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: US stocks decline further on Fed stimulus bets

Overnight Markets: US stocks decline further on Fed stimulus bets

US stocks continued their decline on Thursday, with the Dow Jones and S&P 500 dropping for a fifth straight session, after improving economic data raised hopes the Federal Reserve will curb its monthly bond purchases sooner than estimated.

The Dow Jones industrial average lost 68 points, or 0.43%, to end at 15,822. The Standard & Poor's 500 Index fell eight points, or 0.43%, to finish at 1,785. The Nasdaq Composite Index dropped five points, or 0.12%, to close at 4,033.

Gross domestic product increased at an annualised rate of 3.6% in the third quarter, the fastest pace since the first quarter of 2012 and faster than the 3% rate that had been expected.

A separate report showed that the number of Americans filing new claims for unemployment benefits unexpectedly declined last week in a hopeful sign for the labour market.

Investors are trying to speculate about the Fed’s stance on the strong data and whether the numbers are strong enough for the central bank to slow its $85 billion-a-month bond-buying programme.

Apple (AAPL.O) rose 0.5% after China Mobile Ltd, the country's largest mobile operator, said it was still negotiating to offer iPhones on its network.

But Microsoft (MSFT.O) fell 2.4% in heavy volume after comments from a Ford Motor Co. director indicated chief executive Alan Mulally would not take over Microsoft’s top job. J.C. Penney Co Inc (JCP.N) shares tumbled 8.4% after Morgan Stanley reiterated its "underweight" rating on the stock.

Costco (COST.O) shares fell 1.6% after the warehouse club chain said sales at stores open at least a year rose 2%, below the 3.3% increase that analysts were expecting.

But the stock of Dollar General Corp (DG.N) jumped 6.1% and ranked as the S&P 500's best performer after the discount retailer posted third-quarter earnings.

Safeway Inc. slid 4.6% after Jana Partners LLC cut its stake in the supermarket chain.

Among financial stocks, Morgan Stanley lost 3% and JP Morgan Chase & Co. (JPM) dropped 2.4%.

In Asia, shares oscillated between gains and losses on Friday as improving US economic data fueled speculation the Fed may bring forward stimulus cuts.

The MSCI Asia Pacific Index added 0.1% to 140 as of 11 a.m. in Tokyo. Japan’s Topix index and South Korea’s Kospi index both gained 0.1%. Australia’s S&P/ASX 200 Index lost 0.3% and New Zealand’s NZX 50 Index slid 0.4%. Singapore’s Straits Times Index fell 0.5%.

Hong Kong’s Hang Seng Index dropped 0.2%, while China’s Shanghai Composite Index declined 0.3%. Singapore’s Straits Times Index retreated 0.5% and Taiwan’s Taiex index rose advanced 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 Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter