• Follow us

Economy

Wall Street falls as Fed signals smaller rate cut

NEW YORK (Reuters) - Wall Street’s main indexes fell on Friday following a report that the Federal Reserve plans to cut interest rates by only a quarter-percentage point at the end of the month.

The benchmark S&P 500 erased earlier marginal gains after a Wall Street Journal report on the Fed’s plans. According to the report, while the U.S. central bank is not prepared to make a bigger 50-basis-point cut, it may make further rate cuts in the future given concerns about a decline in global economic growth and uncertainty about trade.

On Thursday, stocks had risen as comments from New York Fed President John Williams increased hopes of a bigger rate cut. Later that day, however, a New York Fed representative said Williams’ comments were not intended to telegraph any hints about upcoming Fed policy actions.

“It appears that the Fed has communicated its message,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. “They’re basically trying to clarify their policy.”

Futures market odds of a 50-basis-point cut at the Fed’s July meeting soared to 71% late Thursday immediately after Williams’ speech but fell to 22.5% on Friday, according to CME Group’s Fedwatch tool.

The expiration of options on Friday likely amplified the market reaction to the report, said Dennis Dick, head of markets structure at Bright Trading LLC in Las Vegas.

“It’s been one of those days where you get a lot of chop,” he said. “This is often on the third Friday of the month. The traders are expecting this.”

The Dow Jones Industrial Average .DJI fell 68.77 points, or 0.25%, to 27,154.2, the S&P 500 .SPX lost 18.5 points, or 0.62%, to 2,976.61 and the Nasdaq Composite .IXIC dropped 60.75 points, or 0.74%, to 8,146.49.

For the week, the Dow lost 0.64%, the S&P fell 1.23% and the Nasdaq shed 1.19%.

Earlier on Friday, U.S. stocks had edged higher as strong results from Microsoft Corp (MSFT.O) momentarily buoyed technology stocks. Microsoft shares ended marginally higher, up 0.1%, but the S&P 500 technology index .SPLRCT fell 0.55%.

Second-quarter profits at S&P 500 companies are now estimated to rise 1%, according to Refinitiv IBES data, in a reversal from earlier expectations of a small drop.

Boeing Co (BA.N) shares gained 4.5%, despite the planemaker’s disclosure that it would take a $4.9 billion after-tax hit from the grounding of its 737 MAX, indicating that investors had expected more severe repercussions.

Kansas City Southern (KSU.N) shares rose 4.6% after the railroad operator posted a better-than-expected quarterly profit. Its shares helped the Dow Jones Transport index .DJT gain 0.6%.

Shares of American Express Co (AXP.N) slipped 2.8% after the credit card issuer warned of higher operating costs this year as it spends heavily on rewards programs to attract customers.

Traders walk on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2019. REUTERS/Brendan McDermid

Declining issues outnumbered advancing ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

The S&P 500 posted 45 new 52-week highs and five new lows; the Nasdaq Composite recorded 75 new highs and 84 new lows.

Volume on U.S. exchanges was 6.25 billion shares, compared to the 6.59 billion average for the full session over the last 20 trading days.

Reporting by Evan Sully and April Joyner; Additional reporting by Chuck Mikolajczak in New York and Medha Singh and Uday Sampath in Bengaluru; Editing by Sonya Hepinstall and Tom Brown

Our Standards:The Thomson Reuters Trust Principles.Read More



Leave A Comment

More News

BBC News - Business

BBC World News business headlines 2019-08-06 13:02:25The latest international business headlines from BBC World News.

1,100 jobs at risk after Karen Millen online 2019-08-06 11:06:27Fashion firm Boohoo buys the online business of High Street brands Karen Millen and Coast for £18.2m.

Engineered in Africa: 'We knew the talent was 2019-08-06 08:28:09Christina Sass of software engineer recruitment firm Andela says that talent can be found anywhere.

Hyundai releases car with solar panel roof 2019-08-06 07:36:04The solar power system is available on the hybrid versions of the Korean car maker's Sonata vehicle.

Katharine Hamnett: Fashion tax is 'stupid' 2019-08-06 06:54:10Designer Katharine Hamnett says legislation is needed to force fashion brands to stop fast fashion.

Barneys New York store chain files for bankruptcy 2019-08-06 06:32:20The US luxury department store chain also puts itself up for sale after being hit by a steep rent rise.

McDonald's paper straws 'fully recyclable' makers say 2019-08-06 05:45:13The manufacturer of the straws says the UK's recycling infrastructure needs more investment.

Tencent set to buy 10% stake in Universal 2019-08-06 04:28:18UMG's parent company Vivendi is in talks with the Chinese tech group over the deal.

Yuan fall: Why is China's currency getting weaker? 2019-08-06 00:19:56A drop in the value of the yuan poses far-reaching consequences for markets and the US-China trade war.

US officially labels China a 'currency manipulator' 2019-08-06 00:02:17Washington accuses Beijing of devaluing the yuan, a statement likely to intensify trade tensions.

Capita seeks to reverse 'reputational damage' after death 2019-08-05 20:14:41Assessor Capita is seeking to overturn a ruling and £10,000 damages award after a claimant died.

Facebook urged to shut groups seeking fake Amazon 2019-08-05 19:08:34Which? claimed to have uncovered several active groups that recruited people to write fake testimonies.

Reuters: Business News

Wall St. slips after three days of gains; New! 2019-08-20 12:57:35Wall Street's main indexes edged lower on Tuesday after three sessions of gains, as lower Treasury yields weighed on financial stocks, offsetting a b

U.S. regulators hand Wall Street a major win New! 2019-08-20 12:49:53U.S. banking regulators on Tuesday approved changes easing a rule introduced after the 2007-2009 financial crisis that bans banks from trading on thei

Home Depot beats quarterly profit estimates, warns of New! 2019-08-20 12:49:00Home Depot Inc beat quarterly profit estimates on Tuesday as it sold more big-ticket items to high-spending builders and handymen, while flagging the

Oil steadies as hopes of easing trade tensions New! 2019-08-20 12:39:28Oil prices steadied on Tuesday on optimism U.S.-China trade tensions will ease and hopes major economies will take stimulus measures to ward off a pos

Facebook users to see, control personal data taken New! 2019-08-20 12:03:32Facebook Inc said on Tuesday it was tweaking its policies to allow users to see and control the data that other websites and apps share with the soci

Plant-based meat alternatives crowd U.S. grocery stores New! 2019-08-20 11:58:46Plant-based meat alternatives have seen booming interest from consumers, prompting a growing number of companies to enter the space in hopes of carvin

Goldman CEO memo calls Apple Card 'a beginning' New! 2019-08-20 11:52:57Goldman Sachs Group Inc officially became a credit-card lender on Tuesday by rolling out its first product with Apple Inc , but the bank has aspirati

Ex-Republican senator: Facebook has 'significant work' to address New! 2019-08-20 11:36:03A year-long review by a former Republican U.S. senator concludes that Facebook Inc has "significant work to be done to satisfy" concerns on the poli

Exclusive: Cigna seeks sale of group benefits insurance New! 2019-08-20 11:31:23U.S. health insurer Cigna Corp is exploring a sale of its group benefits insurance business, which could be valued at as much as $6 billion, four peop

Safe-havens rise as recession concerns boost hopes for New! 2019-08-20 11:29:01Traditional safe-havens including the Japanese yen and U.S. Treasuries were sought out on Tuesday even as there were signs that more economic stimulus

Kohl's cuts 2019 margin forecast on tariffs, first half New! 2019-08-20 11:19:26Kohl's Corp forecast a steeper decline in full-year profit margin despite better-than-expected quarterly earnings, because of the cost of more aggre

Elanco to become No.2 in animal health with New! 2019-08-20 11:06:44Elanco Animal Health agreed to buy Bayer's veterinary drugs unit on Tuesday in a cash and stock deal valued at $7.6 billion, creating the second la

Business News - UPI.com

U.S. Space Command to start Aug. 29, officials New! 2019-08-20 13:49:36 The U.S. Space Command will begin operations on Aug. 29, Vice President Mike Pence and Joint Chiefs of Staff Chairman Gen. Joseph Dunford said Tuesda

Report: China's military could overwhelm U.S. forces in New! 2019-08-20 13:25:49 China has the military strength to overwhelm the United States in the Indo-Pacific region, a report by an Australian research group said.

