Nasdaq Poised for Gains as Apple Shares Rally – Fox Business

U.S. stocks rose at the open on Wednesday, boosted by earnings from Apple and Boeing, but focus could shift later in the day to the Federal Reserve’s first two-day policy meeting of the year.

The Dow Jones industrial average rose 30.34 points, or 0.17 percent, to 17,417.55, the S&P 500 gained 11.14 points, or 0.55 percent, to 2,040.69 and the Nasdaq Composite added 60.55 points, or 1.29 percent, to 4,742.05.

The Fed is expected to signal it remains on track to begin raising interest rates later this year, as it shows confidence that low inflation and rising risks from abroad have yet to derail the U.S. economic recovery.

Nasdaq futures rallied more than 1 percent, powered by an 8.1 percent advance in Apple shares. Apple’s quarterly results smashed Wall Street expectations with record sales of big-screen iPhones in the holiday shopping season, which helped the company post the largest profit in corporate history.

Boeing added 3.2 percent premarket after handily beating top- and bottom-line expectations.

The expected gains in major equity indexes come a day after a sharp selloff on Wall Street, triggered by downbeat earnings by Microsoft and Caterpillar.

“We’ve had fairly significant earnings numbers, substantial misses and substantial wins that justify strong market movements,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

Regarding the Fed, Jankovskis said he doesn’t expect any change in policy, “but it’s all about how they talk about markets and how markets affect their decisions.”

S&P 500 e-mini futures were up 6 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a higher open. Dow Jones industrial average e-mini futures rose 13 points and Nasdaq 100 e-mini futures added 43 points.

Yahoo gained 4.5 percent after it unveiled plans to spin off its 15 percent stake in Alibaba Group Holding, responding to pressure to hand over to shareholders its e-commerce investment valued at roughly $40 billion.

U.S. Steel Corp’s shares added 8.4 percent the day after its profit beat expectations. Though the company warned that low oil prices and the strong U.S. dollar could negatively impact its business in 2015, it said the potential for higher consumer spending could help lift demand. (Reporting by Rodrigo Campos; Editing by Chizu Nomiyama and Nick Zieminski)

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Wall Street opens up on Apple, Boeing boost – Reuters

Traders work on the floor of the New York Stock Exchange, May 26, 2009.  REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange, May 26, 2009.

Credit: Reuters/Brendan McDermid


(Reuters) – U.S. stocks rose at the open on Wednesday, boosted by earnings from Apple and Boeing, but focus could shift later in the day to the Federal Reserve’s first two-day policy meeting of the year.

The Dow Jones industrial average .DJI rose 30.34 points, or 0.17 percent, to 17,417.55, the S&P 500 .SPX gained 11.14 points, or 0.55 percent, to 2,040.69 and the Nasdaq Composite .IXIC added 60.55 points, or 1.29 percent, to 4,742.05.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

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Global shares wilt, dollar nervous before Fed outcome; Apple outperforms – Reuters

A cameraman films a stock quotation board at the Tokyo Stock Exchange in Tokyo December 15, 2014. REUTERS/Yuya Shino

A cameraman films a stock quotation board at the Tokyo Stock Exchange in Tokyo December 15, 2014.

Credit: Reuters/Yuya Shino


(Reuters) – Asian stocks showed some resilience on Wednesday as investors speculated whether the Federal Reserve could take a dovish turn in its post-meeting statement later in the session, amid signs a stronger dollar was hurting U.S. corporate profits.

Apple Inc (AAPL.O) also provided some relief after the bell as record iPhone sales helped it beat expectations, sending its stock up more than 5 percent.

Yahoo Inc (YHOO.O) gained more than 6 percent in after-hours trading on its plans to spin off its 15 percent stake in China’s Alibaba Group Holding Ltd (BABA.N), responding to pressure to hand its prized e-commerce investment over to shareholders.

Those moves helped U.S. stock futures ESc1 rise 0.7 percent in Asia even as earnings from other U.S. majors generally disappointed, with multinationals from DuPont (DD.N) to Microsoft Corp (MSFT.O) complaining that a strong U.S. dollar was hurting profits.

