| New York Times | - |
United
States markets were lower at midday on Friday as the stocks of energy
companies fell along with the price of oil. Investors were weighing the
latest batch of corporate earnings results and a report showing a slight
increase in inflation last month.
United
States markets were lower at midday on Friday as the stocks of energy
companies fell along with the price of oil. Investors were weighing the
latest batch of corporate earnings results and a report showing a slight
increase in inflation last month. Investors were also looking ahead to a
speech later in the day by the Federal Reserve chairwoman.
KEEPING SCORE
The Dow Jones industrial average fell 0.29 percent and the Standard
& Poor’s 500-stock index was down 0.14 percent. The Nasdaq composite
index turned lower, down 0.03 percent.
ENERGY
Benchmark United States crude fell 81 cents to $59.91 a barrel, helping
push down the stocks of drillers and other energy-related companies.
Hess and Marathon Oil each fell more than 1 percent.
RISING PRICES
Consumer prices rose slightly in April for the third straight month,
suggesting that an improving economy could be setting the stage for the
Federal Reserve to raise the benchmark short-term interest rate from the
near-zero level where it has been for more than six years.
Consumer
prices edged up 0.1 percent from the previous month. Core inflation,
which excludes volatile food and energy prices, climbed 0.3 percent, the
biggest gain in 15 months.
THE QUOTE
“We don’t think inflation is really a problem here,” said Jim McDonald,
a chief investment strategist at Northern Trust. “But the uptick is a
cover for the Fed to do what it wants to do anyway: Get off zero rates.”
LEAPING DEERE
Deere shares rose 3 percent after the equipment maker raised its profit
forecast for the year. Strong sales in construction equipment offset a
global agricultural slowdown.
SOUP SURGE Campbell Soup stock was up 2 percent after the company reported better-than-expected earnings results.
CHINA RECORD
The Shanghai Composite Index jumped 2.8 percent to close at 4,657.60,
the highest level since 2008. Investors are betting that the economic
stimulus that has powered the rally will continue after recent poor
indicators, including a disappointing manufacturing index on Thursday.
EUROPEAN MARKETS In Germany, the DAX fell 0.3 percent and in France, the CAC 40 was up 0.1 percent. The FTSE 100 was up 0.6 percent in Britain.
U.S. ECONOMY
Global investors were awaiting a speech later Friday by the Federal
Reserve chairwoman, Janet L. Yellen, on the outlook for the world’s
biggest economy. Stock markets are hitting record highs as investors bet
the central bank will delay raising interest rates based on mixed
reports on the world’s biggest economy.
ASIA’S DAY
The Nikkei 225 closed 0.3 percent higher in Japan, while in Hong Kong,
the Hang Seng gained 1.7 percent. The Kospi was up 1.1 percent in South
Korea. In Australia, the S.&P./ASX 200 was little changed. Southeast
Asian indexes were mixed.
CURRENCIES AND BONDS
The dollar rose to 121.48 yen from 121.05 yen. The euro fell to $1.1025
from $1.1110. Bond prices rose. The yield on the benchmark 10-year
Treasury note rose to 2.21 percent from 2.19 percent late Thursday.
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