Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a753584

Overnight Markets: Wall Street retreats as retailers decline

by Himanshu Singh on May 29, 2014 at 03:42

Overnight Markets: Wall Street retreats as retailers decline

Wall Street declined on Wednesday, with the S&P 500 snapping up a four-session winning streak, as losses among retailers overshadowed gains in phone shares and utilities ahead of a report on Thursday that may show the economy contracted in the first quarter.

The Dow Jones industrial average declined 42 points or 0.25%, to 16,633. The S&P 500 lost two points or 0.11%, to end at 1,910. The Nasdaq Composite fell 12 points or 0.28%, to 4,225.

A report by the Commerce Department today may show the US economy shrank 0.5% in the first quarter, following a preliminary estimate of 0.1% annualised growth, according to economists surveyed by Bloomberg News. GDP increased at a 2.6% annualised pace in the previous period.

Retailers suffered, with the Dollar General, an owner of discount stores, declining 3% as Deutsche Bank AG lowered the stock’s rating to hold from buy.

Lowe’s (LOW) fell 2.2% after Canaccord Genuity Corp. analysts told clients to sell shares of the home improvement retailer. However, Michael Kors Holdings Ltd (KORS.N) climbed 1.3% following the company's quarterly earnings as sales of its handbags and watches surged in North America.

Allergan, the maker of the Botox anti-wrinkle drug, fell 5.4% after Valeant added more cash to the bid in an effort to win backing from the target and its investors.

Toll Brothers climbed 2.1% after the home builder has continued raising prices and boosting sales in the costlier New York and California markets.

Twitter jumped 11% after Nomura raised its rating on the shares to buy from neutral. 3D Systems Corp. declined 11% after saying it will sell 5.95 million new shares for $317 million.

In Asia, shares oscillated between gains and losses as investors weighed a worse-than-estimated decline in Japan’s retail sales before a report that’s expected to show the US economy contracted last quarter.

The MSCI Asia Pacific Index rose less than 0.1% to 142 as of 10:02 a.m. in Hong Kong. Japan’s Topix index lost 0.3% as the nation’s retail sales fell 13.7% in April from March.

China’s Shanghai Composite Index added 0.1%, while Hong Kong’s Hang Seng Index gained 0.3%. South Korea’s Kospi index slid 0.1%. New Zealand’s NZX 50 Index and Australia’s S&P/ASX 200 Index both slipped 0.1%. Taiwan’s Taiex index was little changed. Singapore’s Straits Times Index climbed 0.7%.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

How is regulation feeding the outsourcing trend?

on Jul 24, 2014 at 10:59

Sorry, this link is not
quite ready yet