finance
S&P 500 Holds Steady as Tech Stocks Decline
Wall Street indexes showed mixed results with the S&P 500 nearly unchanged and the Dow Jones Industrial Average rising slightly. Technology stocks fell while other sectors advanced. Australian futures pointed to a modest decline at the open.
The Sydney Morning HeraldAudio version
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The S&P 500 was mostly unchanged after erasing an early loss. The Dow Jones Industrial Average rose 57 points, or 0.1 per cent, in mid-afternoon trade, while the Nasdaq composite fell 0.3 per cent. Australian sharemarket futures pointed to a loss of 18 points, or 0.2 per cent, at the open.
The ASX lost 0.6 per cent on Wednesday to begin the new financial year. The Australian dollar traded at US68.96¢.
Mills rose 7.8 per cent after reporting stronger quarterly results than expected and announcing a plan to cut $US3 billion in costs over four years. Two out of every three stocks in the S&P 500 advanced. Kroger gained 0.1 per cent after agreeing to buy Giant Eagle for $US1.25 billion in cash plus $US400 million in liabilities.
Nike rose 2.3 per cent after posting a stronger profit than analysts expected.
A report showed U.S. manufacturing grew last month at a slower pace than economists expected, with prices increasing more slowly. The 10-year Treasury yield fell to 4.47 per cent from a morning peak near 4.50 per cent. Yields have risen since the war with Iran began amid concerns about inflation from higher oil prices.
The weaker manufacturing data and lower yields lifted gold 1.1 per cent to $US4,082.40 per ounce.
Technology fell 9.6 per cent, Nvidia dropped 0.9 per cent, and Applied Materials declined 11.1 per cent. Oil prices eased 2.1 per cent to $US71.40 per barrel for Brent crude. South Korea's Kospi fell 2 per cent while Japan's Nikkei 225 rose 0.6 per cent.
