What it means that stocks are in a 'correction'

10 Febrero, 2018, 01:34 | Author: Arnold Perez
  • What it means that stocks are in a 'correction'

Investors anxious that rising wages will hurt corporate profits and could signal an increase in inflation that could prompt the Federal Reserve to raise interest rates at a faster pace, putting a brake on the economy.

The global sell-off began last week after a solid USA jobs report fuelled expectations that the Federal Reserve would need to raise interest rates faster than expected, because of the strength of the economy.

The wild ride on Wall Street continued Thursday with the Dow Jones Industrial Average plunging more than 1,000 points for the second time this week.

The S&P 500 shed 58 points, or 2.2 per cent, to 2,622 as of 3:10 p.m. It hasn't been that low since mid-November. The Nasdaq composite added 97.33 points, or 1.4 percent, to 6,874.49.

The losses were broad.

Stocks sank again Friday, with the Dow Jones industrials briefly falling 500 points, as the market heads for its worst week since the 2008 financial crisis.

Hanesbrands, which makes underwear, T-shirts and socks, reported a smaller profit than investors expected, and its forecast for the current year didn't live up to analysts' estimates either. The travel website's 2018 outlook also disappointed investors.

The S&P 500 gave up 44 points, or 1.7 percent, to 2,637.

More news: Trump firma acuerdo presupuestario de 400 mil millones de dólares
More news: Apple is investigating why one AirPod caught on fire in Florida
More news: Rescuers continue to search for missing people in Taiwan quake

Other major stock indexes also dropped Thursday. GrubHub jumped $21.44, or 30.7 percent, to $91.34, while Yum Brands dipped $1.22, or 1.5 percent, to $78.91. Whether or not Fed policymakers come right out and say it when they next meet in March, and New York Fed President William Dudley's comments on Thursday suggest they probably will, the balance of economic risks has now clearly shifted to the upside, meaning the risk is that growth will come in too hot. That also sent the pound higher. Average hourly wages grew 2.9 percent from a year ago - the largest increase since 2009. Brent crude, used to price worldwide oils, slid $2.78, or 4.3 percent, to $62.03 in London.

Bond prices wobbled and turned higher.

Investors who are instead looking to take stock and reduce risk, perhaps fearing a more pronounced stock market correction, may want to consider a fund that prioritises capital preservation.

Earlier on Thursday, the 10-year US Treasury note yield rose as high as 2.884 percent, nearing Monday's four-year peak of 2.885 percent, after the Bank of England said interest rates probably needed to rise sooner than previously expected.

Wholesale gasoline remained at $1.77 a gallon.

In Europe, Germany's DAX fell 1.2 percent, while France's CAC 40 lost 1.4 percent.

Shares in French cosmetics group L'Oreal rose 0.3 percent after its fourth-quarter sales beat expectations and comments by its CEO regarding its intentions on Nestle's stake further buoyed the stock.

Recomendado:

  • First 'Venom' teaser trailer shows Tom Hardy as Eddie Brock

    First 'Venom' teaser trailer shows Tom Hardy as Eddie Brock

    Yesterday Sony Pictures released a Venom poster , teasing the character's eyes and the release month of October. Until then, we can only wonder why Sony would make such a baffling choice during an already crowded week.
    Leak: No deal Brexit 'would cost 9% of Scotland's GDP'

    Leak: No deal Brexit 'would cost 9% of Scotland's GDP'

    In provocative comments he added: "We are going to state exactly what we mean by regulatory alignment in the legal text". MPs voted to force the government to reveal the details of the assessment and they have now seen the analysis.
    Accident Compensation Corp Trims Holdings in CVS Health Corp (CVS)

    Accident Compensation Corp Trims Holdings in CVS Health Corp (CVS)

    It turned negative, as 48 investors sold V shares while 617 reduced holdings. 46 funds opened positions while 186 raised stakes. The institutional investor owned 6,487 shares of the pharmacy operator's stock after selling 8,133 shares during the quarter.
  • Riyad Mahrez Finally Ends His Self-Imposed Leicester City Exile

    Riyad Mahrez Finally Ends His Self-Imposed Leicester City Exile

    Algeria international Mahrez , 26, has not played for the club since a January move to Manchester City fell through. All the other managers are the same. " It is important he comes back ".
    Snow piles up in midwest storm, traffic snarled

    Snow piles up in midwest storm, traffic snarled

    A section of Interstate 94 in southwestern MI was blocked after dozens of vehicles crashed amid heavy snowfall. Early Friday , the National Weather Service received reports of 4 inches of snow in northern IL .
    LL Bean nixes legendary lifetime return policy

    LL Bean nixes legendary lifetime return policy

    Bean said it now will let customers return products up to one year after purchase, if they have a receipt or proof of purchase. Bean was considering changes to its return policy for at least the past year as it looked to free up cash to fund expansion.
  • Flu outbreak has killed at least 63 children: CDC officials

    Flu outbreak has killed at least 63 children: CDC officials

    According to CDC experts, antiviral drugs are most effective when taken within the first 48 hours of symptoms being shown. Riding on the back of this, other people have contributed with their own ways of separating a common cold from flu.
    Stocks for Your Case: XPO Logistics, Inc. (XPO), Valero Energy Corporation (VLO)

    Stocks for Your Case: XPO Logistics, Inc. (XPO), Valero Energy Corporation (VLO)

    Manning And Napier Advsr Limited Company holds 0.06% of its portfolio in Valero Energy Corporation (NYSE:VLO) for 95,855 shares. The stock of Valero Energy Corporation (NYSE:VLO) has "Buy" rating given on Wednesday, January 10 by Scotia Capital.
    Trump Targets Iran At Prayer Breakfast, Voices Solidarity With The Persecuted

    Trump Targets Iran At Prayer Breakfast, Voices Solidarity With The Persecuted

    It would take an act of Congress to repeal the measure, but attempts by Republican leaders to do so past year were unsuccessful. Trump noted that God is mentioned four times by the Founding Fathers in the Declaration of Independence.
  • Tonga's flag bearer is shirtless again - and it's freezing at the Olympics

    Tonga's flag bearer is shirtless again - and it's freezing at the Olympics

    The athlete will compete as a cross-country skier in the games, and he perviously said: "I want to still be alive for my race". Taufatofua made his Olympic debut in Rio with a disappointing first-round taekwondo exit, so he set his sights on Pyeongchang .
    Streelman, Hossler share Pebble Beach lead

    Streelman, Hossler share Pebble Beach lead

    Hossler, who challenged for the lead as a 17-year-old on the weekend of the 2012 U.S. Three players, including Matt Kuchar, were tied for third at 6-under.
    Hamlin leads US team into Olympic stadium

    Hamlin leads US team into Olympic stadium

    He eventually won gold in 1994 after his last race and his journey is one of my favorite Olympic moments of all time. Hamlin and other Olympians utilize sports psychologists "when needed to handle high-stress situations", she writes.


Popular

Winter Olympics 2018: USA Men's Hockey Roster, Betting Odds For Pyeongchang
In 2015, he was drafted to the NHL Entry Draft and chosen by the Minnesota Wild in the second round, 50th overall pick. The only thing missing from Canadian figure skater Patrick Chan's resume is an Olympic gold medal.

NKorea Not Interested in Meeting With US at Olympics
They're angry that Kim Jong Un's regime is participating in the Olympics and stealing the spotlight. She is 4 years younger than Kim Jong-Un and is said to be very close to him, BBC reported .

Fifth straight Copa final for Barcelona
Colombian defender Yerry Mina made his Barcelona debut on Thursday by replacing Gerard Pique late in the match. Coutinho was not named in the starting XI as he came off the bench to score his first goal for Barcelona .

YouTube Suspends All Ads on Logan Paul Channels
Paul promises to donate a million dollars from his YouTube fortune to those causes. "I believe it happened for a reason", he said. His channel was removed from Google Preferred , a program connecting advertisers with top-tier content producers on the site.

Watch Justin Timberlake surprise Super Bowl "selfie kid"
The teen snapped a selfie with Justin Timberlake who performed in a halftime show the Super Bowl last weekend. The 13-year-old Selfie Kid named Ryan McKenna appeared on the "The Ellen DeGeneres Show" on Friday.

BC Unemployment rate still the best in Canada
That fuelled an acceleration of the national wage rate to an annualized pace of 3.3 percent that was the fastest since 2015. In Saskatchewan, the unemployment rate fell 1.1 per cent to 5.4 over the revised 6.5 per cent number from December.

Egypt closes schools in North Sinai as army conducts Operation Sinai 2018
It has carried out military operations there that, it says, have killed hundreds of militants and soldiers over the years. Police and troops have been put on "maximum alert" for the duration of the operation, the army said in a statement.

Family Day being moved over a week
Green Leader Andrew Weaver has always backed the move, even introducing a private member's bill previous year to amend the law. But Horgan says the change will be better for businesses and for families who are spread out across the country.

Hand dryers spread germs: University of Leeds Research
A Facebook post going viral is raising fears across the county about a popular kind of hand drying machine. Just wash with water and soap and leave with wet hands.

Fiscal hawk Paul slows United States budget deal, shutdown looms
Louise Slaughter (D-NY), as the House ended the shutdown just after 5:30 am, voting 240-186 to approve a two-year budget deal. Rand Paul , R-Ky., held up the Senate's vote on a bipartisan budget package, but reopened less than three hours later.