Medical equipment maker Danaher jumped 4.7 percent after it reported earnings that beat financial analysts' estimates and raised its outlook. The stock added $4.05 to $90.10.

Verizon Communications' latest quarterly results also impressed traders. The company said its wireless unit gained more mobile phone users than expected in its latest quarter. Its stock rose 56 cents, or 1.2 percent, to $49.21.


Adobe Systems surged 12.2 percent after the software maker issued a strong profit forecast for 2018. The stock was the biggest riser in S&P 500, climbing $18.73 to $171.73.

Other technology stocks didn't fare as well.

Apple had its worst day in two months amid investor concern that its recently launched iPhone 8 models are lagging in market share compared to prior iPhone models. The stock finished down $3.78, or 2.4 percent, at $155.98. Despite the slide, Apple is still up 34.7 percent this year.

The slide in Apple and other technology companies weighed on the market for much of the day. The sector, which is leading all other sectors in the S&P 500 with a gain of 30 percent this year, recovered some of its losses by late afternoon.

"The sector has had such a great run, but you're starting to see some concerns about how big they've gotten, some chatter in Washington about should there be some regulations," said Samana. "People are just content to take some money off the table."

While many more companies will be reporting third-quarter results in coming weeks, so far earnings have been largely positive. Some 75 S&P 500 companies have reported quarterly results so far, posting sales growth of about 6 percent and earnings gains of about 9 percent, Samana said.

Even so, quarterly report cards and outlooks from several companies failed to impress investors Thursday.

United Continental sank 12.1 percent after the parent of United Airlines said that weak prices will continue the rest of this year. The stock was the biggest decliner in the S&P 500, tumbling $8.21 to $59.78.


Auto parts retailer Genuine Parts slumped 8.5 percent after the company said costs rose and its quarterly profit fell short of Wall Street's estimates. The stock lost $8.33 to $89.71.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.31 percent from 2.35 percent late Wednesday.

Benchmark U.S. crude lost 75 cents, or 1.4 percent, to settle at $51.29 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 92 cents, or 1.6 percent, to $57.23 per barrel in London.

The slide in oil weighed on energy stocks. Schlumberger declined $1.41, or 2.1 percent, to $64.50.

In other energy trading, wholesale gasoline was little changed at $1.64 a gallon. Heating oil slipped 3 cents to $1.78 a gallon. Natural gas gained 2 cents to $2.87 per 1,000 cubic feet.

Gold rose $7 to $1,290 an ounce. Silver added 26 cents to $17.26 an ounce. Copper lost 1 cent to $3.17 a pound.

The dollar fell to 112.65 yen from 112.90 yen on Wednesday. The euro rose to $1.1830 from $1.1802.

Global stocks mostly declined Thursday following relatively weak Chinese economic growth data and rising tensions over Catalonia's bid for independence from Spain.

In Europe, Germany's DAX declined 0.4 percent, while France's CAC 40 fell 0.3 percent. Britain's FTSE 100 slid 0.3 percent. Asian markets finished mostly weaker. Japan's Nikkei 225 gained 0.4 percent, while South Korea's Kospi slipped 0.4 percent. Hong Kong's Hang Seng index slumped 1.9 percent.

 

[bigdog]

https://www.usnews.com/news/busines...rise-as-investors-await-japan-vote-fed-choice

US Stocks End Higher; S&P 500, Dow on 6-Week Winning Streak
Wall Street capped a week with no shortage of milestones with a few more Friday.

By ALEX VEIGA, AP Business Writer

Wall Street capped a week with no shortage of milestones with a few more Friday.

U.S. stocks closed modestly higher, lifting the Standard & Poor's 500 index to its fifth record close in a row. The Dow Jones industrial average, which crossed past the 23,000 mark for the first time on Wednesday, also finished the day with its fifth-straight all-time high.

Banks led the gainers Friday. Technology companies also posted big gains, helping to drive the Nasdaq composite to a record high.

The latest milestones came as investors drew encouragement from the Senate's passage of a budget bill that is expected to ease the path for the White House's tax cut proposal.

"Market expectations for an impactful tax reform have been running fairly low," said Mike Baele, managing director at U.S. Bank Private Wealth Management. "That changed a bit today with the Senate passing the budget resolution for 2018."

The S&P 500 index rose 13.11 points, or 0.5 percent, to 2,575.21. The Dow gained 165.59 points, or 0.7 percent, to 23,328.63. The Nasdaq composite added 23.99 points, or 0.4 percent, to 6,629.05. The Russell 2000 index of smaller-company stocks picked up 7.20 points, or 0.5 percent, to 1,509.25.

The S&P 500 and the Dow are now on a six-week winning streak.

President Donald Trump's plans to slash corporate taxes and make other business-friendly changes to the nation's tax laws have helped lift U.S. stocks in recent weeks. Under the administration's tax plan, the first major overhaul of the tax code in three decades, corporations would see their top tax rate cut from 35 percent to 20 percent.

On Thursday, the Senate narrowly passed a $4 trillion budget resolution that now goes to the House of Representatives. The bill sets the stage for tax legislation later this year that could pass through the Senate without the threat of a filibuster by Democrats. It also adds $1.5 trillion to the deficit over the next 10 years.


Should tax reform pass, it's also a good bet that interest rates will move higher, which will benefit banks and other financial companies. That's one reason banks and bond yields rose Friday.

Higher bond yields allow banks to charge higher interest rates on mortgages and other loans. The yield on the 10-year Treasury note rose to 2.38 percent from 2.32 percent late Thursday.

Synchrony Financial gained $1.33, or 4.2 percent, to $33.04. Citizens Financial Group picked up 90 cents, or 2.4 percent, to $38.33. Both also reported higher quarterly earnings than analysts had been expecting.

Technology sector companies also had a good day.

PayPal Holdings climbed 5.5 percent after the payment technology company reported big gains in new users and transactions. The stock rose $3.72 to $70.97.

While still early in the third-quarter earnings season, strong earnings helped push the market higher this week.

Just under 12 percent of S&P 500 companies have released quarterly results through Friday. Of those, 78 percent reported earnings and revenue that beat financial analysts' estimates, according to S&P Global Market Intelligence.

"Companies have been able to, once again, beat expectations up to this point," said Baele. "The combination of strong economic data, good earnings and now the prospect of fiscal stimulus is really helping to support equities."

Shares in several companies made big moves Friday after traders reviewed their latest quarterly results.


Skechers USA soared 41.4 percent after the shoe company said that its profit and sales were stronger than analysts expected. The stock rose $9.96 to $33.99.

Atlassian jumped $9.92, or 24.6 percent, to $50.17. The business software company's earnings and revenue beat Wall Street's forecasts. It also raised its forecast.

Semiconductor company Maxim Integrated also posted better-than-expected results. Its stock rose $2, or 4 percent, to $52.09.

General Electric bounced back after the industrial conglomerate slashed its annual forecast and reported a disappointing third quarter. The stock gained 25 cents, or 1.1 percent, to $23.83.

Other companies put traders in a selling mood with their latest quarterly results or outlooks didn't recover. NCR gave up 10.8 percent after the company cut its annual revenue forecast and said orders for ATMs were weaker than it expected. Its shares lost $4 to $33.05.

Oil prices closed higher after wavering between small gains and losses for much of the day.

Benchmark U.S. crude added 18 cents to settle at $51.47 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 52 cents to $57.75 a barrel in London.

The gains helped lift most of the energy companies in the S&P 500. Helmerich & Payne climbed $1.06, or 2.1 percent, to $52.

In other energy trading, wholesale gasoline rose 3 cents to $1.68 a gallon. Heating oil picked up 3 cents to $1.81 a gallon. Natural gas gained 4 cents to $2.92 per 1,000 cubic feet.

Gold fell $9.50 to $1,280.50 an ounce. Silver lost 18 cents to $17.09 an ounce. Copper was little changed at $3.17 a pound.

The dollar strengthened to 113.50 yen from 112.65 yen on Thursday. The euro fell to $1.1780 from $1.1830.


Major stock indexes overseas were mixed Friday.

In Europe, Germany's DAX and the FTSE 100 index of leading British shares finished flat. The CAC 40 in France added 0.1 percent. In Asia, Japan's benchmark Nikkei 225 finished less than 0.1 percent higher ahead of parliamentary elections on Sunday. Prime Minister Shinzo Abe's party is expected to retain a comfortable lead.

Elsewhere, South Korea's Kospi added 0.7 percent, while Hong Kong's Hang Seng index rebounded 1.2 percent after a big sell-off the day before.