European shares were expected to keep their bullish tone since the European Central Bank unveiled quantitative easing last week, with spreadbetters seeing rise of around one percent in Britain’s FTSE .FTSE, Germany’s DAX .GDAX and France’s CAC40 .FCHI.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.2 percent to hit a four-month high while the Nikkei .N225 also gained 0.2 percent to one-month high.

“The ECB quantitative easing was very powerful. Asian markets saw big fund inflows. The falls in oil prices reduced inflation risk, allowing many central banks in emerging markets to ease policy,” said Yukino Yamada, senior strategist at Daiwa Securities

Singapore’s central bank in fact eased monetary policy unexpectedly on Wednesday ahead of its scheduled review in April, joining a growing list of central banks that took steps to counter disinflation and slowing growth.

The latest U.S. economic news was mixed with surprisingly soft durable goods orders, but notable strength in housing and consumer sentiment.

Soft business investment and corporate earnings stoked talk the Fed would have to acknowledge the more difficult environment in its policy statement at 1400 GMT.

So far, the Fed has stuck by plans to raise interest rates around the middle of 2015, but markets have relentlessly pushed the timing out to year-end and are plotting a much lower trajectory for future hikes.

Fed funds imply a rate of only 45 basis points by December, compared to the current effective funds rate of 12 basis points.

“The market now thinks a rate hike around June is unlikely. So if the Fed does not change its tone, the market will take it as a bit more hawkish than expected,” said Tomoaki Shishido, fixed income analyst at Nomura Securities.

Just the risk of a dovish turn was enough to force speculators to cut back on crowded short positions in the euro, lifting the common currency to $1.1372 EUR= and away from Monday’s 11-year low of $1.1098.

The dollar dipped to 117.92 yen JPY= and retreated against a basket of major currencies to 94.092 .DXY, off an 11-year high of 95.481 hit on Friday.

In commodity markets, oil prices were pressured by news U.S. oil stockpiles surged by nearly 13 million barrels last week. [API/S]

Brent crude oil LCOc1 dipped to $49.01 a barrel while U.S. crude oil futures CLc1 slipped to $45.57.

(Editing by Shri Navaratnam and Eric Meijer)

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Asian Equities Ease Before Fed – MarketPulse (blog)

Asian stock markets followed Wall Street into the red on Wednesday, while the dollar was on edge following speculation the Federal Reserve could take a dovish turn in its post-meeting statement later in the session.  Apple Inc (AAPL.O) provided some relief after the bell as record sales of its iPhone line helped it beat expectations, sending its stock up more than 5 percent, helping to lift U.S. stock futures ESc1 by 0.3 percent.

But earnings from other majors generally disappointed, with multinationals from DuPont to Microsoft Corp (MSFT.O) complaining that a strong U.S. dollar was hurting profits.  That left a soggy feel to Asian trade and Australia’s main index .AXJO eased 0.2 percent while the Nikkei .N225 dropped 0.1 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off a slim 0.1 percent.  On Wall Street, the Dow .DJI ended with losses of 1.65 percent, while the S&P 500 .SPX fell 1.34 percent and the Nasdaq .IXIC 1.89 percent.

Reuters

Stuart McPhee
Stuart McPhee has nearly 20 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Living in Melbourne, Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee
Stuart McPhee

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Global shares wilt, dollar nervous before Fed outcome; Apple outperforms – The Fiscal Times

SYDNEY/TOKYO (Reuters) – Asian stock markets followed Wall Street into the red on Wednesday, while the dollar was on edge following speculation the Federal Reserve could take a dovish turn in its post-meeting statement later in the session.

