Wall Street opens flat as rough week draws to a close

Pakistan Observer - - ECONOMY WATCH -

NEW YORK—Wall Street opened higher for the fourth straight day as in­creased prospects of cen­tral bank stim­u­lus around the world bol­stered in­vestor con­fi­dence. In­vestors were also tak­ing stock of their hold­ings af­ter a tu­mul­tuous week in the wake of Bri­tain’s vote to leave the Euro­pean Union. The vote sparked a two-day panic sell­off, but mar­kets clawed back their losses in the last three days. Wall Street opened higher for the fourth straight day as in­creased prospects of cen­tral bank stim­u­lus around the world bol­stered in­vestor con­fi­dence.

In­vestors were also tak­ing stock of their hold­ings af­ter a tu­mul­tuous week in the wake of Bri­tain’s vote to leave the Euro­pean Union. The vote sparked a two-day panic sell­off, but mar­kets clawed back their losses in the last three days. The re­cov­ery rally was sup­ported by Bank of Eng­land Gover­nor Mark Car­ney’s com­ments on Thurs­day that raised the pos­si­bil­ity of in­ter­est rate cuts to support the Bri­tish econ­omy. “I think we are go­ing to have a slow drift up,” said Brad McMil­lan, chief in­vest­ment of­fi­cer of Com­mon­wealth Fi­nan­cial Net­work in Mas­sachusetts. “Ev­ery­body is at the beach al­ready and I don’t ex­pect a lot of ac­tion, in the ab­sence of some kind of mar­ket-mov­ing in­for­ma­tion.”

U.S. stock ex­changes will be closed on Mon­day for the U.S. In­de­pen­dence Day hol­i­day. At 9:37 a.m. ET (1337 GMT), the Dow Jones In­dus­trial Av­er­age .DJI was up 12.84 points, or 0.07 per­cent, at 17,942.83, the S&P 500 .SPX was up 2.37 points, or 0.11 per­cent, at 2,101.23 and the Nas­daq Com­pos­ite .IXIC was up 10.13 points, or 0.21 per­cent, at 4,852.80. Six of the 10 ma­jor S&P in­dexes were higher, with the con- sumer dis­cre­tionary sec­tor’s .SPLRCD 0.46 per­cent rise lead­ing the gain­ers. Yields on gov­ern­ment bonds slipped around the world. The yield on the U.S. 30-year Trea­sury bond fell be­low 2.20 per­cent in overnight trad­ing, its low­est level in at least six decades. Long-term Trea­sury yields fell to around 2 per­cent in the 1950s, ac­cord­ing to Bank of Amer­ica Mer­rill Lynch re­search.

Fi­nan­cials .SPSY fell 0.45 per­cent and were the worst per­form­ers. Bank of Amer­ica (BAC.N) and Wells Fargo were among the top losers on the S&P 500. The In­sti­tute for Sup­ply Man­age­ment (ISM) said its in­dex of na­tional fac­tory ac­tiv­ity rose to 53.2 from 51.3 the month before. The read­ing was above ex­pec­ta­tions of 51.4 from a Reuters poll. Data showed Chi­nese man­u­fac­tur­ing ac­tiv­ity stalled in June, bod­ing ill for the global econ­omy but rais­ing ex­pec­ta­tions of stim­u­lus to boost the world’s sec­ond-largest econ­omy. Mi­cron (MU.O) fell 9.2 per­cent to $12.50 in early trade af­ter the chip­maker re­ported dis­ap­point­ing quar­terly sales and fore­cast and said it would cut jobs.

Tesla (TSLA.O) fell 2.2 per­cent to $207.50 af­ter a fatal ac­ci­dent in­volv­ing a Model S car op­er­at­ing in au­topi­lot mode prompted in­ves­ti­ga­tion by U.S. fed­eral high­way safety reg­u­la­tors. Qual­comm (QCOM.O) fell 1 per­cent af­ter Ever­core down­graded its shares to “hold” from “buy”.Ad­vanc­ing is­sues out­num­bered de­clin­ers on the NYSE by 1,969 to 686. On the Nas­daq, 1,388 is­sues rose and 807 fell. The S&P 500 in­dex showed 74 new 52-week highs and no new lows, while the Nas­daq recorded 45 new highs and 3 new lows.—Reuters

NEW YORK: Traders work on the floor of the New York Stock Ex­change in New York City, US.

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