4693

 

[bigdog]

https://www.usnews.com/news/busines...-on-japanese-ruling-party-win-most-of-asia-up

US Stocks Skid as GE Tumbles and Technology Companies Fall

US stocks are falling as General Electric takes a sharp loss and pulls industrial firms down while technology companies also slump.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Industrial and technology companies and retailers all stumbled Monday as U.S. stocks began the week with losses. General Electric suffered its worst one-day loss in six years following downgrades from analysts.

After a mixed start, stocks turned lower in afternoon trading. GE's struggles weighed on industrial companies, while big technology companies liked Facebook and Alphabet sank. Toy companies Hasbro and Mattel tumbled after Hasbro's sales forecast disappointed Wall Street and familiar consumer companies like Amazon and McDonald's also slumped. Investors did far more selling than buying as a seven-day winning streak ended. It was the worst day for stocks in about seven weeks, but it was still a fairly small decline, as almost nothing has seriously rattled investors this year.

"We have never seen the level of calm and the level of strength combined that we've seen," said Mark Hackett, chief of investment research at Nationwide Investment Management. "Investors are kind of willing to just trust it."

Hackett said it's very unusual that stocks have continued to rise without any big sell-offs, but he doesn't see it as a problem. That's because major economies like the U.S., Europe and China have all been growing for more than a year, which isn't likely to end soon.

The Standard & Poor's 500 index lost 10.23 points, or 0.4 percent, to 2,564.98. The Dow Jones industrial average fell 54.67 points, or 0.2 percent, to 23,273.96. The Nasdaq composite dropped 42.23 points, or 0.6 percent, to 6,586.83. The Russell 2000 index of smaller-company stocks sank 11.75 points, or 0.8 percent, to 1,497.49.

General Electric took its biggest single-day loss since August 2011 after analysts at UBS and Morgan Stanley lowered their ratings on its stock. GE stock has been slumping all year, but it had edged higher Friday as investors reacted positively to the conglomerate's third-quarter results. Analysts were less optimistic Monday, as Christopher Belfiore of UBS cut his 2018 and 2019 profit estimates for GE and said it's likely to reduce its dividend payments.

The stock fell $1.51, or 6.3 percent, to $22.32. It's down 29 percent this year.

Other industrial firms also took losses. Equipment rental company United Rentals lost $2.92, or 2 percent, to $141.48. Arconic, which makes aluminum parts for the aerospace and other industries, fell $2.52, or 9.2 percent, to $24.65 after it disclosed a smaller-than-expected profit and named former GE executive Charles Blankenship as its next CEO.

Hasbro tumbled after its sales forecast fell short of Wall Street estimates. The company said the recent bankruptcy of Toys R Us hurt its business. Its stock gave up $8.44, or 8.6 percent, to $89.75 and competitor Mattel fell 51 cents, or 3.2 percent, to $15.46.

Other consumer-focused companies also declined. Under Armour fell 63 cents, or 3.6 percent, to $16.85 after the Wall Street Journal reported that co-founder Kip Fulks' plans to take a sabbatical from the company, and that Under Armour may exit its camping and hiking apparel business. Amazon slipped $16.63, or 1.7 percent, to $966.30.

The S&P closed at an all-time high every day last week. According to S&P Dow Jones indices, that hadn't happened since March 1998. Hackett, of Nationwide Investments, said the steady rally over last year has been similar to the market's rally in 1994-95, when the U.S. was recovering from the early '90s recession and pro-business Republicans took control of Congress. He noted that that calm stretch did not end in a market crash.

Several companies struck deals over the weekend. Communications software maker BroadSoft agreed to be bought by Cisco Systems for $55 a share, or $1.9 billion. The stock added 90 cents, or 1.7 percent, to $54.80. It has climbed 27 percent since Aug. 29, when reports said BroadSoft was considering a sale. Cisco rose 10 cents to $34.35.

Aetna will sell its U.S. group life and disability insurance businesses to Hartford Financial Services for $1.45 billion. Hartford, which also reported its third-quarter results on Monday, fell $2.43, or 4.3 percent, to $54.06. Aetna gained 63 cents to $161.47.

Bond prices edged higher. The yield on the 10-year Treasury note slid to 2.37 percent from 2.38 percent.

Benchmark U.S. crude added 6 cents to $51.90 a barrel in New York. Brent crude, used to price international oils, lost 38 cents to $57.37 a barrel in London.

Wholesale gasoline stayed at $1.68 a gallon. Heating oil lost 2 cents to $1.79 a gallon. Natural gas jumped 8 cents, or 2.6 percent, to $2.99 per 1,000 cubic feet.

Gold inched up 40 cents to $1,280.90 an ounce. Silver remained at $17.08 an ounce. Copper rose 2 cents to $3.19 a pound.

The dollar rose to 113.73 yen from 113.50 yen. The euro fell to $1.173 from $1.1780.

The CAC 40 in France rose 0.3 percent and Germany's DAX rose 0.1 percent. In Britain, the FTSE 100 was little changed.

Japan's benchmark Nikkei 225 jumped 1.1 percent after Prime Minister Shinzo Abe's ruling Liberal Democratic Party scored a win in the nationwide parliamentary election Sunday. The South Korean Kospi finished little changed and Hong Kong's Hang Seng fell 0.6 percent.

 

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Banks, Caterpillar and Industrial Companies Boost US Stocks

US stocks rise as banks, industrial and technology companies move higher, and big gains from Caterpillar and 3M take the Dow Jones industrial average to a record high.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Construction and mining equipment maker Caterpillar and Post-it note maker 3M led a rally in industrial companies Tuesday after they made strong third-quarter reports. Other U.S. stocks finished the day with smaller gains.

Caterpillar and 3M both raised their forecasts for the rest of the year after they did better than analysts had expected, and their stocks jumped. Combined the two companies were responsible for almost all of the 167-point gain in the Dow Jones industrial average, which sent the 30-stock index to a record high. Bond yields and interest rates rose, which helped banks, and technology companies climbed as well. Investors applauded reports from McDonald's and General Motors while health care companies including drugmakers stumbled. Household goods makers also declined.

UBS analyst Steven Fisher said he thinks Caterpillar, as well as other companies that make construction and mining equipment, are benefiting from gains in metals and oil prices over the last year to year-and-a-half.

"There's now a catch-up to not only meet the demand but also replenish inventories," he said. That delayed reaction helped Caterpillar in the third quarter and he said investors have high expectations for other machinery makers.

The Standard & Poor's 500 index gained 4.15 points, or 0.2 percent, to 2,569.13. The Dow Jones industrial average jumped 167.80 points, or 0.7 percent, to 23,441.76. The Nasdaq composite climbed 11.60 points, or 0.2 percent, to 6,598.43. The Russell 2000 index of smaller-company stocks added 2.93 points, or 0.2 percent, to 1,500.42.

Caterpillar's revenue from construction equipment climbed, and the company said it's getting strong demand for oil and gas machinery in North America and construction equipment in China. Its stock gained $6.56, or 5 percent, to $138.24, and it's up 49 percent in 2017. 3M, best known for Post-it notes, said its industrial, electronics and energy and health care businesses all got stronger and it expects a larger annual profit. It added $13.10, or 5.9 percent, to $234.65.

Caterpillar and 3M are two of the biggest winners in the Dow average this year. The top gainer is aerospace company Boeing, which rose $3.68, or 1.4 percent, to $266, giving it a 71-percent jump since the start of the year.

Bond prices continued to fall. The yield on the 10-year Treasury note rose to 2.42 percent from 2.37 percent and reached its highest level in five months. That helped banks, as higher interest rates boost their profits on lending. Bank of America gained 52 cents, or 1.9 percent, to $27.68 and JPMorgan Chase rose $1.58, or 1.6 percent, to $100.92.

Technology companies recovered most of Monday's losses. Specialty glass maker Corning jumped $1.93, or 6.4 percent, to $31.94 after its third-quarter report surpassed what Wall Street expected. Oracle rose 67 cents, or 1.4 percent, to $49.98 and video game maker Activision Blizzard added $1.27, or 2.1 percent, to $62.73.

Appliance maker Whirlpool had a weak quarter as costs were high and the company struggled to integrate European businesses it's bought over the last few years. Whirlpool also slashed its profit forecast for the year and its stock sank $19.24, or 10.5 percent, to $163.26.

Meanwhile Whirlpool's more than century-old ties to department store Sears are ending. Sears says it is no longer selling Maytag appliances or other Whirlpool products at its stores. Whirlpool said it told Sears months ago that it would stop supplying branded products for the chain to sell because the companies couldn't agree on terms. Sears lost 57 cents, or 8.7 percent, to $5.99.

