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U.S. stocks fluctuated near records, as small-cap shares tumbled to offset gains among phone and utility shares. Commodities fell to a five-year low as oil sank while the dollar advanced.
U.S. Stocks Fall as Small Caps Tumble; Alibaba Rallies
Billionaire Jack Ma, chairman of Alibaba Group Holding Ltd., center, waves while... Read More
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U.S. stocks fell, erasing earlier gains as theRussell 2000 Index of small-cap shares tumbled. Commodities declined to a five-year low as oil sank while the dollar advanced.
The Standard & Poor’s 500 Index fell 0.2 percent at 1:18 p.m. in New York after closing at a record. Alibaba Group Holding Ltd. surged 32 percent on its first day of trading. The Russell 2000 sank 1.3 percent. The Bloomberg Commodity Index retreated 0.8 percent as oil sank. The U.S. Dollar Index rose for a 10th straight week, the longest since at least March 1967, as the yen fell to a six-year low.
Alibaba opened at $92.70 after selling shares at $68 in an initial public offering that raised $21.8 billion, the biggest U.S. IPO ever. U.S. trading may be subject to unexpected swings because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and stocks expire. Trading in S&P 500 stocks was 75 percent above the 30-day average at this time of day. Scotland’s First Minister Alex Salmond resigned after the anti-independence “No” camp garnered 55 percent of the votes.
“Some of the macro headwinds have subsided a little bit,” Jim Kee, president and chief economist of San Antonio-based South Texas Money Management, said by phone. His firm oversees about $2.4 billion. The market “corroborates with the reduced uncertainty, the increase in confidence and frankly appetite for risk,” he said. “Alibaba is a good example that there is lot of capital looking for investment opportunities.”
Traders work on the floor of the the New York Stock Exchange on Sept. 19, 2014.
Alibaba IPO
The S&P 500 climbed for a third day yesterday to close at a record, boosted by optimism that theFederal Reserve will keep interest rates low even as the world’s largest economy shows signs of improving. The equities benchmark is heading for a 1.2 percent advance this week, the sixth in seven.
Data today showed an index of leading indicators climbed 0.2 percent in August after jumping 0.9 percent in July. Economists forecast a gain of 0.4 percent.
Alibaba and shareholders including Yahoo! Inc. (YHOO) sold 320.1 million shares in the Hangzhou, China-based company for $68 each, after offering them at a range of between $66 and $68, according to a statement.
Phone and utility shares rose at least 0.6 percent to pace gains among seven of the 10 main groups in the S&P 500.
Among other stocks moving, Oracle Corp. (ORCL) fell 5 percent after naming two co-chief executive officers as Larry Ellison stepped down. Dresser-Rand Group Inc. rallied 11 percent after people familiar with the matter said Siemens AG is preparing to offer more than $6.5 billion for it. Concur Technologies Inc. jumped 18 percent as SAP SE agreed to buy the company for $7.4 billion to boost its cloud-computing business.
An official empties a ballot box containing Scottish independence referendum votes at...Read More
The operator of the S&P 500 will also rebalance the index in a quarterly move to adjust member weightings. About $25 billion of shares will be traded as investors buy and sell stocks to mimic the changes, according to a Sept. 7 estimate byHoward Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.
U.K. shares rose after the Scotland vote that put the future of the 307-year-old union on a knife edge and risked years of political and financial turmoil.
The pound rose 0.1 percent to 78.73 pence per euro. Yields on U.K. two-year notes added two basis points to 0.89 percent.
Scotland Vote
The FTSE 100 advanced 0.3 percent to its highest close since Sept. 4, when it reached a 14-year high during the day. Royal Bank of Scotland Group Plc advanced 2.5 percent for thebiggest gain in the index. The Stoxx 600 rose for a third day and climbed 1.3 percent this week.
“Now that the Scotland independence vote is out of the way, risk aversion in asset markets has subsided,” said Soeren Moerch, head of fixed-income trading at Danske Bank A/S. “People re-focus on fundamentals. The U.K. story is now back on growth and its first rate increase.”
Spain’s government bonds advanced for a fifth day after the Scottish referendum results eased concern that the Iberian nation’s Catalonia region will break away. Spanish 10-year yields fell eight basis points to 2.20 percent. The rate on 10-year Italian debt dropped seven basis points to 2.37 percent.
The dollar added 0.1 percent to 108.87 yen after touching 109.46, the highest since August 2008. It is set to rise for a sixth week, the longest advance this year. The greenback increased 0.6 percent to $1.2849 per euro, 0.9 percent stronger this week. The yen rose 0.5 percent to 139.81 per euro.
The U.S. Dollar Index, which Intercontinental Exchange Inc. uses to track the greenback against the currencies of six U.S. trading partners, increased 0.4 percent. It has gained 0.5 percent on the week after the Fed signaled an end to unprecedented monetary stimulus.
Treasury 10-year yields fell one basis point to 2.60 percent. They earlier touched 2.65 percent, the highest since July 7.
The Bloomberg Commodity Index (BCOM) declined to the lowest since July 2009. Wheat fell 2.6 percent and West Texas Intermediate oil dropped 1 percent to $92.15 a barrel as the dollar rose. Gold slipped 0.6 percent to $1,219 an ounce. Silver tumbled under $18 an ounce to the cheapest in four years.
The MSCI Emerging Markets Index slipped 0.2 percent, heading for a weekly drop. Currencies weakened as the U.S. moves closer to raising interest rates, damping demand for riskier assets. A gauge of 20 developing-nation currencies slid 0.5 percent this week, a fifth consecutive decline, to the lowest level since 2009.
The Micex Index (INDEXCF) fell 1.2 percent, extending this week’s loss to 1.9 percent for a second week of declines. The arrest of billionaire Vladimir Evtushenkov sent his holding company, AFK Sistema, to its lowest level since May 2012.
To contact the reporters on this story: Joseph Ciolli in New York at jciolli@bloomberg.net; Jeremy Herron in New York at jherron8@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson atlthomasson@bloomberg.net Jeremy Herron, Sandy Hendry
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Friday, September 19, 2014
U.S. Stocks Fall as Small Caps Tumble; Alibaba Rallies
| See realtime coverage |
U.S. stocks fluctuated near records, as small-cap shares tumbled to offset gains among phone and utility shares. Commodities fell to a five-year low as oil sank while the dollar advanced.
U.S. Stocks Fall as Small Caps Tumble; Alibaba Rallies
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