Bahrain joins U.S.-led coalition safeguarding Persian Gulf shipping New! 2019-08-20 12:42:06 The Kingdom of Bahrain will join the U.S.-led military coalition to protect Persian Gulf shipping lanes, U.S. Central Command announced.

Lockheed Martin wins two contracts for F-35 upgrades New! 2019-08-20 11:49:41 Lockheed Martin won contracts valued at $32.1 million and $12 million for modifications to F-35 Lightning II Joint Strike Fighter planes, the Pentag

U.S. military tests ground-based cruise missile 2019-08-19 13:45:19 A ground-launched cruise missile was successfully fired in a test Sunday, the Pentagon said. The test is the first since the U.S. pulled out of the I

Raytheon nets $47.9M contract for laser-guided Maverick missiles 2019-08-19 13:38:56 The Defense Department awarded a $47.9 million contract to Raytheon Missile Systems to purchase AGM-65E2/L laser-guided Maverick missiles.

Air Force certifies first field unit for 3D 2019-08-19 12:53:51 The U.S. Air Force on Monday announced it has certified the 60th Maintenance Squadron with an industrial-sized 3D printer and its first project, the

Raytheon wins $199.5M Navy contract for Close-In Weapon 2019-08-19 11:53:28 Raytheon Missile Systems received a $199.5 million contract to upgrade the Navy's MK 15 Close-In Weapon System, the Defense Department announced.

GAO report: Pentagon spent nearly $1B on improper 2019-08-16 15:02:14 The Department of Defense incorrectly distributed nearly a billion dollars in travel fees over a three- year period, a General Accounting Office repo

FLIR Surveillance awarded $12.6M for sensors aboard littoral 2019-08-16 13:42:22 FLIR Surveillance Inc. received a $12.6 million contract for supplies, repairs and upgrades to sensor systems aboard U.S. Navy littoral combat ships.

Lockheed nets $80M contract for Aegis system upgrades 2019-08-16 13:37:58 Lockheed Martin received an $80 million contract from the U.S. Navy for electronic equipment upgrades to the Aegis missile system, the Pentagon annou

38-year-old submarine USS Ohio returns to service after 2019-08-16 12:31:25 The USS Ohio, the Navy's oldest guided missile submarine, completed 27 months of refitting and is ready for duty, the Naval Sea Systems Command anno

Christian Science Monitor |

Why wealth and patience appear to go hand 2019-07-30 00:05:20Patience is often thought of in terms of social interactions. But the ability to bide one’s time also plays into national economics.

Trump has nothing to fear but fear itself. 2019-07-30 00:05:20Can a new budget deal, a rate cut, and no escalation in the China trade war keep recession at bay?

Why cattle and ecotourism combine on one Nebraska 2019-07-30 00:05:20Between tariffs and low grain prices, U.S. farmers are facing their toughest conditions in decades. Many are finding entrepreneurial ways to survive.&

Maine networks support young farmers, before they drop 2019-07-30 00:05:20Isolation and financial hardship take a toll on new farmers. In Maine, a program connects still-green farmers with mentors, know-how, and ea

Trade war slows Chinese economy to lowest rates 2019-07-30 00:05:20As economic growth falls to its lowest levels in more than a quarter-century, China is facing pressure to resolve an ongoing trade war with the U.S.&n

Around the world, investors value social, environmental impacts 2019-07-30 00:05:20Investors may value more than just financial profit. Markets for socially and environmentally mindful companies are opening across the world.

Farmers grow the food. But who’s helping new 2019-07-30 00:05:20Access to land is a major barrier to entering farming. One solution is land-link programs that pair landowners with those starting out.

Rural America faces housing shortage. How one town 2019-07-30 00:05:20Rent assistance is drying up for many rural housing projects. Construction costs keep rising. Yet many rural communities need to attract more workers.

Workers look for clear line in murky border 2019-07-30 00:05:20Ethical issues are rarely easy for companies to resolve. Wayfair, targeted for alleged complicity with a humanitarian crisis, is the latest

Why this company wants your old underwear 2019-07-30 00:05:20Will recycling textiles save the planet? Buying less and wearing your clothes longer might accomplish more.

