Shares flat on earnings, oil jumps on Middle East worry
Reuters
Published Apr 23, 2015 01:27PM ET
Shares flat on earnings, oil jumps on Middle East worry
By Chuck Mikolajczak
NEW YORK (Reuters) - Stocks in major markets shook off soft data in big economies to hold near the unchanged mark on Thursday, while oil prices climbed on Middle East tensions.
U.S. stocks were little changed. Some strong earnings from AT&T (N:T), up 2.6 percent to $33.73, and eBay (O:EBAY), up 3.7 percent to $58.84, and a rise in energy-related shares offset weaker manufacturing data along with lackluster reports on the housing and labor markets.
"There is a little bit less focus on the macro right now because the data is a little bit light, and more focused on the more bottom-up perspective, just because there is so much information," said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas in New York.
"We've seen a number of examples of stock prices going up, even though earnings guidance is going down because of currency. The concerns about the dollar are a little bit overdone."
A 0.7 percent gain in energy shares <.SPNY> also kept the S&P 500 near the flat line, as an escalation of a civil war in Yemen raised concerns about the security of supplies.
Brent crude LCOc1 jumped 3.3 percent at $64.80 a barrel, while U.S. crude CLc1 rose 3.2 percent to $57.93.
The Dow Jones industrial average (DJI) fell 11.48 points, or 0.06 percent, to 18,026.79, the S&P 500 (SPX) lost 1.08 points, or 0.05 percent, to 2,106.88 and the Nasdaq Composite (IXIC) dropped 2.48 points, or 0.05 percent, to 5,032.69.
European shares slipped, with Germany's DAX index underperforming following a disappointing purchasing managers' survey, while weak results from Ericsson hit technology stocks.
Overall, euro zone private sector business growth was weaker than forecast, despite help for exporters from a big fall in the euro and the March launch of a sovereign bond buying program from the European Central Bank.
MSCI's all-country world index (MIWD00000PUS) of equity performance in 46 countries inched up 0.12 percent, while the FTSEurofirst 300 index (FTEU3) of top European shares was off 0.53 percent at 1,619.71. Germany's DAX (GDAXI) dropped 1.2 percent.
Soft Chinese and Japanese manufacturing data served to boost expectations of more policy stimulus there, as Japan's Nikkei benchmark stock index (N225) touched a 15-year intraday high, while China's CSI300 index (CSI300) reached a seven year high.
U.S. Treasuries yields were little changed on Thursday with benchmark yields hovering near 3-1/2 week highs after a broad selloff in Treasuries, German Bunds and British Gilts on Wednesday.
Benchmark 10-year notes (US10YT=RR) were last down 4/32 in price to yield 1.984 percent.
Get The News You Want
The dollar (DXY) weakened 0.4 percent against a basket of major currencies in light of the soft U.S. data and waning fears over an imminent Greek exit from the euro zone.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.