Health care companies took losses. Drugmaker Biogen fell $12.82, or 3.9 percent, to $315.73 as sales of its multiple sclerosis drugs Tecfidera and Tysabri disappointed analysts. Eli Lilly sank $2.01, or 2.3 percent, to $85.17. The company posted a solid third quarter, but said diabetes drug prices are still under pressure. Lilly also said it may sell its Elanco animal health unit. That business had been an important part of Lilly's strategy as important older drugs like Zyprexa and Cymbalta lost patent protection.

Drugmakers AbbVie and Celgene and health care products maker Johnson & Johnson also fell.

Benchmark U.S. crude gained 57 cents, or 1.1 percent, to $52.47 a barrel in New York. Brent crude, used to price international oils, climbed 96 cents, or 1.7 percent, to $58.33 a barrel in London.

Wholesale gasoline rose 4 cents to $1.72 a gallon. Heating oil added 3 cents to $1.82 a gallon. Natural gas slipped 2 cents to $2.97 per 1,000 cubic feet.

Gold fell $2.60 to $1,278.30 an ounce. Silver lost 11 cents to $16.97 an ounce. Copper gained 1 cent to $3.20 a pound.

The dollar edged down to 113.58 yen from 113.73 yen. The euro rose to $1.1788 from $1.1738.

Germany's DAX rose 0.1 percent and the French CAC-40 gained 0.1 percent. The FTSE 100 in London finish little changed. Tokyo's Nikkei 225 rose for the 16th day in a row, which extended a post-World War II record. The index added 0.5 percent. The Hang Seng in Hong Kong lost 0.5 percent and Seoul's Kospi was unchanged.

 

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Weak Earnings and Rising Bond Yields Send US Stocks Down

US stocks sink on weak quarterly results from a variety of different industries, with the steepest drops going to technology companies and industrial firms.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Rising bond yields and a string of weak company reports and forecasts pushed stocks lower Wednesday as major indexes retreated from their recent record highs. Industrial and technology companies and banks fared the worst.

Companies including telecom giant AT&T, aerospace company Boeing, chipmaker Advanced Micro Devices and credit card issuer Discover Financial Services all gave shaky results, disappointing forecasts, or both. That sent stocks downward, and in early afternoon trading the Dow Jones industrial average fell as much as 190 points, after setting a record the day before. Stocks recovered some of their losses in afternoon trading, but all 11 industry sectors in the Standard & Poor's 500 index finished the day lower.

Bond yields jumped to seven-month highs after a report from the Commerce Department showed orders for long-lasting manufactured goods and business investment grew in September. That's good news for the economy, but it actually hurt stocks Wednesday, said Sam Stovall, chief investment strategist at CFRA Equity Research, because it might lead to greater inflation.

"Higher yields (and) a string of positive returns from the market combined with some weak earnings numbers gave investors some reasons to attempt to take profits," he said. Stocks have risen for each of the last six weeks and repeatedly set new highs.

The S&P 500 shed 11.98 points, or 0.5 percent, to 2,557.15. The Dow Jones industrial average fell 112.30 points, or 0.5 percent, to 23,329.46. The Nasdaq composite sank 34.54 points, or 0.5 percent, to 6,563.89. The Russell 2000 index, which is comprised of smaller-company stocks, dropped 6.94 points, or 0.5 percent, to 1,493.48.

The Commerce Department said orders for long-lasting manufactured goods rose 2.2 percent last month, much more than analysts expected. Much of the improvement came from greater sales of commercial aircraft. A key category that tracks business investment grew for the third month in a row.

Despite the gains in aircraft sales, a solid third-quarter report and a boost in its profit forecast, Boeing stock slumped $7.58, or 2.8 percent, to $258.42 Wednesday. It's almost doubled in value in the last 12 months. Elsewhere in the industrial sector, defense contractor General Dynamics lost $4.83, or 2.3 percent, to $207.25. The company's technology and marine systems businesses reported lower sales compared to a year ago, falling far short of estimates.

General Electric declined for the third day in a row and finished at a four-and-a-half-year low as it lost 39 cents, or 1.8 percent, to $21.50.

Chipmaker Advanced Micro Devices dropped $1.92, or 13.5 percent, to $12.33 after its fourth-quarter forecasts disappointed investors. Network equipment maker Juniper Networks also issued a mediocre forecast and its stock lost $1.60, or 6.1 percent, to $24.56.

