The Dow and S&P 500 indexes edged lower in afternoon trading today following further declines in energy shares and a disappointing outlook from Wal-Mart, while the Nasdaq gained.
A drop in shares of Wal-Mart Stores weighed down the Dow after the company cut its sales outlook, citing the impact of a stronger dollar. Shares fell 2.6 percent to $84.08.
On the upside, Priceline Group rallied 8.1 percent to $1,214.34 on its results. The stock was the largest percentage gainer on both the Nasdaq and S&P 500.
The S&P Energy index was down 0.5 percent, among the biggest decliners for S&P sectors. Exxon Mobil fell 1.1 percent to $90.02 as oil prices slid following data that showed another big weekly build in US crude inventories.
The decline in energy prices has eroded the profits of oil companies, with many cutting 2015 spending plans in a bearish sign for economic growth prospects. Late Wednesday, Marathon Oil said it would trim its 2015 capital budget by 20 percent, the second reduction of that magnitude since December. Its shares were flat at $29.02 on Thursday.
The Dow Jones industrial average fell 51.82 points, or 0.29 percent, to 17,978.03, the S&P 500 lost 3.45 points, or 0.16 percent, to 2,096.23 and the Nasdaq Composite added 15.46 points, or 0.32 percent, to 4,921.82.
The German finance ministry rejected a new proposal from Athens for an extension of its bailout program, saying it fell short of conditions set out by the country’s euro zone partners. On Wednesday, a Greek government spokesperson said the country aimed to conclude a deal with its euro zone partners «soon.»
The biggest percentage decliner in the S&P 500 was Host Hotels & Resorts, down 7.3 percent at $21.82, after giving a disappointing forecast.
Declining issues outnumbered advancing ones on the NYSE by 1,531 to 1,434, for a 1.07-to-1 ratio on the downside; on the Nasdaq, 1,424 issues rose and 1,227 fell for a 1.16-to-1 ratio favoring advancers.
The benchmark S&P 500 index was posting 60 new 52-week highs and 1 new lows; the Nasdaq Composite was recording 92 new highs and 18 new lows.
In Europe, stock rally lost steam with a benchmark index retreating from a seven-year high, after Germany rejected a new proposal from Athens for an extension of its bailout programme.
The German finance ministry described the Greek proposal as «not a substantial solution» because it failed to fulfill the conditions of an EU/IMF bailout programme. Greek Prime Minister Alexis Tsipras had promised to ditch those requirements when he won an election last month.
With the programme due to expire in a little more than a week, Greece urgently needs to secure a financial lifeline to keep the country afloat beyond late March.
European stocks had rallied earlier in the session, with the FTSEurofirst 300 index climbing to as high as 1,522.25 points, a level not seen since late 2007, after Greece made its proposal for a six-month extension of the bailout.
But the benchmark index trimmed gains and ended 0.3 percent higher at 1,520.22 points. So far this year, the FTSEurofirst 300 has surged 11 percent, outpacing Wall Street’s S&P 500 , up 2 percent over the same period.
The Athens Stock Exchange FTSE Banks Index closed up 5.4 percent, after rising by as much as 15 percent during the session, and extending its recent rebound from a 75 percent slump since March 2014.
Alpha Bank shares rose 6.4 percent and Eurobank gained 2.6 percent.
Around Europe, UK’s FTSE 100 index lost 0.1 percent, Germany’s DAX index added 0.4 percent, and France’s CAC 40 gained 0.7 percent.
France’s Capgemini surged 4.9 percent after the IT services company said it expected sales to accelerate this year with improved profitability, fuelled by strength in the North American market.
Germany’s Rheinmetall gained 7.9 percent. It reported a 76 percent jump in fourth-quarter orders at its problem-hit defence division.
Randstad rose 7.3 percent. The Dutch employment services group posted a 26 percent rise in fourth-quarter core earnings and said growth had picked up in the first months of 2015.
Shares in Air France-KLM fell 5 percent after the group warned that overcapacity on some routes and currency swings would offset gains from lower oil prices this year. It will step up cost cuts and ease a key debt reduction goal.
Half-way into the earnings season, European corporate results have been positive, with 56 percent of companies meeting or beating earnings forecasts, according to Thomson Reuters StarMine data. In absolute terms, quarterly earnings are up 8.6 percent on average and 23 percent when excluding results from the energy sector, hard hit by the drop in oil prices.
Meanwhile, Japanese stocks rose to a 15-year high, helped by gains in financial stocks, while Sony Corp jumped on a well-received business plan.
The Nikkei share average ended 0.4 percent higher to 18,264.79, its highest closing level since May 2000. Market players said that a combination of factors have helped to underpin demand from foreign investors for Japanese stocks. These include news state-owned Japan Post Holdings Co’s ditching of its conservative approach to investments with its $5.1 billion takeover of Australia’s Toll Holdings, and the Nikkei breaking new ground on its dollar-based value.
Among today’s gainers, Sony soared as much as 4.0 percent to 3,300 yen, the highest since April 2010 after saying that it aims to boost operating profit 25-fold within three years by growing its camera sensor and PlayStation operations.
Banking shares were higher, with Mitsubishi UFJ Financial Group and Mizuho Financial Group both rising 3.6 percent. Some analysts noted overbought technical signals in the market suggest near-term profit-taking could be possible.
The toraku ratio, or up-down ration, rose to 138.70. A level above 120 signals an overbought market. The ratio is calculated by dividing the 25-day moving average of stocks on the Tokyo Stock Exchange’s first section that gained by the 25-day average of those that fell.
The broader Topix rose 0.8 percent to 1,494.93, the highest closing level since December 2007. The JPX-Nikkei Index 400 gained 0.8 percent to 13,557.69.
buenosairesherald.com