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Rising Labor Costs Cuts Nasdaq 1.7%
Sep 06, 4:43 PM EDT |
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| Rise in unit wage costs and lower than expected rise in business productivity kept inflation jitters alive. Market averages dropped. |
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| At close, Nasdaq, led three popular averages in decline with a loss of 1.7%. S&P 500 lost 1% and Dow dropped 0.6%. Labor Department reported labor cost rose 4.9% in the second quarter and 9% in the first quarter. The second quarter increase in total cost was the highest since 1990. Rising labor costs stoked the fear of inflation and cut market averages down in the afternoon trading. |
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Europe Declines on Autos Downgrade
Sep 06, 12:19 PM EDT |
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| Lehman Bros downgraded Peugeot and DaimlerChrysler to equal-weight and cut the European car sector to neutral. Peugeot lost 2%. |
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| European markets closed sharply lower Wednesday, reflecting profit taking and weakness in the auto and oil sectors. Losses on Wall Street amid inflation concerns also added to the pressure. The German DAX 30 led losers, falling 1.2%, followed by the French CAC 40, down 1.1%, and London FTSE 100, down 0.9%. |
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Techs Send Nasdaq 1% Lower
Sep 06, 11:38 AM EDT |
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| Ford Motor Co. rose 2.38%, to $8.59, after announcing that it had hired former Boeing executive Alan Mulally to run the company. |
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| The stock averages traded lower with the Nasdaq notably down, reflecting weakness in the tech sector. The Institute of Supply Management reported that the nonmanufacturing sector of the U.S. economy expanded at a faster pace in August. The ISM nonmanufacturing index jumped to 57% from 54.8% in July, above expectations of a rise to 55.4%. |
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Large-Caps Rally In India
Sep 06, 10:30 AM EDT |
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| The market closed higher as large-caps were in heavy trading volume. Reliance Telecom launches massive under-sea-cable network spanning 12,000 km from |
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| The Sensex reached four-month high, as the turnover on BSE and NSE rose sharply today. The benchmark index, however, erased some of the gains in late trading, as traders took profit. Metals, capital goods, oil and gas and pharma stocks gained, while autos and banking stocks lost. L&T, Reliance Energy, Bharti Airtel led the advancers, ONGC and HDFC Bank lost the most. Reliance Telecom opens iternational high speed Internet bandwidth spanning all the way to Egypt. |
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Labor-Cost Jump Pulls Stocks Lower
Sep 06, 10:00 AM EDT |
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| Stock markets opened in the negative amid renewed inflation worries after productivity data showed that Q2 unit labor costs reached a 16-year high. |
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| Labor cost growth was revised up to 4.9% compared to the preliminary reading of 4.2% growth. Second-quarter productivity was revised to 1.6%, up from the 1.1% level reported a month ago. However, Ford Motor Co. helped to limit the downward trend, rallying 2.3% on news that it had hired former Boeing executive Alan Mulally to run the company. |
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Intel's Job Cuts Drag Futures
Sep 06, 8:49 AM EDT |
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| Crude oil futures fell 44 cents to $68.30 a barrel. The U.S. dollar was flat against the euro and up on the yen. |
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| U.S. stock market futures indicated a weak opening on Wednesday amid Intel Corp.’s job-cutting restructuring plan. Intel slipped 1.3% in electronic trading after the chip maker said it will cut a total of 10,500 workers by the middle of 2007. Futures extended losses after data showed Q2 unit labor costs were revised higher than expected, raising concerns about new interest-rate hikes. |
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Bertelsmann to Sell BMG Music for $2.1 B
Sep 06, 8:06 AM EDT |
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| Bertelsmann AG, German media conglomerate, agreed to sell its music publishing arm to Vivendi SA for $2.1 billion. |
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| Bertelsmann''s chief financial Thomas Rabe said the sale of the unit will help pay back the $5.76 billion of debt raised to finance the buyback of the 25% stake in the company held by Groupe Bruxelles Lambert. Bertelsmann expects that the sale will increase net income by approximately $1.28 billion. |
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Japan Leads Asian Decline
Sep 06, 7:26 AM EDT |
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| Asian markets were mixed to lower Wednesday, as the Nikkei Average extended losses in the afternoon session. |
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| Asian shares finished mostly lower Wednesday, as Japanese stocks were hit by profit-taking, and HSBC Holdings pushed Hong Kong stocks lower on worries index funds will sell the bank ahead of a change in the Hang Seng Index. Australia declined too after the government released figures showing the economy had grown at a slower pace than expected in the second quarter. Shanghai Composite Index bucked the downtrend and closed higher. |
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European Stocks Lower As Autos Sink
Sep 06, 6:33 AM EDT |
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| Europe was edged lower Wednesday, as automakers were weaker, though some upbeat earnings results capped losses. |
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| The auto segment slipped after a leading broker turned neutral on the sector, and due to the dull U.S. trading overnight. Losses were cushioned, however, by a number of positive earnings reports and oil prices falling back below $69 a barrel. The U.K. FTSE 100 index shed 0.2%, the German DAX Xetra 30 index lost 0.2%, the French CAC-40 index declined 0.1%. |
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Gold, Silver Advance
Sep 06, 5:17 AM EDT |
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| Gold and silver prices increased after the long holiday weekend, with funds being amassed into the market as the jewelry buying season starts. |
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| Reports that production of gold is shaky at best is invigorating the bullion market exactly on the threshold of the approaching Indian wedding season. Gold still has some repair work to complete and will need to overcome resistance around the mid-$600 level in order to attempt subsequent hits at $680 or higher. |
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