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: Yellen’s comments boost Dow and S&P 500

Overnight Markets: Yellen’s comments boost Dow and S&P 500

US stocks mostly gained on Wednesday after comments from Federal Reserve Chair Janet Yellen signaled continued support for the economy, overshadowing a drop in Internet stocks led by Yahoo! Inc. and Groupon Inc.

The Dow Jones industrial average rose 118 points or 0.72%, to close at 16,519. The S&P 500 gained 10 points or 0.56%, to end at 1,878. The Nasdaq Composite dropped 13 points or 0.32%, to finish at 4,068.

Shares declined in early trading but the Dow and the S&P 500 moved into positive territory after Yellen said the US economy was still in need of lots of support, given the "considerable slack" in the labour market in remarks to the congressional Joint Economic Committee.

In the latest snapshot of the US economy, the Labour Department said that US nonfarm productivity fell at its fastest pace in a year in the first quarter because of severe weather.

Financials and utilities were the day's biggest gainers. On the Nasdaq, Yahoo! Inc (YHOO.O) fell 6.6% after Alibaba Group filed for an initial public offering that valued the Chinese e-commerce company well below analysts' consensus estimate.

Google (GOOG.O) shares fell 1%, while Facebook (FB.O) shares slid 2%. Amazon.com Inc (AMZN.O) declined 1.6%.

Groupon Inc (GRPN.O) sank 20.7% as its sales and profit projections for the current quarter trailed some estimates.

Twitter Inc (TWTR.N) lost 3.7% after leading a selloff in Internet shares on Tuesday with an 18% tumble.

Whole Foods Market Inc (WFM.O) also contributed to the Nasdaq's decline as the organic grocer's stock tumbled nearly 19%.

In Asia, shares gained on Thursday after Chinese exports and imports unexpectedly climbed and Yellen said the Fed will continue to support the US economy.

The MSCI Asia Pacific Index gained 0.6% to 138 as of 10:41 a.m. in Hong Kong. Japan’s Topix index climbed 0.9%. Australia’s S&P/ASX 200 Index rose 0.7%. South Korea’s Kospi index rose 0.1%, while New Zealand’s NZX 50 Index slid 0.3%.

Hong Kong’s Hang Seng Index climbed 0.7%. The Shanghai Composite Index rose 0.4%. Singapore’s Straits Times Index and Taiwan’s Taiex Index, both advanced 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 Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter