Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks gain as dividend payers advance

Overnight Markets: US stocks gain as dividend payers advance


Wall Street gained on Monday in morning session as a sharp decline in General Electric stocks was more than offset by advance in high dividend-paying sectors including consumer staples and utilities.

The Dow Jones Industrial Average added 17 points, or 0.07%, to 23,440, the S&P 500 gained three points, or 0.10% to 2,585 and the Nasdaq Composite added seven points, or 0.1%, to 6,758.

General Electric (GE.N) slashed its dividend by 50% and cut its profit forecast while unveiling a plan that narrowed its focus on aviation, power and healthcare. Shares of the industrial conglomerate fell 7.2% after touching a more than five-year low of $18.75.

Utilities and consumer staples rank among the sectors with the highest dividend yield on the S&P 500. They were also the largest percentage winning sectors on Monday.

Shares of regional banks rose after reports that a bipartisan group of Senate lawmakers reached a tentative agreement to ease some regulations on the sector. The KBW Regional Banking Index gapped lower at the open but turned positive mid-session and ended up 1.3% after steadily climbing in afternoon trading.

Investors are also closely tracking developments around the tax bill after US Senate Republicans last week unveiled a new plan that differed from the House of Representatives’ version.

Toymaker Mattel (MAT.O) jumped 20.7% after a report that rival Hasbro (HAS.O) made an approach to acquire the company. Hasbro rose 5.9%.

Qualcomm (QCOM.O) added 3.0% after the chipmaker rejected rival Broadcom’s (AVGO.O) $103-billion takeover bid, saying the offer “dramatically” undervalued the company.

Tyson Foods (TSN.N) shares climbed 2.0% after the meat processor said low prices for livestock feed will help boost results again next year. Shares touched their highest since September 2016.

Roku (ROKU.O) shares continued to rally, up 28.5%, more than doubling since the company reported earnings last week.

In Asia, shares were pressured on Tuesday in morning session following a lacklustre session on Wall Street that saw major indexes close just above the flat line.

The Nikkei 225 was off 0.08%, while across the Korean Strait, the Kospi lost 0.26%. Down Under, the S&P/ASX 200 fell 1.05%. In China, the Shanghai Composite Index fell 0.32%, while Hong Kong’s Hang Seng Index added 0.12%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter
Managing risk, unearthing returns
  • A-rated Beagles sells down Brewin Dolphin
  • Electoral Commission reopens Vote Leave probe
  • City grandee says HBOS crisis 'worst moment' of his career
  • Ex-OMGI duo enters model portfolio market with new boutique
  • Abolish stamp duty: six wealth managers' Budget wish lists
  • James Carthew: is the Japanese glass half full, empty, or illusory?
  • The Expert View: William Hill, Mitie and Xaar
  • Overnight Markets: Tech shares buoy Wall Street
  • Tuesday Papers: May told to exploit Merkel crisis to reduce Brexit bill
  • Investors brush off German government worries
  • Buy-to-let crackdown? Charles Stanley's 5 Budget calls
  • Brewin Dolphin's south west assets hit £1bn
  • Wealth Manager Top 100 2017: seven hidden fund talents to watch
  • Read More