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Overnight Markets: Banking stocks drag Wall Street lower

Stocks pared losses late in the session after reports OPEC was ready to cooperate on crude oil production cuts, citing the UAE energy minister.

Overnight Markets: Banking stocks drag Wall Street lower

Wall Street declined on Thursday led by banking shares amid concerns the slowing global economy will continue to pressure interest rates, while energy stocks helped pare losses late in the session.

The Dow Jones industrial average fell 255 points, or 1.6%, to 15,660, the S&P 500 lost 23 points, or 1.23%, to 1,829 and the Nasdaq Composite fell 17 points, or 0.39%, to 4,267.

Financial companies were among the biggest decliners amid growing anxiety that interest rates in the US and elsewhere would remain low and sap bank profits. Bank of America (BAC.N), down 6.8%, and JP Morgan (JPM.N), down 4.4%, were the largest drags on the S&P 500. Citigroup fell 6.5%.

Stocks pared losses late in the session after the Wall Street Journal reported OPEC was ready to cooperate on crude oil production cuts, citing the UAE energy minister. The price of oil tumbled to $26.21 a barrel, its lowest level since May 2003.

Southwestern Energy lost 5%, while NRG Energy shed 10.4%.

Boeing (BA.N) tumbled 6.8%, hit by a report that regulators are probing the planemaker's accounting. Traders bid up shares in TripAdvisor after the travel website operator's fourth-quarter profit and revenue topped estimates. The stock gained 12.4% and was the best performing stock in the S&P 500.

Cisco (CSCO.O) led tech stocks higher with a 9.6% increase after reporting a bigger-than-expected profit.

Tesla Motors climbed 4.7% after the electric car maker said its lower-priced Model 3 sedan was on schedule for a 2017 release.

In commodities, spot gold prices jumped 4.1% in their largest daily gain since September 2013.

In Asia, shares declined on Friday in morning session after global equities sank into a bear market and Japanese shares extended losses as the yen strengthened.

The MSCI Asia Pacific Index dropped 1.7% to 115 as of 11:11 a.m. in Tokyo.  The Topix index slipped 4.1% as the market resumed trading following Thursday’s holiday. South Korea’s Kospi index fell 0.5%. New Zealand’s S&P/NZX 50 Index lost 1.2%. Australia’s S&P/ASX 200 Index slid 0.8%.

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IFS says taxes need to hit historic highs to save NHS

by Dylan Lobo on May 24, 2018 at 07:56

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