Apple Inc provided some relief after the bell as record sales of its iPhone line helped it beat expectations, sending its stock up more than 5 percent, helping to lift U.S. stock futures by 0.3 percent. But earnings from other majors generally disappointed, with multinationals from DuPont to Microsoft Corp complaining that a strong U.S. dollar was hurting profits.That left a soggy feel to Asian trade and Australia’s main index eased 0.2 percent while the Nikkei dropped 0.1 percent.MSCI’s broadest index of Asia-Pacific shares outside Japan was off a slim 0.1 percent.On Wall Street, the Dow ended with losses of 1.65 percent, while the S&P 500 fell 1.34 percent and the Nasdaq 1.89 percent.Nine of the 10 primary S&P 500 sectors fell, with tech off 3.3 percent in its biggest one-day drop since November 2011. Shares in Microsoft slid more than 10 percent, while Caterpillar shed 7 percent.The latest U.S. economic news was mixed with durable goods orders surprisingly soft, but notable strength was seen in housing and consumer sentiment.Soft business investment and corporate earnings stoked talk the Fed would have to acknowledge the more difficult environment in its policy statement at 1400 GMT.Further fuelling such expectations, Singapore’s central bank unexpectedly eased policy ahead of its scheduled review, joining a growing list of central banks that took steps to counter disinflation and slowing growth.So far, the U.S. central bank has stuck by plans to raise interest rates around the middle of 2015, but markets have relentlessly pushed out the timing to year-end and are plotting a much lower trajectory for future hikes.Fed funds imply a rate of only 45 basis points by December, compared to the current effective funds rate of 12 basis points.”The market now thinks a rate hike around June is unlikely. So if the Fed does not change its tone, the market will take it as a bit more hawkish than expected,” said Tomoaki Shishido, fixed income analyst at Nomura Securities.Just the risk of a dovish turn was enough to force speculators to cut back on crowded short positions in the euro, lifting the common currency to $1.1333 and away from Monday’s 11-year low of $1.1098.The dollar dipped to 118.09 yen and retreated against a basket of major currencies to 94.089 , off an 11-year high of 95.481 hit on Friday.In commodity markets, oil prices were pressured by news U.S. oil stockpiles surged by nearly 13 million barrels last week. [API/S]Brent crude oil dipped to $49.02 a barrel while U.S. crude oil futures slipped to $45.50.(Editing by Shri Navaratnam and Eric Meijer)/.dxy/.splrct/.ixic/.spx/.dji/.miapj0000pus/.n225/.axjo

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Stocks, dollar fall after weak US durables data, earnings – WHBL Sheboygan

Monday, January 26, 2015 6:39 p.m. CST

By Caroline Valetkevitch

NEW YORK (Reuters) – World stock indexes fell on Tuesday following disappointing company earnings, while the dollar retreated after an unexpected decline in U.S. durable goods orders.

All three major U.S. stock indexes ended more than 1 percent lower, with shares of Microsoft , down 9.3 percent, and Caterpillar , down 7.2 percent, leading the way down.

Their results were among the latest disappointments in the current U.S. earnings period, which has raised worries about the profit picture given the recent slump in oil prices, weaker global demand and the stronger dollar.

Weak results at companies such as Siemens and Philips weighed on European stocks.

“People may not be aware of … what the ripple effects of oil’s weakness will be. There are a lot of companies that are going to be adversely impacted,” said Jim O’Donnell, chief investment officer at investment advisors Forward in San Francisco.

The decline in durable goods orders also pressured U.S. stocks. The dollar retreated following the data and on speculation the Federal Reserve might hold off on raising interest rates for longer than expected. The U.S. central bank is due to release a policy statement on Wednesday.

U.S. Commerce Department data showed non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, unexpectedly fell last month. A separate report, however, showed U.S. consumer confidence rose to its highest since 2007 in January.

On Wall Street, the Dow Jones industrial average ended down 291.49 points, or 1.65 percent, to 17,387.21, the S&P 500 lost 27.54 points, or 1.34 percent, to 2,029.55 and the Nasdaq Composite fell 90.27 points, or 1.89 percent, to 4,681.50.

A snowstorm in the U.S. Northeast kept many investment banks and fund managers on skeleton staff, though the main exchanges were open.

MSCI’s global share index fell 0.4 percent while an index of European shares closed down 0.8 percent.

The euro rose 1.24 percent to $1.13760, off a session high $1.14230 on the EBS trading platform. That pulls it further away from Monday’s 11-year low of $1.1098 after voters in Greece elected an anti-bailout government.

Investors have bid the dollar up, anticipating that the Fed will start to raise rates around mid-year as the U.S. economy recovers growth momentum at the same time as major central banks in Europe and Japan are loosening policies to spur activity.

Russia was also in the spotlight after a cut to its credit rating dealt a further blow to the rouble, though by Tuesday the currency had regained some ground against the dollar .

The cost of insuring exposure to Russia’s debt rose after Standard & Poor’s cut Russia’s sovereign credit rating to ‘junk’ late on Monday, citing weakened economic growth prospects and Western sanctions over Ukraine.

U.S. Treasury debt prices ended mixed after 30-year yields touched record lows amid data-driven worries about sputtering world growth. Thirty-year bonds were last off 2/32 in price to yield 2.40 percent. Earlier the yield hit a record low of 2.328 percent after the durable goods data.

In commodity markets, oil rose as a weaker dollar propped up commodities priced in the currency. U.S. crude oil futures settled at $46.23 a barrel, up $1.08, while Brent settled at $49.60, up $1.44.

(Additional reporting by Ryan Vlastelica and Daniel Bases in New York; and Lionel Laurent, John Geddie, Francesco Canepa, Jemima Kelly and Karin Strohecker; Editing by Janet Lawrence, Dan Grebler and James Dalgleish)

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Market Wrap: Stocks Drop on Caterpillar, Microsoft Earnings – DailyFinance

US Markets Face Uncertainty After Greek ElectionsAndrew Burton/Getty ImagesBy Ryan Vlastelica

NEW YORK — U.S. stocks closed more than 1 percent lower Tuesday as disappointing results from a number of bellwether companies pointed to weakening conditions, while an unexpected decline in durable goods orders also weighed on sentiment.

The day’s losses were broad, with nine of the 10 primary S&P 500 sectors lower on the day, though tech was the biggest drag by far. The group lost 3.3 percent in its biggest one-day drop since November 2011, in the wake of results from industry bellwether Microsoft. Industrial shares fell, led by Caterpillar.

The two names were the biggest decliners on the Dow, but fellow components Procter & Gable (PG) and DuPont (DD) also tumbled.

Microsoft (MSFT) fell 9.3 percent to $42.66 a day after the main engine of its historic earnings power — selling Windows and Office to big businesses — showed signs of waning.

Heavy machinery marker Caterpillar (CAT) gave an outlook below expectations, warning that the recent plunge in oil prices would hurt its energy equipment business. Shares dropped 7.2 percent to $79.85.

There’s clearly a lot of froth baked into certain areas of tech, while Caterpillar is giving tangible evidence that things can go down more than they already have.

“There’s clearly a lot of froth baked into certain areas of tech, while Caterpillar is giving tangible evidence that things can go down more than they already have,” said Jim O’Donnell, chief investment officer at Forward in San Francisco.

“People may not be aware of the sensitivities that heavy industrial guys have to the oil cycle, or what the ripple effects of oil’s weakness will be. There are a lot of companies that are going to be adversely impacted.”

With 24 percent of the S&P 500 having reported, 70.6 percent of companies have topped earnings expectations while 55.5 percent have beaten on revenue, according to Thomson Reuters data. That compares with the long-term average of 63 percent for earnings and 61 percent for revenue.

Still, many multinational companies disappointed this quarter, with the stronger dollar a common culprit. P&G was one of the companies pressured by a stronger dollar, sending shares down 3.4 percent to $86.49.

After the market closed, Apple (AAPL) rose 5.4 percent to $115 after it posted better-than-expected revenue growth, along with record sales of its iPhone line.

AT&T’s revenue rose more than expected in the latest quarter. Yahoo reported its results and unveiled a plan for a tax-free spin-off of its 15 percent stake in China’s Alibaba Group Holding (BABA), a first step in a highly anticipated process to unwind the holding, valued at roughly $40 billion.

