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: Wall Street declines after Tillerson exit

Overnight Markets: Wall Street declines after Tillerson exit

US stocks closed lower on Tuesday, with equities dropping in a broad decline, amid uncertainty in Washington stemming from the dismissal of Secretary of State Rex Tillerson.

The Dow Jones Industrial Average fell 105 points, or 0.42%, to 25,074, the S&P 500 lost 14 points, or 0.49%, to 2,769 and the Nasdaq Composite dropped 62 points, or 0.82%, to 7,526.

US President Donald Trump fired Tillerson after a series of public rifts over issues including North Korea and Russia. Steve Goldstein, a State Department undersecretary of state for public affairs, was also fired, soon after releasing a statement that Tillerson did not know why he was being pushed out.

Trump has tapped CIA Director Mike Pompeo, seen as loyal to the president, to replace Tillerson.

Stocks gained earlier during the day after data showed US consumer price growth slowed in February, an indication that an anticipated pickup in inflation probably will be only gradual.

Tech and financial shares were the biggest laggards among the S&P 500’s 11 major sectors. Shares of Microsoft Corp. were down 2.4% while Alphabet Inc. fell 2.2%. Facebook Inc. fell 1.6%.

Financial stocks were weighed as US Treasury yields fell in response to the CPI data and Tillerson’s exit.

In corporate news, General Electric Co fell 4.3% after JP Morgan cut its price target on the stock to $11 from $14, saying the industrial conglomerate was not a “safety stock” in a volatile market.

Shares of Qualcomm Inc. fell 5% after Trump on Monday blocked Broadcom Ltd’s $117 billion hostile bid for the semiconductor company, citing national security concerns.

DSW Inc. shares rallied 11% after the footwear retailer posted quarterly results. Stitch Fix Inc. shares fell 3.6% after the online clothing retailer beat Wall Street’s forecasts for sales, but missed on revenue.

In Asia, share markets fell on Wednesday in morning session, tracking losses seen on Wall Street overnight.

In Japan, the Nikkei 225 fell 0.94%. Over in Seoul, the benchmark Kospi edged down by 0.6%. In Sydney, the ASX/S&P 200 lost 0.81%.

In Greater China, the Hang Seng Index fell 1.15%, while on the mainland, the Shanghai Composite Index fell 0.39%.

 

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 Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter