Sharechat Logo

While you were sleeping Apple takes a break

Wednesday 22nd August 2012

Text too small?

Wall Street gave up early gains as a decline in Apple shares weighed on the overall market and the Standard & Poor's 500 Index took a breather from a four-year high.

Shares of Apple fell, last 1.3 percent weaker, following yesterday's climb to a record that also lifted the company's market capitalisation to the highest in history.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.29 percent, the Standard & Poor's 500 Index slipped 0.15 percent, while the Nasdaq Composite Index fell 0.17 percent.

Earlier in the day, the S&P 500 climbed as high as 1,426.68, its highest since May 2008. And some expect further strength ahead.

"I am looking for new highs in the major indexes," Wayne Kaufman, chief market analyst at John Thomas Financial in New York, told Reuters. "Overall there is no one major negative that's out there right now that people are scared of."

In Europe, the Stoxx 600 Index ended the day with a 0.4 percent advance from the previous close. Stocks also gained in Germany, France and the UK.

Investors are betting the European Central Bank will take action to help lower borrowing costs for struggling euro-zone members notably Spain and Italy.

"The market has moved to the belief that [the ECB] is going to do whatever it takes," William Larkin, fixed income portfolio manager at Cabot Money Management in Salem, Massachusetts, told Reuters.

And those expectations helped push Spain's yields lower at today's auction of 12- and 18-month securities. The yield for bills maturing next August fell to 3.07 percent from 3.92 percent at a sale on July 17, according to Bloomberg News. The yield for the notes maturing in February 2014 dropped to 3.34 percent from 4.24 percent.

The euro also benefited, strengthening to its highest level since early July against both the greenback and the Japanese yen. The euro, at US$1.2469, had earlier climbed as high as US$1.2488, the strongest since July 5, and had reached 99.18 yen, the highest level since July 6.

"The euro continues to be buoyed by investors' selectively optimistic reading of official statements supporting bailout packages and the periphery," Noel Hebert, chief investment officer at Bethlehem, Pennsylvania-based Concannon Wealth Management, told Bloomberg. "We're still in this revolving door of crisis cycle with nothing getting resolved."

The UK, meanwhile, unexpectedly reported a budget deficit in July, underpinning the dire straits of the economy which has contracted for three consecutive quarters.

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:

Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
RBNZ expected to keep OCR at 1% but leave door open to more easing
Watch for signs of domestic and global corporate health this week
ANALYSIS: Govt will have to pay up for high-rise and other construction
23rd September 2019 Morning Report
RBNZ needs more resources, not more powers: Bascand
NZ dollar hovers near 4-yr low after IMF says downside risks have increased
MARKET CLOSE: NZ shares gain; index reweighting drives heavy trading in Kiwi, Kathmandu
NZ dollar sags after avalanche of data and central bank action

IRG See IRG research reports