Sharechat Logo

While you were sleeping: Wall St slips from record

Tuesday 29th November 2016

Text too small?

Wall Street fell from record highs, while Treasuries rose, as investors locked in some profits from the post-US-election rally.

In 1.11pm trading in New York, the Dow Jones Industrial Average fell 0.2 percent, while the Nasdaq Composite Index declined 0.3 percent. In 12.56pm trading, the Standard & Poor’s 500 Index slipped 0.2 percent.

"US stocks have soared since the election," Adam Sarhan, chief executive at 50 Park Investments, told Reuters. “At this point, it would be perfectly normal to see the market pull back a bit to digest the very strong move.”

"Technically, the market is very overbought and just about everyone out there, including the strongest bulls, want to see a nice orderly consolidation,” Sarhan noted.

The Dow fell as slides in shares of Nike and those of American Express, down 1.2 percent and 0.9 percent respectively, outweighed gains in Verizon Communications and those of IBM, up 0.8 percent each respectively. 

US Treasuries rose, pushing yields on the benchmark 10-year note four basis points lower to 2.32 percent.That also weighed on the US dollar.

“Dollar-yen looks to be struggling as the 10-year Treasury note opens for the week with a further step lower in yield,” Sean Callow, senior strategist at Westpac Banking Corp in Sydney, told Bloomberg. “Any signs that Treasuries’ Trump tantrum is waning will hurt yield-sensitive dollar-yen.”

Bucking the trend, shares of Time rallied, trading 20.3 percent higher as of 1.28pm in New York, after the New York Post reported the publisher had rejected a takeover bid from billionaire investor Edgar Bronfman Jr. Bronfman, who is teaming up with Len Blavatnik’s Access Industries, recently submitted a bid to buy the company for US$18 a share, according to the newspaper.

In Europe, the Stoxx 600 Index finished the day with a 0.8 percent decline from the previous close. The UK’s FTSE 100 Index dropped 0.6 percent, while France’s CAC 40 Index retreated 0.9 percent, and Germany’s DAX Index shed 1.1 percent.

European bank shares fell. Up to eight Italian banks risk failing if Prime Minister Matteo Renzi loses a December 4 referendum on constitutional reform, the Financial Times reported on Sunday.

Oil prices rose. OPEC ministers are struggling to finalise the details of an agreement to curb production to stem a global glut. Disagreements over the production levels of Iran and Iraq remained a stumbling block in a Monday meeting, according to Reuters. 

“Saudi Arabia and Iran are all playing very strong negotiation tactics,” Abhishek Deshpande, chief energy analyst at Natixis SA in London, told Bloomberg. "The problem for Saudi Arabia is that this isn’t the 1980s and 1990s, when it could use its clout and expect others to follow. Today members like Iran and Iraq are equally strong and their agenda is to ensure they get a large market share.”

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar trades near 2019 low on Aussie rate outlook, China worries
Short window left to lock in good interest rates on term deposits
MediaWorks breakeven stymied by radio
Loan-to-value restrictions effective but have some drawbacks - RBNZ
Yili deal a timely cash injection for Westland farmers - ANZ
AFT interested in medicinal cannabis but says it's not commercially viable yet
Serko chalks up another year of 28% sales growth, profit dips on acquisition adjustment
NZ first-quarter retail sales grow 0.7%, slightly better than expected
SkyCity poised to enter online gaming space
AFT narrows net loss, turns cash flow positive

IRG See IRG research reports