Drop in Commodities Damps U.S. Stocks
May 04 2017 - 5:37PM
Dow Jones News
By Akane Otani and Riva Gold
The S&P 500 inched higher Thursday, as gains in shares of
consumer companies offset a slide in the energy sector.
Major indexes have climbed over the past few weeks as quarterly
earnings results have pointed to health among U.S. corporations.
The U.S. posted the biggest improvement in its revision ratio --
which measures the ratio of upward and downward earnings estimates
by analysts -- of all regions in April, according to Bank of
America Merrill Lynch.
Solid earnings could help stocks continue advancing, investors
and analysts say, even as some have expressed concerns about recent
weakness in inflation, consumer spending and economic growth.
"The earnings story is still very robust, and that's why
investors have been able to look through some of the softer
economic data," said Jason Draho, head of tactical asset allocation
Americas at UBS Wealth Management.
The Dow Jones Industrial Average fell 6.43 points, or less than
0.1%, to 20951.47. The S&P 500 edged up 1.39 points, or less
than 0.1%, to 2389.52 and the Nasdaq Composite rose 2.79 points, or
less than 0.1%, to 6075.34.
The S&P 500 consumer staples sector rose 0.8% on Thursday,
boosted by a rise in Kellogg shares. The cereal maker's stock
jumped $1.46, or 2.1%, to $70.40 after it posted quarterly earnings
that beat expectations.
Commodity prices slid across the board, putting pressure on
shares of energy companies. U.S. crude oil for June delivery
declined 4.8% to $45.52 a barrel, settling at its lowest level
since November. Energy shares in the S&P 500 fell 1.9%, with
Dow component Chevron falling 1.91, or 1.8%, to 104.81.
Metals slid amid concerns about Chinese demand for commodities
such as steel and iron. Copper for May delivery fell 1.2% to
$2.5020 a pound, its lowest settlement since January, while gold
for May delivery slid 1.6% to $1226.50 an ounce in its biggest
one-day slide since December.
Government bonds slipped Thursday, with the yield on the 10-year
U.S. Treasury note rising to 2.354% from 2.309% on Wednesday.
Yields rise as bond prices fall.
The Stoxx Europe 600 rose 0.7%, closing at its highest level
since August 2015, after a measure of activity in the eurozone's
manufacturing and services sectors rose to a six-year high and
retail sales figures improved.
The Shanghai Composite Index fell 0.3%, ending lower for a third
straight session, after service-sector activity in China hit its
lowest level in nearly a year for April.
South Korean equities powered to fresh highs, adding 1%
Thursday, while Japan's markets were closed for a holiday.
Write to Akane Otani at akane.otani@wsj.com and Riva Gold at
riva.gold@wsj.com
(END) Dow Jones Newswires
May 04, 2017 17:22 ET (21:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Tesla (NASDAQ:TSLA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tesla (NASDAQ:TSLA)
Historical Stock Chart
From Apr 2023 to Apr 2024