Saturday, 15 December, 2018

Markets Right Now: White House downplays market plunge

The Toronto Stock Exchange Broadcast Centre is shown in Toronto The Toronto Stock Exchange Broadcast Centre is shown in Toronto
Ginger Lawrence | 11 October, 2018, 10:06

"Two weeks ago this kind of news would not have affected the market", he said.

This trend began with emerging markets, where companies are struggling with rising US interest rates and local currency depreciation - but it is now spreading to USA companies because of challenges to their profits margins.

The Dow fell 831 points, or 3.1 per cent, to 25,598.

When all the dust settled after a brutal session, the Dow Jones Industrial Average had lost 3.2 per cent or 830 points to finish at 25,498.74, in the biggest fall since February.

Technology stocks, the biggest winners in the market over the past year, took some of the worst losses.

Tech leaders Amazon (AMZN), Facebook (FB) and Netflix (NFLX) were all leading the market lower Wednesday while stodgier companies like food companies Smucker (SJM) and General Mills (GIS), gold miner Newmont (NEM) and bargain retailers Dollar General (DG) and Dollar Tree (DLTR) were trading higher.

The S&P/NZX50 was down 2.3 per cent today falling 204 points to 8845. It was at just 3.05 percent early last week.

Oil firms Hess Corp and Marathon Oil fell around 7 per cent as Chevron dropped 3 per cent ahead of the third-quarter earnings season.

"It can be pretty well validated by looking at monetary history that when you inflate the currency, distort interest rates, and live beyond your means and spend too much, there has to be an adjustment", Paul told RT on Tuesday, predicting that a stock market crash is just a matter of time. And tech stocks were getting hit particularly hard.

Japan's Nikkei 225 added 0.2 per cent, South Korea's Kospi dropped 1.1 per cent and the Hang Seng in Hong Kong gained 0.1 per cent. The S&P 500 was on track for its fifth straight decline. On Wednesday, the 10-year yield once again touched its highest level in seven years.

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The S&P 500 fell 54 points, or 1.9 percent, to 2,825.

Heavyweights Apple shed 1.6 percent and Amazon.com fell 2.5 percent.

The Nasdaq 100 Index plummeted more than four percent as Wall Street endured its sharpest one-day fall in months.

US stocks slipped Wednesday, putting the S&P 500 on course for a fifth consecutive session of declines as government-bond yields kept rising.

Microsoft dropped 5.4 percent to $106.16.

Gina Martin Adams, the chief equity strategist for Bloomberg Intelligence, said investors were concerned about the big increase in yields, which makes it more expensive to borrow money. The yield on the 10-year Treasury note rose to 3.22 percent.

Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices.

The small-cap Russell 2000 index, less sensitive than its larger peers to global worries such as trade and yields, was down 1 per cent at 1,605.60 points, below its 200-day moving average.

Benchmark U.S. crude oil fell 2.4 per cent to $73.17 a barrel in NY.

The rates rose Wednesday after the government released data showing the producer price index rose 0.2 percent in September and is up 2.8 percent on a year-over-year basis.