Wall St Falls as Cost Pressures Rise, Oil Prices Retreat

While first-quarter corporate profits are expected to have notched their best growth in seven years, largely due to lower taxes, investors have focused on cost warnings from companies.

Construction Spending

Total construction spending at a seasonally adjusted annual rate.

“I think a lot of data is pointing to 2018 being a peak from many points of view,” said Mona Mahajan, U.S. investment strategist at Allianz Global Investors in New York.

“What’s concerning is beyond this year, the momentum will slow. We’re starting to see and what the market is starting to realize is a combination of perhaps the peak in momentum from earnings and economic perspective, combined with late-cycle rate-rising environment.”

At 12:43 p.m. ET, the Dow Jones Industrial Average was down 266.30 points, or 1.10 percent, at 23,896.85, the S&P 500 was down 14.11 points, or 0.53 percent, at 2,633.94 and the Nasdaq Composite was down 4.18 points, or 0.06 percent, at 7,062.08

Archer Daniels Midland, one of the largest exporters of U.S. sorghum to China, said it would take a $30 million hit to its trading profit in the second quarter due to the U.S.-China trade dispute.

Nine of the 11 major S&P sectors were lower, with a 1.3 percent drop in the industrial sector the biggest.

The energy sector fell 1.2 percent on the back of a more than 1 percent drop in crude oil prices as the dollar remained near a four-month high ahead of the Federal Reserve meet. [O/R]

Pfizer fell 4.3 percent, the most on the Dow, after posting its biggest miss on quarterly revenue in a year, on disappointing sales of some blockbuster drugs.

The technology sector was the lone gainer, up 0.3 percent as Apple jumped 1.5 percent ahead of its quarterly report after the bell.

Declining issues outnumbered advancers for a 2.16-to-1 ratio on the NYSE and for a 1.67-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 27 new lows, while the Nasdaq recorded 25 new highs and 66 new lows.

(Reporting by Sruthi Shankar and Savio D’Souza in Bengaluru; Editing by Shounak Dasgupta)

Continue reading the main story

Dow, S&P Climb for Third Day in a Row on Easing Trade Worries

Earnings forecasts have increased sharply since Congress approved sweeping changes to the U.S. tax law late last year, with first-quarter earnings growth expected to be the highest in seven years.

Balance of Trade

The deficit is the excess of imports over exports for goods and services. Amounts are rounded, in billions of dollars, seasonally adjusted.

The Dow Jones Industrial Average rose 240.92 points, or 0.99 percent, to 24,505.22, the S&P 500 gained 18.15 points, or 0.69 percent, to 2,662.84 and the Nasdaq Composite added 34.45 points, or 0.49 percent, to 7,076.55.

Advancing issues outnumbered declining ones on the New York Stock Exchange by a ratio of 2.76 to 1, while it was the first day of more new 52-week highs on NYSE than 52-week lows since March 13.

On Wednesday, the Dow dropped more than 500 points after China and the United States imposed tariffs on each other’s products, but closed up 230 points after President Donald Trump’s top economic adviser Larry Kudlow said the administration was involved in a “negotiation” with China rather than a trade war.

Facebook, Amazon, Alphabet and Netflix – collectively known as the “FANG” group – were up between 0.3 percent and about 3 percent.

Facebook Chief Executive Mark Zuckerberg said the company had not seen “any meaningful impact” on usage or ad sales since the data privacy scandal.

Amazon rose 2.9 percent after being repeatedly hammered this week by Trump’s attacks on the online retailer.

About 6.4 billion shares changed hands on U.S. exchanges. That compares with the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data.

(Additional reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and James Dalgleish)

Continue reading the main story

Wall Street Posts Biggest One-Day Gain in 2-1/2 Years as Trade-War Fears Ebb

NEW YORK — Wall Street’s three major indexes jumped to their greatest one-day gain in two-and-a-half years on Monday, led by the tech sector, as trade war fears eased on reports that the United States and China were willing to renegotiate tariffs and trade imbalances.

2-Year Treasury Notes

High yield in percent.

The Dow Jones Industrial Average rose 669.4 points, or 2.84 percent, to 24,202.6, the S&P 500 gained 70.29 points, or 2.72 percent, to 2,658.55 and the Nasdaq Composite added 227.88 points, or 3.26 percent, to 7,220.54.

(Reporting by Stephen Culp; Editing by James Dalgleish)

Continue reading the main story