Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: Wall Street declines as small-cap selloff resumes

Overnight Markets: Wall Street declines as small-cap selloff resumes

Wall Street declined on Wednesday, with the Dow Jones and S&P 500 retreating from recent record highs, as investors resumed selling in small-cap and Internet shares.

The Dow Jones industrial average fell 101 points, or 0.61%, to 16,614, the S&P 500 lost nine points, or 0.47%, to 1,889, and the Nasdaq Composite dropped 30 points, or 0.72%, to 4,101.

Economic data yesterday showed wholesale prices in the US increased in April by the most in more than a year, reflecting broad-based gains that signal the threat of deflation is ebbing as the economy improves.

Investors have also been watching developments in Ukraine, where rebels on Tuesday killed seven government soldiers and wounded eight others during an ambush in a breakaway eastern region.

In corporate news, Groupon Inc. plunged 4.4% to lead the Dow Jones Internet Index lower by 1.2%. Fossil Group Inc. declined 10% after the maker of watches and accessories forecast earnings that trailed analysts’ estimates.

Deere & Co. (DE) slid 2% after cutting its full-year revenue projection. International Business Machines Corp. lost 1.8% to pace declines among large companies.

Macy's (M.N) shares dipped 0.2% after the department store operator reported sales that missed expectations.

In late afternoon trading, Wal-Mart (WMT.N) shares fell sharply in an instant as volume spiked in an out-of-the-ordinary mini "flash crash," data showed. The stock ended down 0.5%.

Shares of online retailer Zulily Inc (ZU.O) shot up 9.3% in heavy volume of more than 9.7 million shares, after dropping to a record low earlier in the day following the expiration of the lockup period after its initial public offering in November.

In Asia, shares declined on Thursday in late morning trade as a stronger yen weighed on Japanese shares and after US equity gauges dropped from records.

The MSCI Asia Pacific Index declined 0.3% to 140 as of 11:03 a.m. in Tokyo. Japan’s Topix index lost 0.8% as the yen traded at 102 per dollar after gaining 0.4% yesterday.

South Korea’s Kospi index added 0.1%. Australia’s S&P/ASX 200 Index was little changed and New Zealand’s NZX 50 Index lost 0.2%.

Hong Kong’s Hang Seng Index advanced 0.6%. The Hang Seng China Enterprises Index of mainland companies traded in the city was little changed. The Shanghai Composite Index lost 0.2%. Taiwan’s Taiex index slid 0.2%. Singapore’s Straits Times Index rose 0.1%.

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 Hendersons' Kerley: investing in Marmite-like China

Hendersons' Kerley: investing in Marmite-like China

Citywire A-rated manager sees higher quality growth originating from China's current reforms.

Play Oil slump opportunities, Japanese recession & a UK bank conundrum

Oil slump opportunities, Japanese recession & a UK bank conundrum

Investment Pulse this week looks at further challenges for the British banking sector, Japan's return to recession and the continuing weakness of brent crude.

Play JPMAM's Georgina Brittain: the best opportunities in mid caps

JPMAM's Georgina Brittain: the best opportunities in mid caps

Brittain discusses where she sees opportunities in mid caps despite rising valuations.

Your Business: Cover Star Club

Profile: The godfather of fund-of-hedge-funds on the sector's future

Profile: The godfather of fund-of-hedge-funds on the sector's future

When Dixon Boardman started 26 years ago ‘there were 600 hedge funds and only 100 had $100 million – it was not even a cottage industry,’

Wealth Manager on Twitter