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 on upbeat ISM data

Overnight Markets: US stocks gain on upbeat ISM data

Wall Street ended slightly higher on Monday as an expansion in American service industries offset concern over growth in China and political tensions in Ukraine.

The Dow Jones industrial average rose 18 points or 0.11%, to 16,531, the S&P 500 gained four points or 0.19%, to 1,885 and the Nasdaq Composite added 14 points or 0.34%, to 4,138.

Shares rose after the Institute for Supply Management's services sector index hit the fastest pace in eight months in April, topping expectations.

Limiting the day's gains, however, were concerns over an escalation of tensions between Ukraine and pro-Russia separatists. Ukrainian forces were ambushed by separatists, triggering heavy fighting on the outskirts of the rebel stronghold of Slaviansk.

In company news, Apple (AAPL.O) shares, up 1.4%, led both the S&P 500 and Nasdaq higher.

Shares of Fannie Mae and Freddie Mac gained after activist investor William Ackman recommended the shares of mortgage finance giants during the Sohn Investment Conference in New York. Fannie (FNMA.OB) was up 3%, while Freddie (FMCC.OB) was up 6.3%.

On the downside, shares of JP Morgan Chase (JPM.N) fell 2.4% after the bank said late Friday it expects second-quarter revenue from bond and equity trading to decline about 20% from a year ago.

Pfizer Inc (PFE.N) shares fell 2.6% after the biggest US drugmaker reported revenues well below analysts' expectations.

After the bell, shares of American International Group Inc (AIG.N) declined 1.9% after it posted a 27% fall in quarterly income.

During the regular session, Target Corp (TGT.N) shares declined 3.5% after news that chief executive and chairman Gregg Steinhafel will leave the No. 3 US retailer in the wake of a data breach last year.

But shares of B/E Aerospace (BEAV.O) jumped 9.3% after German aircraft seating maker Recaro said it was studying the possibility of buying B/E Aerospace assets after the US company announced a surprise review.

In Asia, shares gained on Tuesday in morning trade with trading volume curbed by holidays in Japan, Hong Kong and South Korea.

The MSCI Asia Pacific excluding Japan Index advanced 0.1% to 475 at 11:31 a.m. in Sydney. Australia’s S&P/ASX 200 Index added 0.3% today ahead of a central-bank decision on interest rates. China’s Shanghai Composite lost 0.2% and Taiwan’s Taiex index slipped 0.1%. Singapore’s Straits Times Index added 0.1% and New Zealand’s NZX 50 Index slid 0.4%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter