Overseas Market Report
US stocks have mostly edged higher, with the S&P 500 and Nasdaq rebounding to snap a four-day losing streak, although a drop in Apple kept gains in check. The Dow fell on Monday, with Travelers down 1.9 per cent. UnitedHealth shares also weighed on the Dow. The stock fell 3.2 per cent after a Citigroup downgrade.
Apple shares dropped 1.3 per cent, weighing on the three major indexes. But the S&P 500 and Nasdaq rebounded from losses last week. “People are trying to test the waters after the selling last week,” said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York.
US President Donald Trump said on Friday he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $US267 billion of goods over and above planned tariffs on $US200 billion of Chinese products. China said it will respond if Washington takes any new steps on trade. Also, Apple last week said a “wide range” of its products would be hit, although it did not mention the iPhone.
At the same time, investors are optimistic about US economic data and forecasts for earnings. “Fundamentals appear to be in place to support share prices,” said John Carey, portfolio manager at Amundi Pioneer Asset Management in Boston. “Economic numbers continue to be positive, and the outlook for earnings is positive.”
Morning Market Note - Tuesday 11th September