Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Overnight Markets: Wall Street falls as Twitter leads selloff in technology

Overnight Markets: Wall Street falls as Twitter leads selloff in technology

US stocks declined on Tuesday with American International Group Inc. weighing on financial shares lower after disappointing earnings and as a slide in Twitter took down other names in the technology and internet space.

The Dow Jones industrial average fell 130 points or 0.78%, to 16,401, the S&P 500 lost 17 points or 0.9%, to 1,868 and the Nasdaq Composite dropped 57 points or 1.38%, to 4,081.

Twitter (TWTR.N) shares tumbled 17.8% after the expiration of a six-month "lock-up" period that had restricted the sale of about 82% of its outstanding stock.

Traders also kept an eye on developments in Ukraine, where supporters of Russia and of a united Ukraine are accusing each other of tearing the country apart.

AIG (AIG.N) shares declined 4.1% a day after posting a 27% decline in quarterly income. Financials were the largest decliners among the S&P 500's top ten industry sectors.

Athenahealth (ATHN.O) shares slumped 13.9%, a day after hedge fund manager David Einhorn said the company is part of a portfolio of overvalued stocks his Greenlight Capital was betting against.

Office Depot Inc (ODP.N) raised its forecast for full-year adjusted operating income and said it would close at least 400 stores in the US over two years, sending shares up 15.8%.

Adding to a string of major deals in the healthcare industry, Bayer (BAYGn.DE) acquired Merck's (MRK.N) consumer care business for $14.2 billion. Merck shares fell 2.6%.

In Asia, shares fell on Wednesday in morning trade with Japanese shares declining as the yen maintained gains, reducing the earnings outlook for exporters.

The MSCI Asia Pacific Index declined 0.9% to 138 as of 10:20 a.m. in Tokyo as markets in Japan and South Korea resumed trading following holidays. Japan’s Topix index slid 1.9% as the yen traded at 101.62 after strengthening to a three-week high yesterday.

New Zealand’s NZX 50 Index fell 0.2% after Reserve Bank Governor Graeme Wheeler said the central bank may sell the nation’s currency if it remains high. Australia’s S&P/ASX 200 Index retreated 0.7% and South Korea’s Kospi index declined 0.4%. Singapore’s Straits Times Index lost 0.2% and Taiwan’s Taiex index slipped 0.3%.

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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter