S&P falls on interest rate, trade concerns; P&G lifts Dow


By April Joyner

NEW YORK (Reuters) – The U.S. benchmark S&P 500 inventory index edged decrease on Friday as sturdy earnings from Procter & Gamble Co had been offset by ongoing issues about rising rates of interest and tensions over commerce coverage denting financial development.

Shares of Procter & Gamble jumped 8.Eight p.c after the patron items firm reported a shock rise in first-quarter gross sales. The climb in Procter & Gamble shares lifted the Dow and helped advance the S&P 500 client staples index 2.three p.c.

The patron staples sector, which has underperformed the broader S&P 500 this 12 months, was set for its greatest each day share acquire since August 2015.

But current jitters concerning world commerce tensions and rising rates of interest, which have weighed U.S. shares this week, continued.

The S&P 500 index closed beneath its 200-day shifting common, a key statistical indicator of long-term worth traits. Defensive sectors – utilities and actual property along with client staples – led the S&P in share features, signalling warning amongst buyers.

Commerce coverage worries weighed on shares of Honeywell Worldwide Inc, which erased early features to finish 1.1 p.c decrease after the commercial conglomerate stated it was seeing slower development in China and that tariffs would doubtlessly price it “a whole bunch of tens of millions” of {dollars} in 2019.

U.S. dwelling gross sales fell in September by probably the most in over two years because the housing market continued to wrestle regardless of power throughout the broader financial system. Residence gross sales have now fallen for six straight months, and rising mortgage charges are anticipated to sluggish demand.

“There are nonetheless issues you may see out there concerning whether or not or not increased rates of interest are going to weaken development,” stated Quincy Krosby, chief market strategist at Prudential Monetary in Newark, New Jersey.

Consequently, Krosby stated, buyers will likely be trying particularly for sturdy gross sales, not simply earnings, because the earnings season progresses.

Thus far, 61.9 p.c of S&P 500 firms have reported income above analyst expectations, beneath the 73 p.c common over the previous 4 quarters, in accordance with I/B/E/S knowledge from Refinitiv.

“What we have to see to get buyers again into the market is stronger income development,” she stated.

The Dow Jones Industrial Common rose 64.89 factors, or 0.26 p.c, to 25,444.34, the S&P 500 misplaced 1 level, or 0.04 p.c, to 2,767.78 and the Nasdaq Composite dropped 36.11 factors, or 0.48 p.c, to 7,449.03.

For the week, the S&P gained 0.02 p.c, the Dow rose 0.four p.c and the Nasdaq fell 0.6 p.c.

Shares of PayPal Holdings Inc climbed 9.four p.c, their highest one-day share acquire in two years, after the funds firm beat quarterly revenue estimates.

Declining points outnumbered advancing ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 2.25-to-1 ratio favoured decliners.

The S&P 500 posted eight new 52-week highs and 38 new lows; the Nasdaq Composite recorded 12 new highs and 214 new lows.

Quantity on U.S. exchanges was 7.59 billion shares, in comparison with the 7.Eight billion common during the last 20 buying and selling days.

(Reporting by April Joyner; Extra reporting by Medha Singh in Bengaluru; Modifying by Anil D’Silva and Shounak Dasgupta)

This story has not been edited by Firstpost workers and is generated by auto-feed.



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