Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: Retailers lead Wall Street lower

Overnight Markets: Retailers lead Wall Street lower

U.S. stocks declined on Wednesday as retailers slumped after a report showed holiday shoppers were less enthusiastic than last year and President Barack Obama and Congress prepared to resume budget talks.

The Dow Jones industrial average slipped 46 points, or 0.35%, to 13,093. The Standard & Poor's 500 Index shed nine points, or 0.60%, to 1,418. The Nasdaq Composite Index dropped 23 points, or 0.77%, to 2,990.

Retailers slumped after holiday-related sales increased 0.7% from 28 October through 24 December, compared with a 2% increase last year, according to data from MasterCard Advisors SpendingPulse.

Macy's and Saks both declined 3%. Online retailer Amazon.com fell 3.1%.

Meanwhile, President Obama will begin his final effort on Thursday to negotiate a deal with Congress to bridge a series of tax increases and government spending cuts set to begin next week.

Economic data showed U.S. single-family home prices increased in October, reinforcing the view that the domestic real estate market is improving. The S&P/Case- Shiller index of property values in 20 cities increased 4.3% from October 2011.

Technology companies fell with Apple Inc., the world’s most valuable company, slipping 1.4%. Microsoft Corp. lost 0.7%. EBay Inc. dropped 1.6%.

Cliffs Natural Resources Inc. gained 2% as raw-material stocks advanced amid speculation Japan’s new government will act to bolster the economy. Prices for gold, copper and silver all rose.

Research In Motion Ltd. surged 11% after erasing a quarter of its market value following last week’s earnings report.

In Asia, shares rose on Thursday after the yen touched a 27-month low on prospects for more stimulus and China’s industrial companies’ profit gained.

The MSCI Asia Pacific Index gained 0.6% to 129 at 12:44 p.m. in Tokyo. The Nikkei 225 Stock Average added 1.4%, heading for the highest close since 10 March 2011, the day before an earthquake and tsunami devastated north eastern Japan and triggered meltdowns at a nuclear power plant.

Australia’s S&P/ASX 200 added 0.3% and New Zealand’s NZX 50 Index rose 0.1% in Wellington. South Korea’s Kospi index slid 0.2% while data showed manufacturers’ confidence rebounded and sales at major department stores rose.

Hong Kong’s Hang Seng Index rose 0.5%, while the Shanghai Composite Index fell 0.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Wealth Manager on Twitter