News Column

Coutts-US close: Dow dives as geopolitical tensions heat up

June 25, 2014

ENP Newswire - 25 June 2014

Release date- 24062014 - US close: Dow dives as geopolitical tensions heat up.

Stocks hit by geopolitical concerns - Consumer confidence beats expectations - House prices jump year-on-year US stocks sank on Tuesday, with the Dow Jones tumbling more than 100 points - the biggest single session drop in more than a month, hit by geopolitical tensions, which prompted a sell-off in the energy sector. The Dow Jones closed 119.13 points lower at 16,818.13, the Nasdaq slid 18.32 to 4,350.36 and the S&P 500 dipped 12.63 to end the session at 1,949.98.

The declines came late in the session on the back of reports that the violence in Iraq had worsened, which offset fairly upbeat confidence and housing data.

It was being reported that more than 50 people have been killed in Iraq after Syrian forces attacked the western region.

That came as US Secretary of State John Kerry today urged Iraq's Kurdish region to stand with Baghdad in the battle against Sunni militants, which have overtaken cities across Iraq.

He arrived in Kurdistan today to talk to leaders as Iraqi security forces fought Sunni armed factions for control of the country's biggest oil refinery 200km north of Baghdad. Meanwhile, Russian President Valdimir Putin has signalled his willingness to resolve the unrest in neighbouring Ukraine by withdrawing a previous threat of military force. Putin called on Russia's parliament to revoke the right of military intervention in Ukraine, which it had granted him in March to defend the predominantly Russian-speaking eastern regions of its neighbour.

Data comes in above expectations In more positive news, the Conference Board's US consumer confidence index increased to 85.2 this month from a downwardly revised 82.2 last month, which Barclays Research noted was above both its forecast of 84.0 and the consensus of 83.5.

It said: 'The improvement was broad based as both the present situation (85.1, previous: 80.3) and economic outlook (85.2, previous: 83.5) indices moved higher on the month.

The labor market differential, which measures the percentage of consumers who think jobs are plentiful minus the share who think they are hard to get, rose to -17.1 (previous: -18.0).

This is the strongest level since 2008 and mirrors the steady improvement in the unemployment rate during that time.

'While the expectations index has been volatile in recent years, the present situation index has been steadily trending higher over that time, mirroring improvements in housing and labor markets.

We expect this pattern to continue over the medium term and look for consumer confidence to remain on a broadly upward trend as a result.' Meanwhile, house prices were unchanged during April when compared to the prior month, according to the FHFA's monthly house price index (HPI), following an increase of 0.7% in the month before.

The consensus estimate had been for a rise of 0.5%. However, in comparison with the same month of a year ago, house prices advanced by 5.9%, to stand at 6.9% below its April 2007 peak.

Groupon gains, Walgreen slides Groupon managed to register a gain, extending the previous day's gains which came after one analyst revealed that the company was making efforts to transform itself into a place for e-commerce consumers and that it had already experienced a huge jump in its customer numbers.

Walgreen declined after reporting third quarter profit that fell short of analysts' forecasts.

Cruise line operator Carnival dropped after the 4.4% increase in second quarter revenues to $3.48bn missed expectations by $0.12bn.

Elizabeth Arden dropped after announcing a restructuring plan.

Micron Technology advanced after reporting third quarter profit and sales that beat analysts' estimates. S&P 500 - Risers Vertex Pharmaceuticals Inc.

(VRTX) $93.53 +40.41% Micron Technology Inc.

(MU) $32.50 +3.97% Weyerhaeuser Co.

(WY) $32.17 +3.01% Best Buy Co.


(BBY) $29.06 +1.72% Wisconsin Energy Corp.

(WEC) $46.04 +1.70% Mylan Inc.

(MYL) $51.58 +1.58% Mohawk Inds Inc.

(MHK) $135.47 +1.48% Lennar Corp.

Class A (LEN) $41.05 +1.36% Integrys Energy Group Inc.

(TEG) $69.27 +1.35% Forest Laboratories Inc.

(FRX) $100.04 +1.31% S&P 500 - Fallers Pioneer Natural Resources Co.

(PXD) $221.65 -4.78% Nabors Industries Ltd.

(NBR) $26.80 -4.29% Cliffs Natural Resources Inc.

(CLF) $14.20 -4.25% Intercontinental Exchange Inc (ICE) $190.18 -4.04% Alexion Pharmaceuticals Inc.

(ALXN) $158.79 -4.03% Eog Resources Inc.

(EOG) $113.02 -3.74% Cabot Oil & Gas Corp.

(COG) $33.81 -3.57% Occidental Petroleum Corp.

(OXY) $101.45 -3.56% Carmax Inc.

(KMX) $50.07 -3.54% Helmerich & Payne Inc.

(HP) $111.74 -3.42% Dow Jones I.A - Risers Intel Corp.

(INTC) $30.50 +0.89% Unitedhealth Group Inc.

(UNH) $81.74 +0.31% Coca-Cola Co.

(KO) $41.85 +0.29% Wal-Mart Stores Inc.

(WMT) $75.97 +0.24% Dow Jones I.A - Fallers Exxon Mobil Corp.

(XOM) $102.73 -1.58% JP Morgan Chase & Co.

(JPM) $57.42 -1.32% Boeing Co.

(BA) $129.15 -1.30% United Technologies Corp.

(UTX) $115.68 -1.24% Goldman Sachs Group Inc.

(GS) $168.23 -1.18% American Express Co.

(AXP) $94.43 -1.13% Merck & Co.


(MRK) $57.92 -0.99% E.I.

du Pont de Nemours and Co.

(DD) $67.34 -0.94% Chevron Corp.

(CVX) $131.77 -0.91% Verizon Communications Inc.

(VZ) $49.28 -0.90% Nasdaq 100 - Risers Vertex Pharmaceuticals Inc.

(VRTX) $93.53 +40.41% Micron Technology Inc.

(MU) $32.50 +3.97% Baidu Inc.

(BIDU) $181.19 +2.06% Mylan Inc.

(MYL) $51.58 +1.58% Intuit Inc.

(INTU) $80.55 +1.10% Costco Wholesale Corp.

(COST) $116.31 +0.95% Starbucks Corp.

(SBUX) $77.43 +0.91% Intel Corp.

(INTC) $30.50 +0.89% Symantec Corp.

(SYMC) $22.39 +0.86% TripAdvisor Inc.

(TRIP) $104.68 +0.78% Nasdaq 100 - Fallers Alexion Pharmaceuticals Inc.

(ALXN) $158.79 -4.03% Broadcom Corp.

(BRCM) $36.68 -3.19% Monster Beverage Corp (MNST) $71.22 -2.77% Nxp Semiconductors Nv (NXPI) $64.45 -2.44% Vimpelcom Ltd Ads (VIP) $8.48 -2.30% Expedia Inc.

(EXPE) $76.26 -2.02% Tesla Motors Inc (TSLA) $232.50 -1.99% Amgen Inc.

(AMGN) $118.79 -1.80% Ross Stores Inc.

(ROST) $66.76 -1.79% Vodafone Group Plc ADS (VOD) $32.00 -1.60% NR

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Source: ENP Newswire

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