Bond prices fell again. The yield on the 10-year Treasury note rose to 2.44 percent from 2.42 percent. That put pressure on companies that pay large dividends, like telecommunications companies, utilities, and food and beverage makers. Those stocks tend to do better when bond yields are down, as that makes the stocks more attractive to investors who are looking for income.

Many of those companies were hurt by weak results as well. AT&T lost $1.37, or 3.9 percent, to $33.49 after it reported a smaller profit and less revenue than Wall Street expected in the third quarter. Dr Pepper Snapple tumbled $4.19, or 4.7 percent, to $85.52. The 7UP maker's profit and sales were weaker than expected. It cut its profit forecast for the year because of higher costs as well as expenses from its purchase of energy drink maker Bai Brands.

While rising bond yields and interest rates usually help bank stocks, that was canceled out by disappointing earnings reports. Discover Financial Services lost $2.24, or 3.3 percent, to $65.15 as the credit card issuer and lender set aside more money to cover potential losses on bad loans. Regional bank Huntington Bancshares fell 33 cents, or 2.4 percent, to $13.88.

Benchmark U.S. crude shed 29 cents to $52.18 a barrel in New York. Brent crude, used to price international oils, rose 11 cents to $58.44 per barrel in London.

Wholesale gasoline rose 2 cents to $1.73 a gallon. Heating oil remained at $1.82 a gallon. Natural gas fell 6 cents to $2.92 per 1,000 cubic feet.

Gold inched up 70 cents to $1,279 an ounce. Silver lost 4 cents to $16.93 an ounce. Copper fell 2 cents to $3.18 a pound.

The dollar rose to 113.72 yen from 113.58 yen. The euro edged up to $1.1807 from $1.1788. The British pound rose to $1.3255 from $1.3136.

Britain's FTSE 100 dipped 1.1 percent as investors felt a stronger-than-expected report on economic growth makes it more likely the Bank of England will raise interest rates next month. France's CAC 40 fell 0.4 percent and the DAX in Germany lost 0.5 percent.

The Nikkei 225 index fell 0.5 percent as a 16-day winning streak for Japanese stocks came to an end. The index rose 7.2 percent over that period, its longest winning streak since World War II. The South Korean Kospi added 0.1 percent and Hong Kong's Hang Seng gained 0.5 percent.

 

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Banks and Tech Companies Help Stocks Higher; Drugmakers Dive
US stocks rise as banks climb along with interest rates and technology companies bounce back from the previous day's losses.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks rose Thursday as gains for technology companies and banks helped the market recover some of its losses from earlier in the week. However drugmakers and distributors tumbled.

The European Central Bank said Thursday it will begin gradually reducing the bond purchases it's been making to strengthen the regional economy. Investors were glad the bank isn't being more aggressive. The euro weakened and European stock indexes jumped. Technology companies recovered some of the ground they lost a day ago, and banks and credit card companies jumped as bond yields continued to climb.

Drugmakers sank after Celgene and Bristol-Myers Squibb slashed their forecasts. Late in the day, drugstores and companies that distribute medications sank on reports Amazon is taking steps to move into the pharmaceutical business by getting licenses to distribute medications wholesale.

For years the European Central Bank has bought bonds to help strengthen the region's economy. Starting in January the bank plans to cut the size of its purchases in half, to 30 billion euros a month.

Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said investors were relieved the bank did not announce a bigger cut in bond purchases or take more aggressive steps.

"The market was a little bit fearful that the ECB was going to be more hawkish," he said. "That wasn't the case."

The Standard & Poor's 500 index rose 3.25 points, or 0.1 percent, to 2,560.40. The Dow Jones industrial average gained 71.40 points, or 0.3 percent, to 23,400.86. The Nasdaq composite lost 7.12 points, or 0.1 percent, to 6,556.77. The Russell 2000 index of smaller-company stocks added 3.98 points, or 0.3 percent, to 1,497.46.

France's CAC-40 jumped 1.5 percent and the DAX in Germany gained 1.4 percent. Britain's FTSE 100 added 0.5 percent.

The euro fell to $1.1657 from $1.1807 as investors think interest rates in Europe will stay lower for longer than they had expected. The weaker euro helped shares of companies that export goods from Europe.

Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.46 percent from 2.44 percent as yields and interest rates remained at seven-month highs. Higher rates mean banks can make larger profits from mortgages and other lending. SunTrust Banks rose 83 cents, or 1.4 percent, to $60.61 and American Express jumped $2.16, or 2.3 percent, to $95.69.

And Wren, of Wells Fargo, said the ECB and the Federal Reserve might both end up raising interest rates faster than investors currently expect. Concerns about higher interest rates helped push stocks lower on Wednesday and Wren said the same fears could have a big effect on stocks in 2018.

"The market should be worried about the Fed raising rates three times next year, like they've hinted," he said.

Drugmaker Celgene plunged after it reduced its forecasts for this year, partly because it expects weaker sales of its new psoriasis treatment Otezla. Celgene also said it won't meet its longer-term goals: it cut its profit and sales projections for the year 2020 as it anticipates weaker sales of new products and medications to treat cancer and inflammation.

Celgene stock lost $19.57, or 16.4 percent, to $99.99. Bristol-Myers Squibb lost $3.05, or 4.8 percent, to $60.95 after it reduced its annual forecast. Other drugmakers including Amgen and Gilead Sciences also stumbled.

Materials companies climbed after a round of strong company results. Chemicals maker Dow DuPont jumped $1.96, or 2.8 percent, to $73.05 and industrial and medical gas company Air Products and Chemicals gained $6.80, or 4.4 percent, to $161.39.

Drugstores, prescription drug distributors and pharmacy benefits managers sank after the St. Louis Post-Dispatch reported that Amazon has received wholesale pharmacy licenses in at least 12 states, the latest suggestion the company intends to enter that market. Investors in those companies fear Amazon will slash prices and hurt their revenue.

Walgreens fell $2.25, or 3.2 percent, to $67.11. McKesson, which rose as much as 7.4 percent in early trading after its quarterly report, wound up with a loss of $7.84, or 5.2 percent, to $143.54. Pharmacy benefits management company Express Scripts shed $2.23, or 3.6 percent, to $58.93.

Amazon reported its third-quarter results after the close of trading. Its stock rose 8 percent after its profit and sales surpassed analysts' estimates.

CVS Health tumbled $2.22, or 2.9 percent, to $74.31. Minutes before the close of trading, the Wall Street Journal reported that the drugstore-pharmacy benefits company is in talks to buy health insurer Aetna. Aetna stock jumped $18.48, or 11.5 percent, to $178.60.

Benchmark U.S. crude added $52.64 a gallon in New York. Brent crude, used to price international oils, rose 86 cents, or 1.5 percent, to $59.30 a barrel in London.

Wholesale gasoline rose 2 cents to $1.75 a gallon. Heating oil picked up 2 cents to $1.84 a gallon. Natural gas fell 3 cents to $2.89 per 1,000 cubic feet.

Gold gave up $9.40 to $1,269.60 an ounce. Silver fell 11 cents to $16.81 an ounce. Copper lost 1 cent to $3.18 a pound.

Japan's benchmark Nikkei 225 index edged 0.2 percent higher while South Korea's Kospi dipped 0.5 percent. The Hang Seng in Hong Kong slipped 0.4 percent.

The dollar rose to 114 yen from 113.72 yen.

 

[bigdog]

https://www.washingtonpost.com/busi...97043e57a22_story.html?utm_term=.cab77ce85cf8

Tech giants lead rally as stocks near records; Amazon surges

By Marley Jay | AP October 27 at 5:06 PM
NEW YORK — Some of the biggest companies in the world had their best day in years Friday as Microsoft and Alphabet soared following strong third-quarter reports, as did online retail giant Amazon. U.S. stocks set more records as their winning streak extended to a seventh week.

Intel made its biggest gains in three years, while Microsoft had its biggest jump in two years and Alphabet, Google’s parent company, made its largest move in more than a year after each company’s results were better than Wall Street expected. Amazon jumped 13 percent, its biggest move in two and a half years, after it got a big boost from its latest “Prime Day” promotion and the purchase of the Whole Foods grocery store chain.

“The transition to cloud computing really played a role in all of those tech results to some extent,” said Brad Sorensen, the director of market and sector analysis for the Schwab Center for Financial Research. Technology companies get a lot of their profits outside the U.S. compared to other industries, so the improving global economy is helping them more.