Shares of AT&T (T) rose 1.8 percent to $33.40 after the bell, while Yahoo (YHOO) added 7.7 percent to $51.69.

The Dow Jones industrial average (^DJI) fell 291.49 points, or 1.65 percent, to 17,387.21, the Standard & Poor’s 500 index (^GPSC) lost 27.54 points, or 1.34 percent, to 2,029.55 and the Nasdaq composite (^IXIC) dropped 90.27 points, or 1.89 percent, to 4,681.50.

Adding to the day’s weakness, a gauge of U.S. business investment plans unexpectedly fell in December, another sign that slowing global growth and falling crude oil prices were having an impact on the economy.

On the plus side, consumer confidence posted its highest reading since August 2007. That helped indexes recover from their lows of the session; the Dow earlier fell as much as 2.2 percent.

Declining issues outnumbered advancing ones on the NYSE by 1,726 to 1,337, for a 1.29-to-1 ratio; on the Nasdaq, 1,710 issues fell and 1,029 advanced, for a 1.66-to-1 ratio favoring decliners.

The S&P 500 posted 41 new 52-week highs and 10 new lows; the Nasdaq composite recorded 57 new highs and 49 new lows.

What to watch Wednesday:

  • Federal Reserve policymakers meet to set interest rates and release statement at 2 p.m. Eastern time.

These selected companies are scheduled to release quarterly financial results:

  • ADT (ADT)
  • Ameriprise Financial Services (AMP)
  • Anthem (ANTM)
  • Biogen Idec (BIIB)
  • Boeing (BA)
  • Brinker International (EAT)
  • Energizer Holdings (ENR)
  • Facebook (FB)
  • Fiat Chrysler (FCAU)
  • General Dynamics (GD)
  • Hess (HES)
  • International Paper (IP)
  • McCormick & Co. (MKC)
  • Praxair (PX)
  • Progressive (PGR)
  • Qualcomm (QCOM)
  • T. Rowe Price (TROW)
  • Tupperware Brands (TUP)
  • Vertex Pharmaceuticals (VRTX)
  • Children watch what you do, and they learn by example. Without getting into too much detail, show them how you handle your money so they can see the way it should be done. When you plan the family vacation, share with them how you’re deciding where to go based on what you can afford. When it’s time to go school clothes shopping, explain how you can buy them one just really expensive pair of sneakers or the cheaper pair plus other stuff like that cool new backpack.

    1. Explain your spending decisions

  • We live in a world where we expect things can make us happy. Help your kids understand that experiences — seeing the world, exploring and learning, spending time with loved ones — are so much more important than any stuff could be. Nurture their creativity. Feed their curiosity. Make their lives rich with experience, and they’ll learn to be content no matter how much money they have.

    2. Emphasize experiences over things

  • You don’t need to break the bank to have a good time. Help your kids understand that a frugal life doesn’t have to be a boring life by choosing entertainment options that are high in fun but low in cost. It costs nothing to walk through a local park and plan a nature treasure hunt. It costs nothing to give your kids a trunk full of your old clothes and makeup and let them play dress-up. It costs nothing to set up a tent in the backyard and let them “camp out” for the night. Focus on fun that’s creative, interactive, and physical. Your kids will learn you don’t need to spend a ton of money to have a good time.

    ​3. Show them how to have fun on the cheap

  • Making your kids work, in exchange for money, helps them understand that money “doesn’t grow on trees” and that Mom and Dad aren’t their personal ATM. Budgeting their allowance also teaches the importance of good stewardship of their money; when they know they’ve only got so many dollars for the week, they’re more likely to think twice about whether that candy bar or comic book is really worth purchasing. They also learn to make tradeoffs: they can afford either the comic book or the candy bar, but not both.

    4. Give them an allowance

  • When you give your kids their allowance each week, help them divide it into three jars: One for spending money, which they can use right now on anything they want, one for savings, which means putting it aside for things they’ll want in the future, and one for giving to a cause of their choice, like animals, the environment, or childhood cancer. Help your children develop the habit of saving for a goal, such as a big toy, a trip to Chuck E. Cheese or a new video game. This will help them learn delayed gratification and the importance of putting money aside.

    5. Instill a savings habit

  • Frugality isn’t about saying “no” all the time; it’s about making the most of the money you’ve got. Help your kids understand this by turning it into a fun game. When you go grocery shopping, challenge them to find the cereal that’s the least expensive. When it’s time to plan their birthday party, tell them you’re willing to spend so many dollars and work with them to plan a fun bash within that budget.

    6. Make it a game

  • Kids love helping out with grownup tasks. If you’re fixing the pipes under the sink, ask your child to hand you tools and explain what you’re doing as you work. If you’re washing the car, let them lend a hand. If you’re planting a veggie garden, ask them to pull weeds or water the plants. Use these moments to teach them the value of fixing things yourself and putting in a little elbow grease. And if your child is extra-helpful, give them a bonus –- and help them put that money into the savings jar.

    7. Invite them to DIY

  • Reduce, reuse and recycle. We live in a throwaway society where we’re always looking for the newest gadget and tossing things in the trash the instant they show a sign of wear. Teach your kids the value of making things last and reducing waste by doing things like mending clothes when they rip and turning old milk cartons and egg containers into arts and crafts.

    8. Practice the 3 R’s of adult life

  • Help your kids to understand the gimmicks and false promises advertisers use to try to entice you into buying their products. Once they understand how advertising ropes us in, they’ll be less susceptible to ads and marketing.

    9. Debunk advertising

  • Every kid has said, at one point or another, that they “really need” something because all their friends have it, or they saw it on TV, or any number of other reasons. Gently correct your child when they use this language and explain the difference between something you really, truly need and something you merely want. Help them to understand that money should first be spent on needs, and that you can’t expect to get everything that you want.

    10. Explain the difference between needs and wants

  • More from Paula Pant

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Wall Street falls on earnings, but indexes well off lows – WHTC

Tuesday, January 27, 2015 7:45 a.m. EST

By Ryan Vlastelica

NEW YORK (Reuters) – U.S. stocks fell in a broad decline on Tuesday, with the Dow seeing outsized losses after several blue chip components’ results pointed to weakening conditions, while an unexpected decline in durable goods orders also weighed on sentiment.

Tech shares were the big drag on the day, falling 2.4 percent in their biggest one-day drop since October, in the wake of results from industry bellwether Microsoft. Industrial shares also underperformed, led by a decline in Caterpillar.

The two names were the biggest decliners on the Dow, but fellow components Procter & Gable and Du Pont Co also tumbled on the day. Only one component of the 30-stock index, Johnson & Johnson , was in positive territory.

Microsoft fell 8.5 percent to $43 a day after the main engine of its historic earnings power – selling Windows and Office to big businesses – showed signs of waning. Heavy machinery marker Caterpillar gave an outlook below expectations, warning that the recent plunge in oil prices would hurt its energy equipment business. Shares dropped 7.5 percent to $79.56.

“There’s clearly a lot of froth baked into certain areas of tech, while Caterpillar is giving tangible evidence that things can go down more than they already have,” said Jim O’Donnell, chief investment officer at Forward in San Francisco.

“People may not be aware of the sensitivities that heavy industrial guys have to the oil cycle, or what the ripple effects of oil’s weakness will be. There are a lot of companies that are going to be adversely impacted.”

With 24 percent of the S&P 500 having reported, 70.6 percent of companies have topped earnings expectations while 55.5 percent have beaten on revenue, according to Thomson Reuters data. That compares with the long-term average of 63 percent for earnings and 61 percent for revenue.

Many multinational companies disappointed this quarter, with the stronger dollar a common culprit. P&G was one of the companies pressured by a stronger dollar, sending shares down 3.6 percent to $86.38.

