Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Overnight Markets: US stocks fall after Fed statement

Overnight Markets: US stocks fall after Fed statement

Wall Street declined on Wednesday after the Federal Reserve said in its latest statement that economic growth had stalled but indicated it will maintain its programme to buy securities.

The Dow Jones industrial average was down 44 points, or 0.32%, at 13,910. The Standard & Poor's 500 Index was down six points, or 0.39%, at 1,502. The Nasdaq Composite Index was down 11 points, or 0.36%, at 3,142.

At the end of a two-day policy meeting, the US central bank repeated its pledge to keep purchasing securities until employment improves substantially. The statement followed data that showed the economy unexpectedly contracted in the fourth quarter.  Gross domestic product fell at a 0.1% annual rate in the fourth quarter.

However, the shares were supported as private sector employment exceeded forecasts with the ADP National Employment report showing 192,000 jobs were added in January, higher than the 165,000 expectation.

Energy and industrial companies fell the most. Chesapeake Energy rose 6% a day after the company said Aubrey McClendon would step down as chief executive. General Electric Co. and Exxon Mobil Corp. had the biggest declines in the Dow, each falling 1.2%.

Peabody Energy Corp. dropped 6.4% after the coal producer was cut to sell from underperform by David Lipschitz, an analyst with Credit Agricole Securities (USA).

Shares of Facebook Inc fell 5.9% after the bell following the company's earnings announcement. Both Boeing Co and Amazon.com shares gained after earnings beat expectations. Amazon rose 4.8% to and Boeing rose 1.3%.

Research In Motion plunged 12% after the company, which is changing its name to BlackBerry, unveiled a long-delayed line of smartphones in hopes of a comeback into a market it once dominated.

Homebuilders also slipped with Lennar Corp. declining 2.4%. D.R. Horton Inc. retreated 3.2%.  

In Asia, share fell on Thursday in late morning trade after Japan’s industrial production missed estimates and US growth unexpectedly stalled.

The MSCI Asia Pacific Index slid 0.3% to 133 as of 11:02 a.m. in Tokyo.  Japan’s Nikkei 225 Stock Average slid 0.5%. Australia’s S&P/ASX 200 Index declined 0.5%, while South Korea’s Kospi Index retreated 0.3%. Taiwan’s Taiex Index slumped 0.3% even after its economy expanded more than estimated in the fourth quarter.

Hong Kong’s Hang Seng Index retreated 0.5%. The Shanghai Composite Index slid 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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter