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December 13, 2017
Friday, February 6, 2015

Wall St ends down on interest rate

The S&P 500 index of utilities, often used as a bond proxy by investors in a low-rate environment, fell 4.1 percent, its biggest daily drop since August 2011.

Wall Street stocks fell on Friday as a better-than-expected US jobs report raised expectations that the Federal Reserve will increase interest rates by midyear, while renewed worries over Greece's debt negotiations added to the bearish tone.

The S&P 500 index of utilities, often used as a bond proxy by investors in a low-rate environment, fell 4.1 percent, its biggest daily drop since August 2011, as US government debt yields jumped.

Euro zone finance ministers are waiting to hear on February 11 how Greece wants to become financially independent, the chairman of the ministers said. Greece must apply for a bailout extension by February 16 at the latest to ensure that the euro zone keeps backing it financially, the Eurogroup chairman said.

The Dow Jones industrial average fell 60.59 points, or 0.34 percent, to 17,824.29, the S&P 500 lost 7.05 points, or 0.34 percent, to 2,055.47,, and the Nasdaq Composite dropped 20.70 points, or 0.43 percent, to 4,744.40.

For the week, the S&P 500 was up 3 percent, its best weekly gain since December, while the Nasdaq was up 2.4 percent.

About 7.7 billion shares changed hands on US exchanges, compared with the 7.9 billion average for the last five sessions, according to data from BATS Global Markets.

Among the day's gainers, Twitter jumped 16.4 percent to $48.01 after any earnings report on Thursday that beat Wall Street's profit and revenue targets in the fourth quarter.

The benchmark S&P 500 index posted 43 new 52-week highs and two new lows; the Nasdaq Composite recorded 99 new highs and 26 new lows.

In Europe, stocks dipped with regional indexes pausing just below recent multi-year highs as investors looked to the January US non-farm payrolls report due later in the session.

Shares in Tate & Lyle were the biggest losers across Europe, sinking 14 percent after the British ingredients company said annual profits would be below the range it forecast in September, hit by a weak performance in sweeteners in its third quarter.

Danish freight forwarder DSV also featured among the top losers, down 5.1 percent after fourth quarter operating profit missed expectations and the group proposed a lower dividend than predicted by analysts in a Reuters poll.

Shares in Norwegian oil firm Statoil rose 2.5 percent after it maintained its dividend despite big writedowns on the value of its assets due to plunging crude oil prices.

The sharp drop in oil prices that started in mid-2014 has forced a lot of oil companies to book big writedowns while a number of oil services companies have suspended their dividend.

Shares in Swiss telecoms company Sunrise made a solid market debut, rising 5 percent above its IPO price of 68 Swiss francs.

Backed by European private equity fund CVC, Sunrise is raising 1.36 billion francs with the listing, which went ahead despite a surge in the franc after the central bank scrapped the currency's cap against the euro.

the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,484.54 points, trading in a tight range ahead of the US jobs data.

Overall, Europe's earnings season has so far been quite positive.

About 60 companies listed on the broad STOXX Europe 600 have reported results, with 61 percent exceeding analyst forecasts, according to Thomson Reuters I/B/E/S data. In a typical quarter, 48 percent of STOXX 600 companies beat estimates.

Meanwhile, Japanese shares rose today after oil prices rebounded, but investors remained cautious ahead of a US jobs report later in the day that could give clues on the timing of the US Federal Reserve's plan to raise rates.

The Nikkei share average ended 0.8 percent higher at 17,648.50. For the week, the Nikkei fell 0.1 percent. The broader Topix rose 0.5 percent to 1,417.19, and the JPX-Nikkei Index 400 advanced 0.6 percent to 12,847.97.

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