At 2:05 p.m. (1405 GMT) the Dow Jones industrial average fell 239.72 points, or 1.36 percent, to 17,438.98, the S&P 500 lost 20.18 points, or 0.98 percent, to 2,036.91 and the Nasdaq Composite dropped 64.41 points, or 1.35 percent, to 4,707.35.

Adding to the day’s weakness, a gauge of U.S. business investment plans unexpectedly fell in December, another sign that slowing global growth and falling crude oil prices were having an impact on the economy.

On the plus side, consumer confidence posted its highest reading since August 2007. That helped indexes recover from their lows of the session; the Dow earlier fell as much as 2.2 percent.

Declining issues outnumbered advancing ones on the NYSE by 1,697 to 1,339, for a 1.27-to-1 ratio; on the Nasdaq, 1,560 issues fell and 1,093 advanced, for a 1.43-to-1 ratio favoring decliners. The S&P 500 was posting 36 new 52-week highs and 10 new lows; the Nasdaq Composite was recording 48 new highs and 42 new lows.

(Editing by Nick Zieminski)

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Stocks, dollar fall after weak US durables data, earnings – Reuters Canada

By Caroline Valetkevitch



NEW YORK (Reuters) – Global stock indexes fell on Tuesday following disappointing U.S. corporate earnings results and an unexpected decline in U.S. durable goods orders, while the dollar also retreated.



All three major U.S. stock indexes were down more than 1 percent in midday trading.



Shares of Microsoft MSFT.O, down 9.1 percent, and Caterpillar CAT.N, down nearly 8 percent, were among the biggest drags on U.S. stocks. Microsoft’s results showed the main engine of its historic earnings power, selling Windows and Office software to big businesses, is waning. Caterpillar’s quarterly profit came in below analysts’ expectations and the company warned that lower oil prices will hurt 2015 results.



The dollar fell following release of the durable goods data and on speculation the Federal Reserve might hold off on raising interest rates longer than currently expected. The U.S. central bank is due to release a policy statement on Wednesday.



“U.S. equities could come under pressure as investors ratchet down their growth estimates for the U.S. economy,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.



“There was just too much hype about the U.S. economy having risen into a new and higher growth channel. We’re still stumbling along.”



U.S. Commerce Department data showed non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, unexpectedly fell last month. A separate report, however, showed U.S. consumer confidence rose to its highest since 2007 in January. [ID:nL1N0V60ZA]



On Wall Street, the Dow Jones industrial average .DJI fell 345.05 points, or 1.95 percent, to 17,333.65, the S&P 500 .SPX lost 28.86 points, or 1.4 percent, to 2,028.23 and the Nasdaq Composite .IXIC dropped 84.08 points, or 1.76 percent, to 4,687.69.



A snowstorm in the U.S. Northeast kept many investment banks and fund managers on skeleton staff, though the main exchanges were open.



MSCI’s global share index .MIWD00000PUS was down 0.4 percent while an index of European shares .FTEU3 closed down 0.8 percent.



The euro rose 1 percent to $1.1345 EUR=, off the session high $1.14230. That pulls it further away from Monday’s 11-year low of $1.1098 hit after voters in Greece elected an anti-bailout government.



Investors widely expect the Fed to acknowledge the uncertain global outlook and stick to its promise to be patient on tightening monetary policy. However its timetable remains for higher rates by mid-year, a trajectory that presages further broad-based gains for the dollar.



The cost of insuring exposure to Russia’s debt rose after Standard & Poor’s cut Russia’s sovereign credit rating to “junk” late on Monday, citing weakened economic growth prospects and Western sanctions over Ukraine.



U.S. Treasury debt prices rose, with 30-year yields touching record lows after the U.S. economic data. Thirty-year bonds US30YT=RR were last up 1-7/32 in price to yield 2.3356 percent. Earlier the yield hit a record low of 2.328 percent.



In commodity markets, oil rose as a weaker dollar propped up commodities priced in the currency. Brent LCOc1 was up $1.05 at $49.21 barrel, while U.S. crude CLc1 rose $1.06 to $46.21.





