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
  • U.S. says Russia is firing across border into Ukraine

    Russia is launching artillery attacks from its soil on Ukrainian troops and preparing to move heavier weaponry across the border, the U.S. and Ukraine charged Friday in what appeared to be an ominous escalation of the crisis.

    July 25, 2014

  • Gaza sides agree to lull but truce efforts stall

     Israel-Hamas fighting looked headed for escalation after U.S. Secretary of State John Kerry failed Friday to broker a weeklong truce as a first step toward a broader deal and Israel’s defense minister warned Israel might soon expand its Gaza ground operation “significantly.”

    July 25, 2014

  • Planes with Ukraine bodies arrive in Netherlands

    Two more military aircraft carrying remains of victims from the Malaysian plane disaster arrived in the Netherlands on Thursday, while Australian and Dutch diplomats joined to promote a plan for a U.N. team to secure the crash site which has been controlled by pro-Russian rebels.

    July 24, 2014

  • UN school in Gaza caught in cross-fire; 15 killed

    A U.N. school in Gaza crowded with hundreds of Palestinians seeking refuge from fierce fighting came under fire Thursday, killing at least 15 civilians and leaving a sad tableau of blood-spattered pillows, blankets and children’s clothing scattered in the courtyard.

    July 24, 2014

  • Air Algerie jet with 116 on board crashes in Mali

    An Air Algerie jetliner carrying 116 people crashed Thursday in a rainstorm over restive Mali, and its wreckage was found near the border of neighboring Burkina Faso — the third major international aviation disaster in a week.

    July 24, 2014

  • Troubled childhoods may prompt men to volunteer for military service

    In the era of the all-volunteer U.S. military, men who served are more than twice as likely as those who never did to have been sexually abused as children and to have grown up around domestic violence and substance abuse, a new study has found.

    July 24, 2014

  • As poverty continues to rise, fewer Ohioans are receiving state aid

    The number of Ohioans receiving public assistance continues to drop even while poverty increases, raising questions about how the state helps the poor.

    July 24, 2014

  • ’Saltwater’ from fracking spill much different from ocean water

    In early July, a million gallons of salty drilling waste spilled from a pipeline onto a steep hillside in western North Dakota’s Fort Berthold Reservation. The waste — a byproduct of oil and gas production — has now reached a tributary of Lake Sakakawea, which provides drinking water to the reservation.

    July 24, 2014

  • 40 bodies from jet solemnly returned to Dutch soil

    Victims of the Malaysian jetliner shot down over Ukraine returned at last Wednesday to Dutch soil in 40 wooden coffins, solemnly and gently carried to 40 identical hearses, flags at half-staff flapping in the wind.

    July 23, 2014

  • U.S. pushes for truce as Gaza battle rages

    The United States announced signs of progress in cease-fire talks Wednesday, but prospects for a quick end to the fighting were dim as Palestinian families fled fierce battles in southern Gaza and the death toll rose to more than 700 Palestinians and 34 Israelis.

    July 23, 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