Dow, S&P 500 end week at records; dol­lar tum­bles

Kuwait Times - - BUSINESS -

NEW YORK: Wall Street stocks fin­ished at fresh records Fri­day fol­low­ing solid bank earn­ings, while the dol­lar re­treated af­ter lack­lus­ter US data raised ques­tions about ad­di­tional Fed­eral Re­serve rate hikes. The Dow and S&P 500 ended at fresh records in an­tic­i­pa­tion that teh pos­i­tive bank re­sults fore­shadow a gen­er­ally strong earn­ings pe­riod. The records, the third in a row for the Dow, capped a strong week for US stocks that some an­a­lysts at­trib­uted to com­men­tary from Fed Chief Janet Yellen that was more dovish than ex­pected.

Eq­uity mar­kets else­where were mixed, with Lon­don and Frank­furt down, Tokyo up and Paris flat. JPMor­gan Chase, Cit­i­group and Wells Fargo all re­ported higher earn­ings than ex­pected by Wall Street an­a­lysts, show­ing the ben­e­fits of higher US in­ter­est rates, de­spite a drop in rev­enue from trad­ing di­vi­sions. How­ever, share prices for all three banks fell, with JPMor­gan los­ing 0.9 per­cent, Cit­i­group 0.4 per­cent and Wells Fargo 1.1 per­cent.

“The fact that the banks started off the earn­ings sea­son with very good earn­ings will bode well,” said Bill Lynch, direc­tor of in­vest­ment at Hins­dale Associates. “Most strate­gists ex­pect the sea­son to be a good one with earn­ings go­ing up at least six per­cent, maybe as much as nine per- cent.” On for­eign ex­changes, the dol­lar strug­gled af­ter dis­ap­point­ing US in­fla­tion and re­tail sales data for June, fall­ing against the pound and the euro. “The morn­ing’s data, par­tic­u­larly the cooler than ex­pected CPI fig­ures, seem to jus­tify Fed Chair Janet Yellen’s more cau­tious tone this week in her Con­gres­sional tes­ti­mony,” said Omer Esiner, an­a­lyst at Com­mon­wealth For­eign Ex­change.

“The lack of mean­ing­ful ev­i­dence of a strong re­bound in the econ­omy in the sec­ond half of this year could con­tinue to keep the dol­lar pres­sured.” Oil prices rose for the fifth straight day amid signs of greater bal­ance be­tween sup­ply and de­mand.—AFP

NEW YORK: Traders work on the floor at the clos­ing bell of the Dow In­dus­trial Av­er­age at the New York Stock Ex­change in New York.—AFP

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