U.S. stocks fluctuate after positive opening . . . . . . . . . . . . Wall Street started Monday morning in an upbeat mode, but soon after the opening benchmark indices eased some of the gains. It seemed markets have a different tone than last week when investors were rattled by a combination of geopolitical turmoil and worries about when the Federal Reserve will begin hiking interest rates. But those fears seem to have abated somewhat as investors look for opportunities to buy stocks at a slight discount. Utilities shares were the biggest weight on U.S. shares. -The Dow Jones Industrial Average fell 0.22% or 36.28 points to 16456.71 -The S&P 500 Index gained 0.02% or 0.32 to 1925.36 The S&P 500 tumbled 2.7 percent last week, the most since June 2012, as companies around the globe including Exxon Mobil Corp. posted disappointing results, Argentina defaulted and Banco Espirito Santo was ordered to raise capital. The Chicago Board Options Exchange Volatility Index, which usually moves in the opposite direction to the S&P 500, jumped 34 percent to 17.03 last week. -The NASDAQ Composite Index fell 0.12% or 5.67 points to 4346.89 About $1.2 trillion was wiped from the value of global equities last week amid concern that the crisis at Espirito Santo and the default by Argentina would constrict credit markets as the Federal Reserve debates the timeline for interest-rate increases. In Individual shares, handbag maker Michael Kors reported impressive jumps in revenue and profit. But the stock fell despite the results. Shares of Tekmira Pharmaceuticals surged on reports that the Food and Drug administration would allow the company to resume clinical trials of its treatment of the Ebola virus. Warren Buffett`s Berkshire Hathaway said Friday that profits grew by nearly $2 billion in the second quarter. Shares are up about 1% Monday. HSBC (HSBC) reported results showing a decline in profit in the first half of 2014 but shares in the company still managed an increase. Meanwhile, Portugal`s central bank announced it is using €4.9 billion ($6.6 billion) to rescue Banco Espirito Santo. The move involves splitting the troubled bank into a good and bad bank, and aims to protect taxpayers and bank customers. Shareholders and some bond holders will lose out. Shares in BES were suspended Monday but have slumped 87% so far this year. Portugal`s benchmark PSI 20 index edged up by 1.8% Monday, though the index has declined by 11% since the start of the year. European markets were mixed. #egyptyard
Posted on: Mon, 04 Aug 2014 15:54:26 +0000
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