Related News
US stocks turn lower after Egypt turmoil worsens
Source: Agencies |
July 3, 2013, Wednesday
|
Online Edition
Online Edition
THE stock market ended slightly lower yesterday after reports of intensifying political turmoil in Egypt offset good news about the US economy.
Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. (1740 GMT) after news emerged that Egypt's military had drawn up plans to suspend the country's constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.
The price of oil climbed close to US$100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.
"It's more or less Egypt unrest," said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. "These very large protests are being televised and broadcast - that's spooking people."
The Standard & Poor's 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08
The Dow Jones industrial average fell 42.55 points, or 0.3 percent, to close at 14,932.41 The Nasdaq composite slipped 1.09 points, a fraction of a percentage point, at 3,433.40
Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close on at 1 pm on today, ahead of the Independence Day holiday tomorrow. The market re-opens Friday.
Crude oil jumped about US$1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up US$1.61 at US$99.60 a barrel in New York. It last crossed US$100 on Sept. 14 of last year.
The market's early gains were driven by a number of strong economic reports.
US June auto sales reached their highest level since 2007. That helped lift Ford's stock 44 cents, or 2.8 percent, to US$16.18.
US factory orders rose in May, helped by a third straight month of stronger business investment.
Also, US home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.
When trading resumes Friday, investors will turn their attention to a key gauge of the economy - the government's monthly employment report.
Economists forecast that the US economy added 165,000 jobs in June, according to data compiled by FactSet. The Dow surged 200 points June 7 after the Labor Department said that US employers added 175,000 jobs in May. The Federal Reserve has said the jobs market will be critical in determining when it ends its bond buying, which has kept interest rates low and driven a surge in stocks this year.
Investors and traders are also starting to think about corporate earnings, which begin in earnest next week. While corporate profits have reached record levels, most of the gains have come from cutting costs rather than increasing sales.
"We're in the middle of a transition," said Chris Wolfe, chief investment officer at Merrill Lynch Private Banking and Investment Group. "You would expect to see, over the balance of this year and going into next year, somewhat stronger macro-economic data that translates directly into stronger corporate revenue growth."
Alcoa, the first company in the Dow to report its earnings, will release its second-quarter results after the market closes July 8.
In government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent on Monday.
In other trading, the price of gold fell US$12.30, or 1 percent, to close at US$1,243.40 an ounce.
Among stocks making big moves:
- Zynga jumped 20 cents, or 6.5 percent, to US$3.27 after the troubled maker of "FarmVille" and other online games said CEO Mark Pincus would step aside. The company's stock is down almost 70 percent since its 2011 initial public offering at US$10 per share.
- Achillion Pharmaceuticals fell US$2.10, or 25.1 percent, to US$6.26 after the drug developer said regulators Monday placed a hold on an early-stage study involving its potential hepatitis C treatment.
Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. (1740 GMT) after news emerged that Egypt's military had drawn up plans to suspend the country's constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.
The price of oil climbed close to US$100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.
"It's more or less Egypt unrest," said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. "These very large protests are being televised and broadcast - that's spooking people."
The Standard & Poor's 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08
The Dow Jones industrial average fell 42.55 points, or 0.3 percent, to close at 14,932.41 The Nasdaq composite slipped 1.09 points, a fraction of a percentage point, at 3,433.40
Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close on at 1 pm on today, ahead of the Independence Day holiday tomorrow. The market re-opens Friday.
Crude oil jumped about US$1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up US$1.61 at US$99.60 a barrel in New York. It last crossed US$100 on Sept. 14 of last year.
The market's early gains were driven by a number of strong economic reports.
US June auto sales reached their highest level since 2007. That helped lift Ford's stock 44 cents, or 2.8 percent, to US$16.18.
US factory orders rose in May, helped by a third straight month of stronger business investment.
Also, US home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.
When trading resumes Friday, investors will turn their attention to a key gauge of the economy - the government's monthly employment report.
Economists forecast that the US economy added 165,000 jobs in June, according to data compiled by FactSet. The Dow surged 200 points June 7 after the Labor Department said that US employers added 175,000 jobs in May. The Federal Reserve has said the jobs market will be critical in determining when it ends its bond buying, which has kept interest rates low and driven a surge in stocks this year.
Investors and traders are also starting to think about corporate earnings, which begin in earnest next week. While corporate profits have reached record levels, most of the gains have come from cutting costs rather than increasing sales.
"We're in the middle of a transition," said Chris Wolfe, chief investment officer at Merrill Lynch Private Banking and Investment Group. "You would expect to see, over the balance of this year and going into next year, somewhat stronger macro-economic data that translates directly into stronger corporate revenue growth."
Alcoa, the first company in the Dow to report its earnings, will release its second-quarter results after the market closes July 8.
In government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent on Monday.
In other trading, the price of gold fell US$12.30, or 1 percent, to close at US$1,243.40 an ounce.
Among stocks making big moves:
- Zynga jumped 20 cents, or 6.5 percent, to US$3.27 after the troubled maker of "FarmVille" and other online games said CEO Mark Pincus would step aside. The company's stock is down almost 70 percent since its 2011 initial public offering at US$10 per share.
- Achillion Pharmaceuticals fell US$2.10, or 25.1 percent, to US$6.26 after the drug developer said regulators Monday placed a hold on an early-stage study involving its potential hepatitis C treatment.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
