US stocks decline amid concern over Italy election
TEL AVIV The benchmark TA-25 index rose 0.2 percent at the close in Tel Aviv on Monday. WALL STREET Stocks declined, erasing an early advance, after partial election results spurred concern about prospects for a stable government in Italy.
Chesapeake Energy Corp. slumped 5.4% after agreeing to sell a stake in an Oklahoma oil field to China Petrochemical Corp. for less than one-third of its estimated value. ITT Educational Services Inc. tumbled 14% after disclosing that US regulators subpoenaed documents related to private loan programs for its students. Hertz Global Holdings Inc., the largest publicly traded US auto-rental chain, gained 4.2% after projecting profit and sales that beat estimates.
The Standard & Poor’s 500 Index retreated 0.7% to 1,504.31 at 2:52 p.m. in New York, after gaining as much as 0.7% earlier. The Dow Jones Industrial Average decreased 80.18 points, or 0.6%, to 13,920.39.
“We don’t want to see more chaos out of Europe,” Bruce McCain, chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said in a phone interview. His firm oversees more than $20 billion. “Any question about whether or not Italy would be committed to austerity measures after the elections gets investors concerned.” EUROPE UK stocks climbed for a second day as investors assessed conflicting polls for evidence that Italy will get a government committed to economic reform, while Moody’s Investors Service downgraded Britain’s debt rating.
The FTSE 100 increased 19.67 points, or 0.3%, to 6,355.37 at the close in London, after earlier rising as much as 0.9%. The equity benchmark is still headed for its ninth consecutive monthly advance, its longest stretch of gains since 1997. The gauge has rallied 7.8% this year after US lawmakers agreed on a compromise federal budget. The broader FTSE All-Share Index also added 0.3%, while Ireland’s ISEQ Index advanced 0.4%. ASIA Stocks rose, extending last week’s advance, as Japanese shares led gains on speculation the next Bank of Japan governor will deploy aggressive monetary easing. Hong Kong developers fell after the city doubled taxes on some property transactions.
Japan’s Nikkei 225 Stock Average jumped 2.3% for its highest close since September 2008. Australia’s S&P/ASX 200 Index climbed 0.8%, New Zealand’s NZX 50 gained 0.3%, South Korea’s Kospi Index fell 0.5%, Hong Kong’s Hang Seng Index added 0.2% and China’s Shanghai Composite Index climbed 0.5% (Bloomberg)