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 rise on retail data

Overnight Markets: US stocks rise on retail data

The Dow Jones and S&P 500 inched higher on Tuesday as stronger-than-expected retail data and a rally in transportation companies overshadowed concern about discussions on raising the debt ceiling.

The Dow Jones industrial average was up 28 points, or 0.2%, at 13,535. The Standard & Poor's 500 Index was up two points, or 0.11%, at 1,472. The Nasdaq Composite Index was down seven points, or 0.22%, at 3,111.

Retail shares rallied after a government report showed retail sales jumped more than expected in December, which was seen as a favourable sign for fourth-quarter growth.

American Eagle Outfitters Inc gained 4.8% and Gap Inc rose 3.4%. The Morgan Stanley retail index advanced 1.5%. Express Inc surged 23.8% after the apparel retailer raised its fourth-quarter and full year 2012 outlook.

In another report, manufacturing activity in New York state was seen contracting for the sixth month in a row in January.

Investors were also cautious ahead of the debt ceiling debate. The US could default on its debt if Congress does not increase the borrowing limit.

An expected lacklustre earnings season also kept investors from taking aggressive bets.

Apple was a big drag on both the S&P 500 and Nasdaq 100 after reports on Monday of cuts to orders for iPhone parts. Shares fell 3.2%.

Homebuilder Lennar shed 0.8% despite reporting a sharp rise in quarterly profit on worries that growth in orders was slowing.

Dell Inc surged 7.2% after sources said talks to take the computer maker private are in an advanced stage.

On the down side, shares of Facebook dropped 2.7% after the company introduced a tool for searching information posted to its social network.

Lululemon Athletica Inc. slid 3.9% after the Canadian yoga-wear retailer forecast fourth-quarter sales that trailed analysts’ estimates.

In Asia, shares declined on Wednesday led by Japanese equities after the yen gained dimming the outlook for export earnings.

The MSCI Asia Pacific Index slid 0.3% to 132 as of 10:39 a.m. Tokyo time. Japan’s Nikkei 225 dropped 1.5%, after closing yesterday at the highest level since April 2010. China’s Shanghai Composite Index was little changed, while Hong Kong’s Hang Seng Index fell 0.1%. Taiwan’s Taiex Index slipped 0.6% and South Korea’s Kospi Index added 0.4%. Australia’s S&P/ASX 200 Index gained 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
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