Connect with us

Business

U.S. Stocks Edge Lower as Investors Pause

Published

on

NEW YORK – Stocks edged down slightly at mid-morning, as investors paused to assess the market’s string of recent gains and a batch of corporate deal news.

The Dow Jones Industrial Average slipped 27 points, or 0.2%, to 16920. The S&P 500 index was nearly flat at 1962. The Nasdaq Composite Index fell two points, or 0.1%, to 4366.

The modest move comes on the heels of a recent steady grind higher in stocks. The S&P 500 posted its third straight all-time high and its 22nd record of the year on Friday, closing up 6.2% on the year. The Dow closed up 2.2% for the year.The slow climb comes as trading volumes have tumbled and stocks have failed to make big moves. Monday was on track to be the 46th straight session in which the S&P 500 closed with a move of less than 1%—the longest such stretch since 1995.

The data calendar was light, except for a report showing that existing home sales increased 4.9% in May to a seasonally adjusted annual rate of 4.89 million, according to the National Association of Realtors. Economists surveyed by The Wall Street Journal had forecast a rate of 4.75 million for the month.

Sean McCarthy, regional chief investment officer at Wells Fargo Private Bank, said he has been encouraged by the recent string of upbeat economic data following a slowdown earlier in the year. He said he expects stocks broadly to post modest single-digit gains this year as long as the economy continues to improve and corporate earnings grow as expected.

“What the market has wanted to see is good economic data, and overall we’re getting that in the second quarter,” said Mr. McCarthy, whose firm manages $170 billion. He said his firm remains parked in shares of companies that benefit from an economic rebound, including industrial and technology companies, as well as shares of companies in developed markets overseas.The yield on the 10-year Treasury note eased slightly to 2.602% from 2.625% late Friday.

Gold futures were little changed at $1,315.70 an ounce, after surging 3.3% last week, the biggest weekly gain in four months. Crude oil futures fell 0.1% to $106.70 a barrel. The dollar edged higher against the euro but lost some ground against the yen.

MarketWatch’s Victor Reklaitis joins Simon Constable on the News Hub to discuss which stocks to watch today, including Oracle, Integrys Energy Group and General Electric. Photo: Getty
In corporate news, Micros Systems rose 3.4% after The Wall Street Journal reported that Oracle ORCL +0.67% is close to sealing a deal to buy the software company for about $5 billion. Oracle edged up 0.9%.

Integrys Energy TEG +12.45% Group surged 14.5% after the company agreed to be acquired by Wisconsin Energy WEC -2.96% for $5.71 billion in cash and stock. Wisconsin Energy shares eased 1%.

Lululemon Athletica LULU +3.38% rallied 2.2% after The Wall Street Journal reported the yoga gear maker’s founder, Dennis “Chip” Wilson, is working with bankers at Goldman Sachs to find a way to gain more influence over the company’s operations.

Central Garden & Pet climbed 8.6% after Harbinger Group HRG +1.08% said it has offered to buy the company for about $505 million, or $1.1 billion including debt. Harbinger also offered, as an alternative to buying the entire company, to buy just Central’s pet business for $750 million. Harbinger shares rose 1.7%.

In Europe, Markit’s preliminary June purchasing managers index for the euro zone, which measures activity across both the manufacturing and services sectors, fell to 52.8 from 53.5 in May, missing expectations of 53.3. Readings above 50 signal expansion. The main weak spot was France, where activity contracted for a second straight month, and at a quickening pace.

European markets declined following the disappointing euro-zone data. The Stoxx Europe 600 slipped 0.3%, after rising last week to post the 12th weekly gain in 14 weeks.

“Investors had been expecting a much stronger acceleration in economic activity” in recent months, said François Savary, who oversees around $10 billion of assets as chief investment officer at Swiss bank Reyl. “This puts a question mark against the expected improvement in corporate earnings for the second quarter.”

France’s CAC 40 index lost 0.2%, Germany’s DAX 30 gave up 0.3% and the U.K.’s FTSE 100 fell 0.3%.

Meanwhile, HSBC’s preliminary manufacturing purchasing managers index for China rose to a seven-month high of 50.8 in June from 49.4 in May. That marked the first time this year that activity expanded from the previous month.

Asian markets were mixed as investors assessed the upbeat data out of China. The Shanghai Composite Index slipped 0.1% on expectations that the data might urge policy makers to hold back on stimulus measures. Japan’s Nikkei Stock Average rose 0.1% to close at a near five-month high.

– WALLSTREET JOURNAL

Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Business

Tesla Aims for 2028 Commercial Production of Flying Car

Published

on

Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

Continue Reading

Business

Marketers Eye Portion of FG’s Petrol Discount

Published

on

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

Continue Reading

Business

Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

Published

on

In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x