Wall Street, stocks close mixed after sell-off
Stocks have closed mixed, with Wall Street exhausted from last week’s swoon and still nervous about losses at banks and elevated energy costs.
A pullback in crude oil prices provided only limited relief to investors, who largely stuck to the stocks of large companies. Blue chips are are regarded as safer assets during times of economic uncertainty.
“It’s hard for anyone to jump in whole hog after Friday,” said Thomas J Lee, equities analyst at JPMorgan. Soaring energy prices, as well as a huge jump in the unemployment rate, sent the Dow Jones industrial average plunging nearly 400 points on Friday.
“I think everyone’s going to watch oil, and I think it’s going to paralyse us for a while,” Lee said.
Crude prices dipped about four US dollars below 135 US dollars a barrel on the New York Mercantile Exchange Monday, but only after Friday’s 11 US dollars-a-barrel surge to a new record. With US petrol topping four dollars a gallon, consumers’ ballooning energy bills could force them to keep paring back spending on other items.
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Environmental Expert: EUR 100m EIB loan support to Kemira environmental research
environmental-expert.com talk: The European Investment Bank (EIB) is granting a loan up to EUR 100m to support the research, development and innovation activities of the Kemira Group (Kemira) in Finland. The R&D activities of Kemira aim to design more effective and efficient chemicals, often with clear environmental benefits. The finance documentation has been signed today in Helsinki by EIB Vice-President, Eva SREJBER, Kemira Oyj CEO, Harri KERMINEN and Kemira International Finance B.V. Director, Bart KOORNHOF.
The project concerns the continuation of Kemira group’s current RDI practices and will be carried out within its existing facilities.
Kemira Group, a Finnish technology-oriented chemicals group, is a leading European producer of pulp and paper chemicals, water purification and industrial chemicals as well as paints and coatings. Its long-term collaboration with universities, institutes of technology and research institutes and the group’s own research centres’ development projects form the foundation of its R&D activities in areas such as formulation science, water treatment and nanotechnology.
The project is in line with the European Council recommendations to increase and reinforce investment in human capital, research and innovation in order to strengthen the scientific base of European industry by encouraging undertakings in research and technological development activities. Supporting the European Union’s Lisbon Strategy, aimed at building a competitive knowledge and innovation-based European economy, is a priority for the EIB’s lending activity. Read more
Down oil and metals producers, U.S. stocks declined for a third day
Most U.S. stocks declined for a third day, led by raw-materials and energy producers, as the prospect of higher interest rates drove down oil and metals and the International Energy Agency lowered its forecast for fuel demand.
Barrick Gold Corp., the world’s biggest gold producer, and Newmont Mining Corp., the third-largest, slid the most since March. Exxon Mobil Corp. and Chevron Corp. sent energy producers in the Standard & Poor’s 500 Index to the biggest retreat in two months as oil fell more than $3 a barrel.
The S&P 500 slipped 3.32 points, or 0.2 percent, to 1,358.44. The Nasdaq Composite Index retreated 10.52, or 0.4 percent, to 2,448.94. The Dow Jones Industrial Average added 9.44, or 0.1 percent, to 12,289.76. China’s CSI 300 Index lost 8.1 percent to a 14-month low and Europe’s Dow Jones Stoxx 600 Index slid 0.7 percent. More than four stocks decreased for every three that gained on the New York Stock Exchange.
“The Fed appears to have indicated it will pause in reducing rates,” said John Carey, a Boston-based portfolio manger at Pioneer Investment Management, which manages about $300 billion. “There may be an expectation commodity prices will come down as the dollar goes up. That’s the knee-jerk reaction.” Read more
Stocks mostly lower on top of last week’s hefty losses
By MADLEN READ (AP)
Wall Street traded mostly lower Monday on top of last week’s hefty losses, with investors doubtful that a pullback in oil prices from record levels would last..
Jitters about the struggling financial sector — not to mention pure exhaustion from Friday’s swoon — added to the stock market’s weakness Monday.
“It’s hard for anyone to jump in whole hog after Friday,” said Thomas J. Lee, equities analyst at JPMorgan. Soaring energy prices, as well as a huge jump in the unemployment rate, sent the Dow Jones industrial average plunging nearly 400 points on Friday.
“I think everyone’s going to watch oil, and I think it’s going to paralyze us for a while,” Lee said.
Crude prices dipped by about $4 to $135 a barrel on the New York Mercantile Exchange Monday, but only after Friday’s $11-a-barrel surge to a new record. With U.S. gasoline topping $4 a gallon, consumers’ ballooning energy bills could force them to keep paring back spending on other items. Read more
Americans signing contracts buy existing homes
The number of Americans signing contracts to buy existing homes unexpectedly rose as the first national drop in prices since the 1930 s lured buyers back into the market in the West, Midwest and South.
The index of pending home resales jumped 6. 3 percent in April, the most since 2001, after a 1 percent drop in March, the National Association of Realtors reported Monday in Washington. The March reading was the lowest level since the group started keeping records eight years ago.
The figures may be a sign that the glut of 5 million unsold properties may be on the way down, which economists say is a prerequisite for stabilization in the industry. Federal Reserve Chairman Ben Bernanke warned last week that the economy will remain in danger of weakening further until housing reaches a bottom.
“We are seeing sales picking up notably where prices are coming down,” said Lawrence Yun, chief economist of the Realtors ’ group. “The first necessary thing is for sales to rise” and Monday’s data is a step in the right direction, he said.
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Dow Jones industrial market gained some support official
The Dow Jones industrial average fell almost 2.6 per cent on Friday, pointing to a weak start at other world markets today.
On Friday, the NZX 50 closed down about eight points after the market gained some support on Thursday when the New Zealand Reserve Bank signalled that official interest rates were likely to fall by the end of the year.
US crude’s dramatic US$10 jump on Friday - its biggest one-day gain in the history of the market - fuelled concerns about inflation and consumers’ spending power, a main driver of economic growth.
The price of oil thundered past a high it hit late last month as a result of weakness in the dollar and tensions in the Middle East.
Oil jumped nearly 9 per cent to the record US$139 a barrel, extending a two-day rally last week to more than US$16 as the slumping US dollar and mounting tensions between Israel and Iran attracted a stampede of buyers.
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Lenox Industrial: Inovative stimulus for New Hampshire Motor Speedway
An innovative economic stimulus program for race fans attending the Lenox Industrial Tools 301 at New Hampshire Motor Speedway will offer ticket holders the opportunity to have their mortgage or rent paid through the rest of the year, share in $10,000 worth of free gas or experience the luxury of suite level seats.
All race fans who have purchased a ticket by the close of business on June 25, will be eligible to receive these rewards. The winners will be announced as part of the pre-race ceremonies for the LENOX Industrial Tools 301 on Sunday, June 29.
“Our fans are our greatest asset,” said Jerry Gappens, executive vice president and general manager for the speedway. “In these challenging economic times, we need to recognize those who support the speedway by giving them an opportunity to enhance their experience with some innovative rewards. Today, people have to make choices on how they invest their time and money on entertainment. We want them to choose New Hampshire Motor Speedway and the LENOX Industrial Tools 301. This program is a thank you to our loyal ticket buyers and certainly is an incentive for those fans thinking about coming, but are still on the fence.”
The first part of the economic stimulus program is providing some relief from the ever-climbing gas prices. The speedway will be selecting 20 lucky fans attending the LENOX Industrial Tools 301 to each receive $500 gas cards from Sunoco. Read more