(Additional reporting by Rodrigo Campos in New York; and Lionel Laurent, John Geddie, Francesco Canepa, Jemima Kelly and Karin Strohecker; Editing by Janet Lawrence, Dan Grebler and James Dalgleish)


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Wall Street Stock Slide Slows in Afternoon Trading – DailyFinance

US Markets Face Uncertainty After Greek ElectionsAndrew Burton/Getty Images By ALEX VEIGA

U.S. stocks fell in afternoon trading Tuesday as disappointing earnings outlooks from Caterpillar and other big companies raised concerns about future profit growth. The major stock indexes pared back some of their losses from earlier in the day.

Keeping Score: The Dow Jones industrial average (^DJI) was down 241 points, or 1.4 percent, to 17,437 as of 2:04 p.m. Eastern time. The blue-chip average dropped as much as 390 points earlier. The Standard & Poor’s 500 (^GPSC) shed 20 points, or 1 percent, to 2,036. The Nasdaq composite (^IXIC) slid 64 points, or 1.4 percent, to 4,707.

Quotable: “It’s a confluence of things,” said Dan Greenhaus, chief strategist at the brokerage BTIG in New York. “You have growing nervousness about Greece, Chinese industrial profits sinking, and then came the weak reports from the global behemoths. It’s a recipe for the kind of day we’re having.”

Sector View: Nine of the 10 sectors in the S&P 500 fell, with technology stocks dropping the most. Utility stocks, where investors go when they’re looking for safety, were the only industry group to rise.

PC Problems: Microsoft (MSFT) shares tumbled a day after the company’s noted in its latest quarterly results that licensing revenue for its Windows operating system fell 13 percent due in part to weak PC sales in China and Japan. Management also warned that a strong dollar will dent revenue by 4 percent in its fiscal third quarter. Microsoft shares slid $4.02, or 8.5 percent, to $42.99.

Rough Quarter: Caterpillar’s (CAT) stock fell 7.5 percent after the heavy equipment maker was hurt in the fourth quarter by restructuring costs and issued a weak outlook. The stock shed $6.47 to $79.57.

Economic Worries: The Commerce Department reported that orders for long-lasting manufactured goods dropped 3.4 percent in December, dragged lower by a big decline in demand for commercial aircraft. There was also weakness in a number of areas, with demand for machinery, computer and primary metals all down. Economists had been forecasting a small increase for December.

Housing Reports: Separate reports shed light on the housing market Tuesday. The Standard & Poor’s/Case-Shiller 20-city home price index showed that U.S. home prices rose at a modest pace in November, held back by weaker sales and a limited number of available houses. Meanwhile, the Commerce Department reported that sales of new U.S. homes accelerated 11.6 percent last month, a sign that home sales may improve after a lackluster 2014.

Currency Pain: Procter & Gamble (PG) fell 3.6 percent as the strong U.S. dollar cut into the consumer products maker’s second-quarter earnings. The company said that exchange rates will remain a challenge well into fiscal 2015, especially in the second half of its year. The stock slid $3.21 to $86.38.

Above the Rest: Lower fuel prices and steady demand for travel pushed American Airlines Group’s (AAL) earnings to a record high in the fourth quarter. CEO Doug Parker said Tuesday that 2015 is shaping up as another strong year. Even so, the company said that a key revenue figure would decline in the first quarter. That sent shares down $2, or 3.6 percent, to $53.45.

Merger Boost: Shares in Silicon Image (SIMG) vaulted 23 percent on news that the semiconductor maker is being acquired by rival Lattice Semiconductor (LSCC) for about $600 million in cash. Silicon Image rose $1.38 to $7.28. Lattice Semiconductor gained 61 cents, or 9.3 percent, to $7.19.

Energy: Benchmark U.S. crude rose 77 cents to $45.92 a barrel. Oil has plunged since June, when it traded above $100, on high supplies and weak growth in demand.

Bonds: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.79 percent from 1.83 late Monday.

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