Farmers caught between a flood and a trade-war 2019-07-30 00:05:20A $19.1 billion disaster aid package won't include much help for Midwestern farmers who can’t plant. Meanwhile a trade war puts farm

Why tariff threat is unsettling – even after 2019-07-30 00:05:20The threat of Mexican tariffs is off for now. But it could return – and the weaponization of tariffs may not be in the long-term interest of the

Home Page

Small-cap index tanks 30% in a year. Time New! 2019-08-20 13:31:07The S&P BSE Sensex and the Nifty 50 have slipped around 5 per cent and 6 per cent, respectively, since then

Win for Wall Street as Trump revamps Volcker New! 2019-08-20 12:49:10Regulatory changes provide lenders clearer picture of which trades are prohibited, but critics say they could again endanger the financial system.

Over 20 years after Asia debt crisis, McKinsey New! 2019-08-20 12:46:23McKinsey examined the balance sheets of more than 23,000 companies across eleven Asia-Pacific countries, and found firms in most of Asia face 'signif

Developments in J-K are India's internal matter: US New! 2019-08-20 12:30:20Singh raised the issue of cross-border terrorism and appreciated the US support for India's effort to maintain peace and stability in the region

State-owned banks to give home, auto loans online New! 2019-08-20 12:27:01Currently, the portal gives in-principle approval for loans of up to Rs 1 crore to micro, small and medium enterprises in just 59 minutes or less than

Pakistan says will approach International Court of Justice New! 2019-08-20 10:33:55Prime Minister Imran Khan told a rare joint sitting of Pakistan's Parliament on August 6 that he will raise the Kashmir issue at every forum

Shell exits city gas business in India, sells New! 2019-08-20 09:45:33When MGL was listed in July 2016, Shell and GAIL held 32.5 per cent stake each in the company

INX media case: P Chidambaram moves SC against New! 2019-08-20 09:24:14A team of lawyers led by senior advocate and Chidambaram's party colleague Kapil Sibal was told by Registrar (Judicial) to mention the petition on We

Food platforms to tweak menu to 'detox' customers New! 2019-08-20 08:27:15Food aggregators have agreed to redesign their schemes to rein in deep discounts and asserted that discount is a privilege not a right

Delhi among fastest growing mkt globally for luxury New! 2019-08-20 07:39:13Berlin with a growth of 12.7 per cent and Frankfurt with a rise of 12 per cent in capital value over the past one year top the table

Huawei founder asks employees to brace for company's New! 2019-08-20 07:33:17In a memo sent to employees on Monday loaded with military metaphors, 74-year-old Ren asked staff to work aggressively towards sales targets as the fi

Sterling and Wilson Solar lists at 9% discount New! 2019-08-20 07:08:16SWSL is promoted by the Shapoorji Pallonji Group and is the demerged Solar EPC Division of Sterling and Wilson (SWPL).

Business

Tencent and other Chinese tech firms are reporting 2019-08-16 20:00:00But the trade war is making them more inward-looking

FedEx’s visionary founder is a disrupter at risk 2019-08-16 20:00:00FredEx is looking long in the tooth

India Inc is growing disenchanted with Narendra Modi 2019-08-16 20:00:00In his second term, India’s prime minister is showing his statist side

Saudi Aramco debuts in an earnings call 2019-08-16 20:00:00Facing an uncertain future, the oil giant is trying new moves

WeWork unveils its IPO prospectus 2019-08-14 20:00:00Investors will need a lot of nerve to back the loss-making office-rental company

Viacom and CBS agree to reunite 2019-08-14 20:00:00After years of bitter wrangling, Viacom and CBS merge to counter the media industry’s giants

Buy-out firms embrace Germany—and vice versa 2019-08-10 00:00:00Private-equity companies like the country’s stable politics, skilled workers and steady growth

Investors flee the Permian 2019-08-09 20:00:00Earnings of energy producers reliant on shale take a tumble

The elderly are the next big growth market 2019-08-09 20:00:00App-makers are trying to captivate granny

Uber lost over $5bn in the second quarter 2019-08-08 20:00:00The ride-sharing giant stumbles—again—on its long journey to making money

American steel tariffs cut both ways for domestic 2019-08-08 10:45:18President Donald Trump’s levies helped in the short run but could hurt in the longer term

The Exxon Valdez of cyberspace 2019-08-08 10:45:18If data are the new oil, data breaches should be treated like oil spills


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.