Other stocks were mixed: retailers fell after J.C. Penney cut its annual forecasts. Drugstores, drugmakers, health care suppliers and pharmaceutical distributors and retailers fell.

The Standard & Poor’s 500 index rose 20.67 points, or 0.8 percent, to 2,581.07. The Dow Jones industrial average made a comparatively modest gain of 33.33 points, or 0.1 percent, to 23,434.19 as drugmaker Merck and oil company Chevron skidded after their third-quarter reports. The Nasdaq composite made its biggest gain since November as it soared 144.49 points, or 2.2 percent, to 6,701.26. The Russell 2000 index of smaller-company stocks picked up 10.86 points, or 0.7 percent, to 1,508.32.

The S&P 500 and Nasdaq finished at all-time highs. The S&P 500 also rose for the seventh consecutive week, something that hadn’t happened since late 2014.

Alphabet climbed $42.25, or 4.3 percent, to $1,033.67 and Microsoft soared $5.05, or 6.4 percent, to $83.81. Intel, the world’s biggest chipmaker, jumped $3.05, or 7.4 percent, to $44.40 after a positive fourth-quarter estimate.

Elsewhere Facebook rose $7.25, or 4.2 percent, to $177.88, its largest gain August 2015. Apple advanced $5.64, or 3.6 percent, to $163.05.

Amazon posted strong results and gave an optimistic outlook for the holiday season. Its stock jumped $128.52, or 13.2 percent, to $1,100.95.

Apple, Alphabet, Microsoft, Amazon and Facebook are the five most valuable companies on the S&P 500, and with investors clamoring to send them higher, Wall Street didn’t pay quite as much attention to some strong economic data. The Commerce Department estimated that the U.S. economy grew 3 percent between July and September even though the country was hit by two major hurricanes. That was better than analysts had anticipated.

Aside from those giant companies, stocks were mixed. J.C. Penney fell to an all-time low after it cut its profit forecast, saying it’s been lowering prices to try clearing out unsold goods. Its stock lost 54 cents, or 14.8 percent, to $3.12. Other retailers like Macy’s and Foot Locker tumbled as well.

Toy maker Mattel plunged after the company posted a huge third-quarter loss and said it will slash spending and stop paying quarterly dividends. The stock lost $1.37, or 8.9 percent, to $14.

Drugstores and prescription drug distributors fell for a second day following reports that Amazon is receiving state licenses allowing it to do business as a prescription drug wholesaler. Walgreens Boots Alliance lost $2.63, or 3.9 percent, to $64.48 and pharmaceutical distributor McKesson lost $7.92, or 5.5 percent, to $135.62.

However, Jefferies and Co. analyst Brian Tanquilut wrote that Amazon appears to have taken out licenses to sell medical equipment, not drugs. He said the company may stick to medical devices and over-the-counter medicines for now, because in order to distribute prescription drugs Amazon would need to establish relationships with pharmacy benefits managers and health insurers.

Benchmark U.S. crude reached a six-month high as it jumped $1.26, or 2.4 percent, to $53.90 a barrel in New York. Brent crude, used to price international oils, rose $1.14, or 1.9 percent, to a two-year high of $60.44 a barrel in London.

Wholesale gasoline rose 2 cents to $1.77 a gallon. Heating oil gained 2 cents to $1.84 a gallon. Natural gas tumbled 14 cents, or 4.8 percent, to $2.75 per 1,000 cubic feet.

Bond prices jumped. The yield on the 10-year Treasury note fell to 2.41 percent from 2.46 percent, a seven-month high.

Gold rose $2.20 to $1,271.80 an ounce. Silver slid 6 cents to $16.75 an ounce. Copper lost 7 cents to $3.10 a pound.

The dollar fell to 113.81 yen from 114 yen. The euro slid to $1.1599 from $1.1657.

Germany’s DAX climbed 0.6 percent and the CAC 40 of France gained 0.7 percent. In Britain, the FTSE 100 rose 0.2 percent. The Spanish Ibex sank 1.5 percent after Catalonia’s regional parliament voted to secede from Spain, adding new tensions to the disagreement between the region and the central government in Madrid. Catalonia, which includes Barcelona, accounts for a fifth of the Spanish economy and Spain is deeply set against allowing it to become independent.

The Nikkei 225 of Japan jumped 1.2 percent and South Korea’s Kospi advanced 0.6 percent. Hong Kong’s Hang Seng index surged 0.8 percent.

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