Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
US Stocks Ease Back From Record Highs  10/27 09:06


   (AP) -- Stocks are off to a mixed start on Wall Street Wednesday, a day 
after the S&P 500 and the Dow Jones Industrial Average set their latest record 
highs. Several big technology companies were posting solid gains, led by 
Microsoft, which reported a 24% surge in profits last quarter as its cloud 
computing business bounded ahead. The S&P 500 was wobbling between small gains 
and losses in the early going, as was the Dow. The Nasdaq was up 0.5%. 
McDonald's was also up 3.3% after turning in results that beat forecasts. The 
yield on the 10-year Treasury fell to 1.57%.

   Global stock markets fell Wednesday after Australian inflation rose to a 
six-year high and a Chinese newspaper warned more real estate developers are 
likely to default on bonds, while investors looked ahead to U.S. economic 
growth data due out this week.

   London and Frankfurt opened lower, shrugging off strong U.S. corporate 
profit reports. Shanghai, Tokyo and Hong Kong declined.

   Australia reported inflation accelerated to an unexpectedly high level in 
the latest quarter, highlighting investor fears central banks might feel 
pressure to cool prices by pulling back stimulus that is pushing up stocks.

   Adding to unease about Chinese finance, an official newspaper, the Global 
Times, cited industry analysts as saying more developers are likely to default 
on bonds amid pressure from regulators to cut their debt levels.

   A midsize developer, Modern Land, said it missed a $250 million payment due 
Monday. Investors are watching whether one of the biggest developers, 
Evergrande Group, can avoid a default on 2 trillion yuan ($310 billion) of debt.

   Investors are "refusing to chase the carrots dangled by an impressive U.S. 
earnings season," said Jeffrey Halley of Oanda in a report.

   "China, once again, appears to be the culprit," Halley said. He said 
Australian inflation is "increasing nerves" that its central bank will shift 
from its ultra-dovish stance.

   In early trading, the FTSE 100 in London lost 0.3% to 7,253.67 and the DAX 
in Frankfurt sank 0.4% to 15,701.84. The CAC 40 in France gave up 0.3% to 

   On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones 
Industrial Average were off 0.1%.

   On Tuesday, the S&P 500 index rose 0.2% to its second high in two days, 
driven by strong earnings reports by some major companies. The Dow and Nasdaq 
composite edged up less than 0.1%.

   In Asia, the Shanghai Composite Index fell 1% to 3,562.31 after reports that 
China has halted freight trains bound to and from Europe due to border 
congestion. Also Tuesday, Washington revoked the license of a unit of 
state-owned China Telecom Ltd. to operate in the United States as a security 

   The Nikkei 225 in Tokyo lost less than 0.1% to 29,098.24 and the Hang Seng 
in Hong Kong declined 1.6% to 25,628.74.

   The Kospi in Seoul ended 0.8% lower at 3,025.49 while India's Sensex 
retreated 0.4% to 61,106.32.

   Sydney's S&P ASX 200 ended less than 0.1% higher after the Australian 
government reported underlying inflation accelerated by unexpectedly strong 0.7 
percentage points to an annual rate of 2.1% in the three months ending in 

   "A jump in Australian core inflation highlighted intensifying cost pressures 
in the global economy," said Anderson Alves of ActivTrades in a report.

   Investors were waiting for U.S. economic growth data due out Thursday that 
might influence whether the Federal Reserve changes its timeline for reducing 

   In energy markets, benchmark U.S. crude lost $1.20 to $83.45 per per barrel 
in electronic trading on the New York Mercantile Exchange. Brent crude, the 
price basis for international oils, shed 90 cents to $84.75 per barrel in 

   The dollar declined to 113.69 yen from Tuesday's 114.17 yen. The euro 
declined to $1.1590 from $1.1598.

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