Stocks open mostly lower on Wall Street
Tesla jumps 9.8 pct, closing above $500 for the first time
NEW YORK, Jan 14, (AP): Stocks are off to a mostly lower start on Wall Street as losses for some banks and healthcare companies offset gains elsewhere in the market. Wells Fargo slumped in early trading Tuesday after reporting a sharp drop in profit in its latest quarter. Other banks including JPMorgan Chase rose.
Delta Air Lines rose after reporting higher earnings. The S&P 500 fell 4 points, or 0.1%, to 3,284. The Dow Jones Industrial Average edged up 20 points, or 0.1%, to 28,926. The Nasdaq fell 11 points, or 1%, to 9,262. Bond prices rose. The yield on the 10-year Treasury slipped to 1.83%.
Global stocks mostly edged lower on Tuesday as investors looked to the signing of a trade deal between the US and China as well as upcoming corporate earnings reports.
France’s CAC 40 was down 0.3% at 6,015, while Germany’s DAX shed 0.2% to 13,429. while. Britain’s FTSE 100 dropped 0.2% as well, to 7,599.
US shares were set for a tepid start, with Dow futures almost unchanged and S&P 500 futures down 0.1%.
Market had risen on Monday, adding to gains from last week, over an easing in tension between the US and Iran. Investors are now looking ahead to the signing of an initial trade deal between Washington and Beijing and the potential for future talks.
The world’s largest economies are expected to sign a so-called “Phase 1” trade agreement on Wednesday. It is seen as an opening to future negotiations that will deal with more complicated trade issues.
Japan’s benchmark Nikkei 225 rose 0.7% to finish at 24,025.17, while Australia’s S&P/ASX 200 added 0.9% to 6,962.20. South Korea’s Kospi gained 0.4% to 2,238.88. Hong Kong’s Hang Seng lost 0.2% to 28,885.14, while the Shanghai Composite edged 0.3% lower to 3,106.82.
France’s CAC 40 was little changed in early trading, inching less than 0.1% higher to 6,037.74. Germany’s DAX gained 0.2% to 13,468.52, while. Britain’s FTSE 100 rose 0.1% to 7,624.41.
Across markets, worries about a recession have faded since last year as central banks cut interest rates and pumped stimulus into the global economy. In addition, the promise of the trade deal between the US and China has helped lift markets in recent weeks, easing investors’ concerns of further escalation in the costly conflict.
Specialist Meric Greenbaum (center), works at his post on the floor of the New York Stock Exchange on Jan 10. Stocks were off to a mostly lower start
on Wall Street as losses for some banks and healthcare companies offset gains elsewhere in the market.(AP)
Full details of the trade pact are due to be released after the agreement is signed at the White House on Wednesday.
Wall Street will be releasing earnings reports later in the week and also have several economic reports to consider, including government reports on consumer prices, retails sales and home construction.
Benchmark crude oil picked up 32 cents to $58.40 a barrel in electronic trading on the New York Mercantile Exchange. It fell 96 cents to $58.08 a barrel on Monday. Brent crude oil, the international standard, gained 47 cents to $64.67 a barrel.
The dollar rose to 109.98 Japanese yen from 109.93 yen on Monday. The euro was down to $1.1128 from $1.1135.
Asian shares followed Wall Street higher on Tuesday amid optimism that a trade deal between the US and China will be a boon for the regional economy.
Japan’s benchmark Nikkei 225 rose 0.7% in morning trading to 24,026.10, while Australia’s S&P/ ASX 200 added 0.6% to 6,946.80. South Korea’s Kospi gained 0.8% to 2,246.88. Hong Kong’s Hang Seng edged up 0.1% to 28,990.45, while the Shanghai Composite was up nearly 0.2% at 3,120.72.
Monday’s rally on Wall Street added to gains from last week driven by an easing of tension between the US and Iran. Investors are now looking ahead to the signing of an initial trade deal between Washington and Beijing and the potential for future talks.
The world’s largest economies are expected to sign a so-called “Phase 1” trade agreement on Wednesday. It is being viewed as an opening to future negotiations that will deal with more complicated trade issues.
Investors’ “unquenchable appetite for stocks is in hyperdrive” thanks to the thawing tensions between the US and both China and Iran, Stephen Innes, chief Asia market strategist at AxiTrader, said in a report.
Even a partial deal between Washington and Beijing should remove much of the uncertainty that has weighed on companies and investors, at least until after the US presidential election in November, said Scott Ladner, chief investment officer for Horizon Investments in Charlotte.
“We don’t think the tariff overhang is going to be very relevant over the next nine months,” Ladner said. “Acting tough with China and imposing tariffs two years before an election is a very different story than doing it two months before an election.”
Across markets, worries about a recession have faded since last year as central banks cut interest rates and pumped stimulus into the global economy.
In addition, the promise of the trade deal between the U.S. and China has helped lift markets in recent weeks, easing investors’ concerns of further escalation in the costly conflict.
Full details of the pact are due to be released after the agreement is signed at the White House on Wednesday.
Chipmakers were among the gainers in the technology sector Monday. Nivida climbed 3.1% and Micron Technology rose 1.4%.
The sector is particularly sensitive to developments in trade relations because many of the companies rely on China for sales and supply chains. Apple also rose, closing 2.1% higher.
Industrial and communication services companies also made solid gains. General Electric rose 3.9% and Facebook added 1.8%.
Electric car maker Tesla jumped 9.8%, closing above $500 for the first time.
Netflix climbed 3% as the streaming video service earned two best picture nominations for the 92nd annual Academy Awards. Both Martin
Scorsese’s “The Irishman” and Noah Baumbach’s “Marriage Story” are contenders.
LONDON, Jan 14, (AP): British Prime Minister Boris Johnson said Tuesday that opponents of Huawei should suggest alternatives to the Chinese technology company as countries start start building out next-generation wireless networks.
Johnson’s comments come after American national security and telecom officials met their British counterparts in London, as his government prepares to decide on whether there’s a future for Huawei in the UK’s new 5G networks.
“The British public deserve to have access to the best possible technology,” Johnson said in an interview with the BBC. “Now, if people oppose one brand or another, then they have to tell us what’s the alternative, right?”
Johnson noted that on the other hand, “I don’t want, as the UK prime minister, to put in any infrastructure that is going to prejudice our national security or our ability to cooperate with Five Eyes intelligence
Traders bid up shares in Hexcel 9.6% after the company said it is being bought by rival Woodward in a deal that will create one of the largest suppliers in the aerospace and defense industry. Woodward rose 4.8% and will own the majority of the combined company when the deal closes.
Wall Street was also gearing up Monday for a busy opening week of corporate earnings being kicked off by major banks. JPMorgan Chase, Wells Fargo and Citigroup will report fourth-quarter earnings on Tuesday and Bank of America will follow on Wednesday.
Analysts predict corporate profits slid by 2% during the fourth quarter, which would mark the first time that earnings for the S&P 500 have fallen four quarters in a row since the period ending in mid-2016, according to FactSet. Companies typically outperform forecasts and temper expectations for sharp declines by the time the bulk of financial reporting is done.
“The management outlooks for this quarter are probably going to be as much, if not more important, than the actual numbers themselves,” Ladner said.
Delta Air Lines will be the first major airline to report financial results on Tuesday. The nation’s largest health insurer, UnitedHealth Group, will report earnings on Wednesday and railroad operator CSX will report on Thursday.
Wall Street will also have several economic reports to consider this week, including government reports on consumer prices, retails sales and home construction. partners,” which include the US, Canada, Australia and New Zealand.
The US has been trying to persuade its European allies to avoid using Huawei equipment in superfast next-generation telecom networks, over concerns China’s authorities can compel the company to facilitate electronic spying – allegations Huawei denies. US officials have repeatedly warned they would have to rethink intelligence sharing with any countries that use Huawei gear in 5G networks.
The British government is expected to make a final decision on Huawei’s role in “non-core” parts of the network, such as antennas. Multiple British media reports said the US delegation told British officials that using Huawei would be “madness” and presented them with a technical file of new security risks.
Huawei said it’s confident the UK government will make its decision “based upon evidence, as opposed to unsubstantiated allegations.”