US blue-chip shares fell on Thursday as fierce fighting and a spate of kidnappings in Iraq made investors cautious ahead of a three-day Easter weekend, while bond prices slipped after signs of a strengthening job market stoked fears of higher interest rates.
The worsening security situation in Iraq supported bullish sentiment in energy markets, sending crude oil up nearly US$1 a barrel, and limited declines in gold, seen as a safe-haven investment.
The dollar rose broadly, helped by evidence of a firming US labor market, while gold eased from a 15-year high reached a week ago.
Disappointment over Wal-Mart Stores Inc's profit prospects forced the Dow lower, while technology stocks held on to slight gains driven by a jump in earnings from Yahoo Inc and a bullish revenue forecast by Dell Inc.
Wal-Mart was the biggest drag on the blue-chip Dow average as the world's biggest retailer dashed hopes it would raise its profit forecast after some of its peers raised theirs. Its shares fell US$1.29, or 2.2 percent, to US$56.69.
The Dow Jones industrial average ended down 38.12 points, or 0.36 percent, at 10,442.03. The Standard & Poor's 500 Index declined 1.20 points, or 0.11 percent, to 1,139.33, while the technology-laden NASDAQ Composite Index rose 2.64 points, or 0.13 percent, to 2,052.88.
US bond prices fell after a surprising decline in the number of Americans applying for first-time jobless benefits shook an already battered market. With weekly claims now at the lowest level in more than three years, traders worried that the Federal Reserve might start hiking interest rates sooner than previously thought.
"The lower-than-expected number of new jobless claims shows that the labor market is continuing to improve," said Gary Thayer, chief economist at A.G. Edwards and Sons.
The benchmark 10-year note dipped 7/32 to a price of 98-15/32 for a yield of 4.19 percent, up from 4.16 percent late on Wednesday. The 30-year bond was off 10/32 at 105-3/32 to yield 5.03 percent, from 5.01 percent.
The dollar rose after the government said first-time US unemployment claims fell to 328,000 in the week to April 3, clearly undercutting forecasts of a smaller drop to 340,000.
"It shows continued improvement in the US labor force ... and should bode well for the whole economic picture," said Tim Mazanec, senior currency strategist with Investors Bank & Trust in Boston.
In late New York trade, the euro was at US$1.2085, a loss of 0.7 percent from US$1.2173 on Wednesday, according to Reuters data. The dollar rose more than 1 percent above 106.40 yen before edging back to 106.25, up from 105.25 yen late Wednesday in New York.
NYMEX crude oil futures jumped nearly US$1 a barrel, driven in part by bullish sentiment as insurgents in Iraq battled with US military forces.
Prices were bolstered by another sharp rise in gasoline futures, aided by an explosion and fire at a refinery in New Mexico.
Crude for May delivery rose 99 cents to settle at US$37.14 a barrel, while May gasoline jumped 3.83 cents to US$1.1508 a gallon.
COMEX gold fell on pre-holiday profit taking triggered by the dollar's gains. But gold held to a small range as the violence in Iraq underpinned the metal.
Gold for June delivery fell US$3 to settle at US$420.70 an ounce. It has been consolidating since reaching a 15-year high at US$433 a week ago.
European stocks ended on an upbeat note on hopes for healthy profit growth among energy and technology companies.
The FTSE Eurotop 300 index ended up 0.5 percent at 1,014.8 points, 4 points above last week's close. The DJ Euro Stoxx 50 index rose 0.3 percent to 2,858.9.
In Japan, the Nikkei average managed a small gain to end at another 32-month high.
The Nikkei closed up 0.61 percent at 12,092.59, its highest close since Aug. 8, 2001. After staying above 12,000 for a third day, the Nikkei was now expected to remain well supported above this level. The broader TOPIX index was up 0.42 percent at 1,209.89.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia
RSS