U.S. equities plunge on interest rate concerns, mixed earnings
U.S. equities plunge on interest rate concerns, mixed earnings
03 February, 2018, 14:54
The Dow was down 665.75 points at the closing bell, with the 30-stock index falling below 26,000 to its lowest point since January 16.
The main trigger was growing concern about rising interest rates and inflation, and their impact on stocks going forward, as the yield on the 10-year Treasury note reached its highest peak in four years, analysts said. The point decline for the Dow marked its worst since December of 2008, when it tumbled 680 points. On a percentage basis, the weekly decline, 4.1%, would be the worst for the blue-chip gauge since the 6.2% weekly decline in early January of 2016.
But investors sold off Friday on fears that a stronger-than-expected jobs report would spur the Federal Reserve to raise interest rates more than expected.
USA hiring picked up in January and wages rose at the fastest annual pace since the recession ended, as the economy's steady move toward full employment extended into 2018.
CBS News business analyst Jill Schlesinger said there are two factors behind the plunge: disappointing corporate earnings and fear that economic growth might lead to higher interest rates.
Of the S&P 500 companies that have reported as of Friday morning, 78 percent have beaten bottom-line expectations, while 80 percent have surpassed sales estimates, according to Thomson Reuters. The Nasdaq pulled back 5.4 percent the week of February 5.
The main USA stock index ended the day at 25,520, down 665 points from Thursday's close. The yields on 30-year bonds rose to 3% for the first time since May.
Among the stocks in the Dow, Apple fell 4.3 percent Friday, Exxon Mobil lost 5.1 percent, Chevron was down almost 6 percent and Goldman Sachs dropped 4.5 percent. Chevron also undershot expectations and fell 2.17%.
Amazon.com was a bright spot, up 2.9 percent as Wall Street analysts quickly upped their price targets following the online retailer's impressive earnings report. At 1 pm yesterday UPS made a similar forecast, and took the United States stock market down with it.
The Nasdaq is up 337.56 points, or 4.9 percent.
The FTSE 100 index of leading British shares gave up 0.2 percent. Benchmark U.S. crude slid 41 cents to $65.39 a barrel on the New York Mercantile Exchange.
Traders were still reacting to the news, but shortly after the announcement spread betting quotes were pointing to the Dow Jones average opening at around 25,956, down 231 points, while the S&P 500, which closed at 2,822 last night, was trading at around 2,801. Brent crude, used to price worldwide oils, fell 91 cents, or 1.3 percent, to $68.74 per barrel in London.
This equated to an operating income of $8.7bn, up 10% from the previous quarter, driven by increases across Microsoft's portfolio. Non-Pro revenue declined by 5% (5% CC), and Windows commercial products and cloud services declined by 4% (5% CC).
The sales number is heavily down from 14 million copies sold during its launch of Star Wars: Battlefront in 2015. So it is a big possibility that we will have to wait a little bit more before we can get more information.
Michael Burgess, an OB-GYN, and several other doctors and servicemen all had a hand in rescue efforts at the crash site. Bruce Westerman of Hot Springs offered an update on Facebook , telling people: "I am on the train in Virginia.
The White House has said Trump will consult with his national security and legal teams before deciding whether to release it. Rosenstein's meeting with the President came as Rosenstein prepared to testify before the House Judiciary Committee.
Isaiah Thomas noted that players were not happy that he did not stay on the sidelines to support the rest of his team. Van Gundy was asked if Johnson will continue to play a prominent role once Griffin is integrated into the offense.
Meanwhile, President Obama's first SOTU logged just over 48 million viewers in 2010 while almost 52M watched George W. However, roughly 4 in 10 people surveyed, or 38 percent , said Trump mostly focused on the wrong things.
But, if NY and federal officials reached an agreement by September, the money could be restored, News 8 was told. Federal leaders said Thursday New York would lose out on $14 million in federal funds over the signs dispute.
Talking about the project, Anushka earlier said, "I always get excited with unique ideas that have human interest stories". Post that, the actress was seen switching her looks - in Indian attire, western wear like dresses too.
Investors and analysts widely expect the central bank will raise short-term interest rates at its next policy meeting in March. At the same time, some 18 states raised minimum wages in January and that likely added to the increase in pay.
A previous pay report, commissioned by the BBC, concluded there was no evidence of systemic gender discrimination. A BBC sport editor said she asked four men doing the same job at the broadcaster for their salary details.
Klopp refutes Van Dijk weight-loss claims
He can bring a lot of things in already and that's good. 'It's like expected to be honest, completely normal. We have the best nutrition department, no-one has come to me and said that.
'It is a cesspool of funky flu'
Lockler went on to say that if you do get sick, "wash your stinkin' hands so you don't get all your babies sick!" ER Dr. Lockler also showed her viewers how to sneeze properly and minimize the risk of spreading the flu.
Thursday Night Football is heading to Fox for next 5 years
This fits into what Fox wants to do heading forward with its over-the-air network-a push to live sports and news-oriented fare. The last two seasons, CBS and NBC paired up for the rights to air 10 Thursday night games (simulcast on the NFL Network).
Trump Wants Huge Cut to Clean Energy Research
The large bulk of its funding is deployed on research, most frequently at the National Renewable Energy Laboratory in Golden, Co. The renewable and efficiency programs represent about 7 percent of the Energy Department's overall budget.
2nd 'Person of Interest' Named in Vegas Shooting Investigation
Haig is speaking exclusively to CBS News as we've just learned he was initially considered a person of interest in the case. County attorneys did not respond immediately to questions about whether Fedenberg could appeal to the Nevada Supreme Court.
Quiksilver boss Pierre Agnes missing at sea
Mr Agnes, 54, was declared missing by port authorities when he reportedly set sail on Tuesday morning but did not return. The area is known for its large and sometimes unsafe waves, which have made it such a surfing hotspot.