Sharechat Logo

While you were sleeping: Durable goods disappoint

Tuesday 27th June 2017

Text too small?

Wall Street was mixed, while US Treasuries rose amid concern the pace of economic growth might ease. 

A Commerce Department report showed US durable goods orders fell more than expected in May, while orders for business equipment posted a surprise decline, bolstering concern about the strength of economic growth. 

Treasuries rose, pushing the yield on the 10-year note two basis points lower to 2.13 percent.

"The bond market is signalling an economic slowing," Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, told Reuters. "That's why you're seeing defensive names like utilities do well, because equity investors are buying more in line with what that bond market is saying.”

Wall Street was mixed. In 3.32pm trading in New York, the Dow Jones Industrial Average added 0.2 percent. However,  the Nasdaq Composite Index fell 0.2 percent. In 3.16pm trading, the Standard & Poor’s 500 Index gained 0.2 percent. 

The Dow climbed as advances in shares of Goldman Sachs and those of Walt Disney, recently up 1.7 percent and 1.3 percent respectively, outweighed slides in shares of Microsoft and those of Boeing, recently down 0.8 percent and 0.7 percent respectively.

Shares of Google parent Alphabet declined, trading 1.2 percent weaker as of 3.35pm in New York. European Union antitrust regulators are likely to impose a record fine on Alphabet unit Google over its shopping service as soon as Tuesday, two people familiar with the matter said on Monday, according to Reuters.

The European Commission declined to comment, Reuters reported.

Meanwhile, Europe’s Stoxx 600 Index ended the day with a 0.4 percent advance from the previous close. The UK’s FTSE 100 Index gained 0.3 percent, Germany’s DAX Index also rose 0.3 percent, while France’s CAC40 Index increased 0.6 percent.

Shares of Switzerland's Nestle closed 4.3 percent higher in Zurich. Activist investor Dan Loeb has amassed a US$3.5 billion stake in Europe's largest company. Third Point, Loeb's hedge fund, owns about 40 million shares in Nestle, according to an investor letter released Sunday after Bloomberg first reported the position. 
"It is rare to find a business of Nestle's quality with so many avenues for improvement," wrote Third Point, which holds a 1.3 percent stake and encouraged Nestle to sell its stake in cosmetics maker L'Oreal, according to Bloomberg.

Also gaining were Italian bank stocks after the nation’s government agreed to spend as much as 17 billion euros on further shoring up the industry.

“We see virtually no risks attached to this transaction” for Intesa Sanpaolo “but other banks can celebrate too as they have avoided the risk of having to foot a very painful bill via extraordinary installments to the Resolution Fund,” Andrea Filtri, an analyst at Mediobanca, wrote in a note Monday, Bloomberg reported.



Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports