The Star Beacon; Ashtabula, Ohio

World, nation, state

July 3, 2013

Stocks dip on continuing turmoil in Egypt

NEW YORK — The stock market ended slightly lower Tuesday after reports of intensifying political turmoil in Egypt offset good news about the U.S. economy.

Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. Eastern Daylight Time after news emerged that Egypt’s military had drawn up plans to suspend the country’s constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.

The price of oil climbed close to $100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.

“It’s more or less Egypt unrest,” said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. “These very large protests are being televised and broadcast — that’s spooking people.”

The Standard & Poor’s 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08

The Dow Jones industrial average fell 42.55 points, or 0.3 percent, to 14,932.41 The Nasdaq composite slipped 1.09 points, a fraction of a percentage point, at 3,433.40

Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close at 1 p.m. on Wednesday, ahead of the Independence Day holiday on Thursday. The market re-opens Friday.

Crude oil jumped about $1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up $1.61 at $99.60 a barrel in New York. It last crossed $100 on Sept. 14 of last year.

The market’s early gains were driven by a number of strong economic reports.

U.S. auto sales reached 7.8 million in the six months to June, the highest first-half total since 2007. That helped lift Ford’s stock 44 cents, or 2.8 percent, to $16.18.

U.S. factory orders rose in May, helped by a third straight month of stronger business investment.

Also, U.S. home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.

When trading resumes Friday, investors will turn their attention to a key gauge of the economy — the government’s monthly employment report.

Economists forecast that the U.S. economy added 165,000 jobs in June, according to data compiled by FactSet. The Dow surged 200 points June 7 after the Labor Department said that U.S. employers added 175,000 jobs in May. The Federal Reserve has said the jobs market will be critical in determining when it ends its bond buying, which has kept interest rates low and driven a surge in stocks this year.

Investors and traders are also starting to think about corporate earnings, which begin in earnest next week. While corporate profits have reached record levels, most of the gains have come from cutting costs rather than increasing sales.

“We’re in the middle of a transition,” said Chris Wolfe, chief investment officer at Merrill Lynch Private Banking and Investment Group. “You would expect to see, over the balance of this year and going into next year, somewhat stronger macroeconomic data that translates directly into stronger corporate revenue growth.”

Alcoa, the first company in the Dow to report earnings, will release its second-quarter results after the market closes July 8.

In government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent.

In other trading, the price of gold fell $12.30, or 1 percent, to close at $1,243.40 an ounce.

Among stocks making big moves:

— Zynga jumped 20 cents, or 6.5 percent, to $3.27 after the troubled maker of “FarmVille” and other online games said CEO Mark Pincus would step aside. The company’s stock is down almost 70 percent since its 2011 initial public offering at $10 per share.

— Achillion Pharmaceuticals fell $2.10, or 25.1 percent, to $6.26 after the drug developer said regulators Monday placed a hold on an early-stage study involving its potential hepatitis C treatment.

— DaVita HealthCare Partners fell $7.15, or 5.9 percent, to $114, after the government proposed cutting the rates of Medicare payments to dialysis service providers.

1
Text Only
World, nation, state
  • Rain of asteroids melted early Earth, boiled its oceans

    When you look up at the moon’s pockmarked face, you’re actually staring at Earth’s early history. The rain of asteroids that pummeled the lunar surface hit our planet too - it’s just that erosion and plate tectonics blotted out the evidence. In fact, no rocks anywhere in the world survived to tell the story of the first 500 million years of Earth’s 4.5 billion-year existence, a tumultuous period of frequent impacts known darkly as the Hadean.

    August 1, 2014

  • As U.S. job market strengthens, many don’t feel it

    For millions of workers, happy days aren’t quite here again.

    August 1, 2014

  • Energy boom brings new focus on rail, pipeline safety

    The sharp increase in U.S. oil production and its promise of energy independence is coming with a disastrous byproduct: spills that threaten lives, communities and the environment.

    August 1, 2014

  • Deep-sea octopus goes without food for 4.5 years while watching eggs

    Talk about extreme parenting: Scientists have found a deep-sea octopus mama that faithfully guards the same clutch of eggs for an incredible 4 1/2 years — a record.

    July 31, 2014

  • Study finds 35 percent in U.S. facing debt collectors

    More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute.

    July 30, 2014

  • U.S. blasts Israel for Kerry criticism

    The Obama administration pushed back strongly Monday at a torrent of Israeli criticism over Secretary of State John Kerry’s latest bid to secure a cease-fire with Hamas, accusing some in Israel of launching a “misinformation campaign” against the top American diplomat.

    July 29, 2014

  • Outlook on Medicare finances improves

    Medicare’s finances are looking brighter, the government said Monday. The program’s giant hospital trust fund won’t be exhausted until 2030 — four years later than last year’s estimate.

    July 29, 2014

  • Plan to simplify 2015 health renewals may backfire

    If you have health insurance on your job, you probably don’t give much thought to each year’s renewal. But make the same assumption in one of the new health law plans, and it could lead to costly surprises.

    July 28, 2014

  • Hospital shooting suspect charged with murder

    A man accused of fatally shooting his caseworker and grazing his psychiatrist at a suburban Philadelphia hospital complex before the doctor returned fire has been charged with murder.

    July 28, 2014

  • Man seeks video of Oklahoma City bombing

    One man’s quest to explain his brother’s mysterious jail cell death 19 years ago has rekindled long-dormant questions about whether others were involved in the 1995 Oklahoma City bombing.

    July 28, 2014

House Ads
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video