Citywire for Financial Professionals
Stay connected:

View the article online at

Overnight Markets: Yellen’s comments boost Dow and S&P 500

Nasdaq fell amid a decline in Internet stocks led by Yahoo! Inc. and Groupon Inc.

Overnight Markets: Yellen’s comments boost Dow and S&P 500

US stocks mostly gained on Wednesday after comments from Federal Reserve Chair Janet Yellen signaled continued support for the economy, overshadowing a drop in Internet stocks led by Yahoo! Inc. and Groupon Inc.

The Dow Jones industrial average rose 118 points or 0.72%, to close at 16,519. The S&P 500 gained 10 points or 0.56%, to end at 1,878. The Nasdaq Composite dropped 13 points or 0.32%, to finish at 4,068.

Shares declined in early trading but the Dow and the S&P 500 moved into positive territory after Yellen said the US economy was still in need of lots of support, given the "considerable slack" in the labour market in remarks to the congressional Joint Economic Committee.

In the latest snapshot of the US economy, the Labour Department said that US nonfarm productivity fell at its fastest pace in a year in the first quarter because of severe weather.

Financials and utilities were the day's biggest gainers. On the Nasdaq, Yahoo! Inc (YHOO.O) fell 6.6% after Alibaba Group filed for an initial public offering that valued the Chinese e-commerce company well below analysts' consensus estimate.

Google (GOOG.O) shares fell 1%, while Facebook (FB.O) shares slid 2%. Inc (AMZN.O) declined 1.6%.

Groupon Inc (GRPN.O) sank 20.7% as its sales and profit projections for the current quarter trailed some estimates.

Twitter Inc (TWTR.N) lost 3.7% after leading a selloff in Internet shares on Tuesday with an 18% tumble.

Whole Foods Market Inc (WFM.O) also contributed to the Nasdaq's decline as the organic grocer's stock tumbled nearly 19%.

In Asia, shares gained on Thursday after Chinese exports and imports unexpectedly climbed and Yellen said the Fed will continue to support the US economy.

The MSCI Asia Pacific Index gained 0.6% to 138 as of 10:41 a.m. in Hong Kong. Japan’s Topix index climbed 0.9%. Australia’s S&P/ASX 200 Index rose 0.7%. South Korea’s Kospi index rose 0.1%, while New Zealand’s NZX 50 Index slid 0.3%.

Hong Kong’s Hang Seng Index climbed 0.7%. The Shanghai Composite Index rose 0.4%. Singapore’s Straits Times Index and Taiwan’s Taiex Index, both advanced 0.3%.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:


Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.


Nigel Thomas to retire after 40 years in funds

by Daniel Grote on Apr 26, 2018 at 16:42

Sorry, this link is not
quite ready yet