Wall Street flat as banks fall after weak data; Fed eyed
- Author: Zachary Reyes Jun 15, 2017,
Jun 15, 2017, 21:38
A weaker-than-expected reading on U.S. consumer prices sent United States government bonds sharply higher, as the data sowed doubts about the likely pace of central bank rate hikes later in the year just hours before it was expected to raise them for a second time in 2017.
Shares of aircraft manufacturer Bombardier rose almost 3 per cent to C$2.44, recovering from a decline on Friday, when the U.S. International Trade Commission gave a green light to the U.S. Commerce Department to begin preparing anti-dumping and anti-subsidy duties against Bombardier's new jets. The S&P energy index.SPNY, which has had the biggest declines among sectors so far this year, ended up 0.7 percent."You're seeing people not want to come out of the market".
The Dow is up 56.50 points, or 0.3 percent. Investors are also looking for more details on the central bank's plans to trim its $4.5 trillion balance sheet. The Dow touched a record 21,332.77.
Interest rate cuts instituted in 2015 have largely done their job as the Canadian economy gathers momentum, the Bank of Canada's head said on Tuesday, the second top official in as many days to set the stage for eventual rate hikes.
The Fed cited continued U.S. economic growth and job market strength, proceeding with its first tightening cycle in more than a decade.
Japan's Nikkei was down 0.6 per cent and South Korea's KOSPI slid 1.2 per cent. Hong Kong's Hang Seng lost 1.3 per cent while Shanghai fell 0.5 per cent.
US stocks rose on Tuesday, with the Dow hitting an all-time high as bank and technology shares gained. The recent performance of bank and financial stocks marks the best run of form for 2017.
Art Hogan, chief market strategist at Wunderlich Securities, said the opposite movements of the Dow and Nasdaq suggested the market was resuming a rotation of investment away from highflying tech stocks, a trend that first surfaced late last week. Hanesbrands Inc.(HBI) shares rose 3.3%, while shares of Nike Inc.(NKE) advanced 1.2%. Oil futures traded higher, while gold futures and a key dollar index were trading flat, Treasury yields inched higher, with the 10-year yield was down at 2.193%.