Share

Asian shares mixed after US stocks retreat from record highs

Share

BANGKOK (AP) — Shares were mostly lower in Asia on Friday after an overnight decline on Wall Street spurred by disappointingly weak earnings reports from 3M and other industrial companies.

Concern that China may temper its economic stimulus pulled the Shanghai benchmark down 0.8% to 3,099.36. Japan’s Nikkei 225 index slipped 0.5% to 22,193.41 and the Kospi in South Korea declined 0.6% to 2,175.89. Australia’s S&P ASX 200 edged 0.1% higher to 6,388.20 while the Hang Seng in Hong Kong added 9.33 points to 29,564.49.

Shares fell in Taiwan and Singapore but rose in Jakarta.

Traders are watching for U.S. growth data later in the day and China-U.S. trade talks next week in Beijing.

Disappointingly weak earnings reports from 3M and other industrial companies kept U.S. stock indexes in check on Thursday, blotting out a set of blowout results from big-name tech companies.

3M, the maker of Scotch tape and various products for businesses, reported weaker revenue and profit than Wall Street expected for the first three months of the year. It also slashed its profit forecast for the full year, while United Parcel Service said its net income fell 17% on nearly flat revenue.

They helped drag industrial stocks to the largest loss among the 11 sectors that make up the S&P 500, and 3M’s loss dealt a particular sharp blow to the Dow Jones Industrial Average.

The S&P 500 edged 1.08 points lower to 2,926.17 while the Dow Jones Industrial average dropped 0.5%, to 26,462.08. The Nasdaq composite rose 0.2% to 8,118.68.

Tech companies have been leading the way this year, as the S&P 500 index returned to a record this week, on expectations that they can continue to deliver strong growth despite a slowing global economy. And many are delivering: Revenue jumped 14% for Microsoft and 26% for Facebook from a year ago.

Earnings reporting season is about a third of the way in, and investors are searching for clues about whether profit growth can accelerate later this year following a weak first quarter. The stock market has had a furious rally this year, largely because the Federal Reserve has said that it is halting its plan to raise interest rates, at least temporarily.

Analysts are now forecasting a drop of 2.8% in earnings for S&P 500 companies this reporting season. That’s not as bad as the 4% decline they were expecting a few weeks ago.

ENERGY: Benchmark U.S. crude gave up 31 cents to $64.90 per barrel in electronic trading on the New York Mercantile Exchange. It lost 68 cents to $65.21 per barrel on Thursday. Brent crude, the international standard, lost 18 cents to $73.46 per barrel.

CURRENCIES: The dollar was trading at 111.67 Japanese yen, up from 111.63 yen on Thursday. The euro was unchanged at $1.1133.

___

Related:
Police Detain Man in CEO Murder Case Thanks to Tip from Elderly McDonald's Customer

AP Business Writer Stan Choe contributed.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.

Conversation