850 N 4TH AVE. * WALLA WALLA, WA  99362
Walla Walla Office (509) 525-6510
Dayton Office (509) 382-2571
St. John Office (509) 648-3316
FAX (509) 529-6050

Office Hours: 7:30am to 12:00pm and 1:00pm to 4:30pm

 

Phone: 800-994-4290 Wednesday, May 23, 2018
 
Home
Northwest Grain Growers
My Account
Admin Login
  
 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Stocks Sink Late Tuesday               05/22 15:49

   Stocks faded Tuesday afternoon and finished the day mostly lower as 
industrial companies and retailers fell. Smaller and more U.S.-focused 
companies slumped after setting records the last few days.

   NEW YORK (AP) -- Stocks faded Tuesday afternoon and finished the day mostly 
lower as industrial companies and retailers fell. Smaller and more U.S.-focused 
companies slumped after setting records the last few days.

   Large industrial companies like Boeing, 3M and Caterpillar slipped, and 
retailers including Kohl's, AutoZone and Advance Auto Parts fell after 
releasing their quarterly results. Smaller companies had their worst day of the 
month as a winning streak that brought them to all-time highs came to an end.

   For most of the day stocks were on track for small gains. Automakers rose 
after China said it will reduce duties on imported cars in July, a sign the 
U.S. and China could resolve some of their differences on trade. Banks climbed 
as Congress prepared to loosen some of the rules that have governed the 
industry since the 2008 financial crisis.

   Stocks rose Monday as investors grew more hopeful that the trade dispute 
between the U.S. and China will be resolved without major effects on the global 
economy. But Marina Severinovsky, an investment strategist at Schroders, said 
the two countries appear to be looking for easy wins without addressing larger 
and more difficult issues, like China's technology policies and its handling of 
intellectual property.

   That might pacify the market for now because the global economy is doing 
well, but she thinks tensions will eventually flare up again.

   "The more competitive the Chinese become in higher-end industries ... the 
more this is really going to become an issue," she said. "There will be more 
industries and companies clamoring for protection."

   The S&P 500 index slid 8.57 points, or 0.3 percent, to 2,724.44. The Dow 
Jones industrial average lost 178.88 points, or 0.7 percent, to 24,834.41. The 
Nasdaq composite fell 15.58 points, or 0.2 percent, to 7,378.46. The Russell 
2000 index of smaller company stocks gave up 12.20 points, or 0.7 percent, to 
1,625.24 after it closed at record highs the last four days.

   J.C. Penney was one of the worst performers among both small companies and 
retailers. It fell 6 percent to $2.35 after it said Chairman and CEO Marvin 
Ellison will leave to become CEO of Lowe's. He worked at Lowe's rival Home 
Depot for 12 years before he was hired by J.C. Penney, which reported weak 
first-quarter results less than a week ago.

   Elsewhere, jeans retailer Guess fell 7.9 percent to $23.80. Kohl's had a 
strong second quarter, but said much of that strength came because a Mother's 
Day-related sale came earlier in the year. While that helped the company in the 
fiscal second quarter, it will hurt its sales in the third and fourth quarters. 
Kohl's sank 7.4 percent to $60.61.

   Banks fared better as the House of Representatives was expected to pass a 
bill that increases the threshold at which banks are deemed so big and so 
connected to the financial grid that if one were to fail it would cause major 
havoc. The legislation would roll back parts of the Dodd-Frank law, which was 
passed in the aftermath of the 2008 financial crisis. The measure passed the 
Senate in March with the support of Republicans and some Democrats.

   Banks reported record profits in the first quarter of the year as last 
year's corporate tax cut juiced their profits. BB&T Corp. gained 1.3 percent to 
$55.53 and Bank of America rose 1.1 percent to $30.89.

   Severinovsky, of Schroders, said the bill wouldn't make a major difference 
to banks, but it gave investors a reason to feel better about their prospects.

   "These are very different businesses than the way we remember them in 2009," 
she said, adding that banks have stronger balance sheets and are befitting from 
the improved economy and higher interest rates.

   China followed up on a promise it made in April by reducing auto import 
duties effective July 1. That follows pledges to buy more U.S. goods and end 
restrictions on foreign ownership in the industry. China is the world's biggest 
auto market by number of vehicles sold as consumer bought 24.7 million SUVs, 
sedans and minivans in 2017, compared with 17.2 million for the U.S., the 
next-biggest market, United States.

   Tata Motors of India advanced 4 percent to $22.91 and Fiat Chrysler gained 
1.3 percent to $22.62.

   Benchmark U.S. crude shed an early gain and fell 0.2 percent to $72.13 per 
barrel in New York. Brent crude, used to price international oils, rose 0.4 
percent to $79.57 per barrel in London.

   Wholesale gasoline rose 0.6 percent to $2.27 a gallon. Heating oil added 0.3 
percent to $2.28 a gallon. Natural gas jumped 3.5 percent to $2.91 per 1,000 
cubic feet.

   Gold rose 0.1 percent to $1,292 an ounce. Silver added 0.3 percent to $16.58 
an ounce. Copper rose 1.1 percent to $3.13 a pound.

   Bond prices were little changed. The yield on the 10-year Treasury note 
remained at 3.06 percent.

   The dollar declined to 111.02 yen from 111.11 yen. The euro rose to $1.1779 
from $1.1772.

   The German DAX, which was closed for a holiday Monday, jumped 0.7 percent 
and London's FTSE 100 added 0.2 percent. France's CAC 40 rose less than 0.1 
percent. Tokyo's Nikkei 225 lost 0.2 percent. Markets in Hong Kong and South 
Korea were closed for holidays.


(BE)

 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN