Badgerland Financial

 

 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Stocks Sag at the Close Friday         01/30 17:09

   The U.S. stock market capped a rough month Friday, delivering its third loss 
in five days and extending its declines for the year.

   (AP) -- The U.S. stock market capped a rough month Friday, delivering its 
third loss in five days and extending its declines for the year.

   All told, the Standard & Poor's 500 index fell 3 percent in January, its 
worse monthly performance in a year. While the U.S. economy continued to show 
signs of strength, energy companies suffered from a sharp drop in oil prices 
and some big multinational companies saw their earnings dinged by a stronger 
dollar.

   On Friday, investors also weighed the consequences of a slowdown in U.S. 
economic growth and how further strength in the dollar could dent corporate 
profits.

   "The real issue still is the confusion, the uncertainty around the speed of 
decline in oil prices and what that means, and the rise in the dollar and what 
that means for earnings," said Bob Doll, chief equity strategist at Nuveen 
Asset Management.

   The concerns about a surging dollar intensified after Russia's central bank 
unexpectedly cut interest rates to 15 percent from 17 percent to help the 
weakening economy. That sent the ruble down against the dollar.

   Before the U.S. market opened, the government said that the economy grew 2.6 
percent in the last quarter of 2014, as weaker government and business spending 
held growth back. The decline was unexpected and down from a gain of 4.6 
percent in the second quarter and 5 percent in the third quarter.

   But others news signaled the steady health of the U.S. economy. Consumer 
spending surged in the final three months of 2014. The Labor Department 
reported that wages and benefits rose last year by 2.2 percent, the biggest 
calendar-year increase since 2008

   Investors also sifted through the latest batch of corporate earnings news, 
and the results were mixed.

   Amazon.com and Visa reported strong results late Thursday. Amazon jumped 
13.7 percent, while Visa rose 2.8 percent.

   Several companies didn't fare as well, including Ugg footwear maker Deckers 
Outdoor and the parent of Hawaiian Airlines, which offered discouraging 
outlooks. Deckers slumped 19.7 percent, while Hawaiian Holdings slid 27 percent.

   The Dow Jones industrial average dropped 251.90 points, or 1.5 percent, to 
close at 17,164.95. The S&P 500 index lost 26.26 points, or 1.3 percent, to 
1,994.99. The Nasdaq composite fell 48.17 points, or 1 percent, to 4,635.24.

   Nine of the 10 sectors in the S&P 500 fell, with utilities declining the 
most.

   The one sector that rose was energy. Benchmark U.S. crude rose $3.71 to 
close at $48.24 a barrel in New York. The price rose on expectations of lower 
supplies as the number of working drilling rigs continued to fall, according to 
a closely-watched industry count. Concerns over an attack on oil-rich Kirkuk, 
Iraq by Islamic insurgents also spurred oil buying and higher prices.

   While oil had a strong day, it remains in a deep slump. The price of 
benchmark U.S. crude has fallen to $48 a barrel from over $107 last June.

   Demand for ultra-safe bonds rose. The yield on the 10-year Treasury note 
fell to 1.66 percent Friday, the lowest since May 2013. Yields fall as bond 
prices rise.

   "I think that the bond market is starting to scare equity investors: 'What 
do they know that I don't?'" said Jim Paulsen, chief investment strategist at 
Wells Capital Management. "The bond market is telling us that things are 
getting worse."

   The dollar strengthened against the euro, which slipped to $1.1291 from 
$1.1327.

   In other futures trading:

   -- Brent crude rose $3.86 to close at $52.99 in London.

   -- Wholesale gasoline rose 6.1 cents to close at $1.415 a gallon.

   -- Heating oil rose 6.8 cents to close at $1.686 a gallon.

   -- Natural gas fell 2.8 cents to close at $2.691 per 1,000 cubic feet. 


(AG)


 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN