clearn.png
Monday November 29th, 2021 12:39AM

Wall Street opens lower; Gap, Nordstrom sink on weak results

By The Associated Press
Related Articles
  Contact Editor

Stocks are opening lower on Wall Street as the market continues an unsettled period of trading ahead of the Thanksgiving holiday in the U.S. The S&P 500 gave back 0.3% in the early going Wednesday. The benchmark index, which set a record high last Thursday, was weighed down by losses in technology and consumer-focused companies. Tesla fell nearly 4%, while Gap sank 20% after reporting results that came in far below analysts’ forecasts. Nordstrom gave up 25% after it also reported very weak results. European markets were lower and Asian markets closed mixed. Crude oil prices slipped.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

TOKYO (AP) — Global shares were mixed Wednesday as worries about inflation set off expectations the U.S. Federal Reserve might move faster than anticipated to raise interest rates.

France's CAC 40 edged up 0.4% to 7,074.05 in early trading, while Germany's DAX rose 0.1% to 15,955.14. Britain's FTSE 100 added 0.5% to 7,303.68. The future for the Dow Jones Industrial Average edged 0.1% lower to 35,744.00. The S&P 500 future fell 0.1% to 4,685.00.

Stocks are likely to see more mixed trading this week, with U.S. markets closing on Thursday for Thanksgiving and then closing early on Friday.

In Asian trading, Japan's Nikkei 225 dropped 1.6% to finish at 29,302.66, following a national holiday Tuesday. Technology shares especially took a hit over the speculation about the Fed's moves. South Korea's Kospi slipped 0.1% to 2,994.29. In Australia, the S&P/ASX 200 edged down 0.2% to 7,399.40. Hong Kong's Hang Seng rose 0.1% to 24,685.50, while the Shanghai Composite edged up 0.1% to 3,592.70.

“Markets continue to shift their expectations toward a tighter Fed monetary policy," said Yeap Jun Rong, a market strategist at IG, adding that investors will be watching for U.S. data being released later in the day.

Wall Street will get a few pieces of economic data on Wednesday that could give investors a better sense of the economic recovery’s pace and breadth.

The Labor Department will release its weekly report on unemployment benefits. The Commerce Department releases data on third-quarter gross domestic product and its new home sales report for October.

The Fed will release minutes later in the day from its October policy meeting, potentially giving investors more details on the central bank’s plan to start trimming bond purchases that have helped keep interest rates low.

Some Asian central banks have already begun to raise interest rates to tamp down inflation. New Zealand's raised its benchmark interest rate by 0.25% Wednesday to 0.75%.

In October the Reserve Bank raised it from a record low 0.25% to 0.5%, the first such hike in more than seven years, removing some support it put in place when the coronavirus pandemic began.

Investors have been watching to see if pressure from rising inflation will goad the Fed into speeding up its plans for trimming bond purchases and raising its benchmark interest rate.

The price of U.S. crude oil rose extended gains after President Joe Biden ordered 50 million barrels of oil released from the nation’s strategic reserve to help bring down energy costs. The move was made in concert with other big oil-consuming nations, including Japan, South Korea and India.

On Tuesday, benchmark U.S. crude jumped 2.3% and wholesale gasoline rose 3.4%

The release of the oil reserves may not necessarily bring down oil prices, but analysts say it may serve as a message to OPEC. Biden has been urging other big oil producers to more quickly raise output to match higher demand as economies recover from earlier phases of the pandemic.

On Wednesday, benchmark U.S. crude rose 42 cents to $78.92 a barrel. Brent crude, the international standard, added 45 cents to $82.76 a barrel.

The U.S. dollar fell to 114.95 Japanese yen from 115.15 yen. The euro cost $1.1238, down from $1.1249.

___

Associated Press writer Nick Perry contributed from Wellington, New Zealand.

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US invitation of Taiwan to democracy summit angers China
The Biden administration has invited Taiwan to its upcoming Summit for Democracy, prompting sharp criticism from China, which considers the self-ruled island as its territory
10:02AM ( 6 minutes ago )
Biden names women of color to lead White House budget office
President Joe Biden is nominating Shalanda Young to head the Office of Management and Budget
10:02AM ( 6 minutes ago )
Wall Street opens lower; Gap, Nordstrom sink on weak results
Stocks are opening lower on Wall Street as the market continues an unsettled period of trading ahead of the Thanksgiving holiday in the U.S. The S&P 500 gave back 0.3% in the early going Wednesday
9:45AM ( 22 minutes ago )
Associated Press (AP)
Public nuisance laws in opioid cases give hope to both sides
Pharmacies have lost in a groundbreaking trial in Ohio over the toll of opioids, but there's no assurance the results will hold up on appeal
9:00AM ( 1 hour ago )
NASA launches spacecraft to test asteroid defense concept
NASA has launched a spacecraft on a mission to smash into an asteroid and test whether it would be possible to knock a speeding space rock off course if one were to threaten Earth
8:44AM ( 1 hour ago )
US GDP slowed sharply in Q3 but big rebound expected in Q4
The U.S. economy slowed to a modest annual rate of 2.1% in the October-December quarter, slightly better than first reported
8:37AM ( 1 hour ago )
AP Business
Asia stock markets decline amid inflation, oil price worries
Asian shares are mostly lower as worries about inflation set off expectations the U.S. Federal Reserve might accelerate its plans to raise interest rates
2:23AM ( 7 hours ago )
Elizabeth Holmes denies deception at her criminal trial
Biotechnology entrepreneur Elizabeth Holmes, a former billionaire accused of engineering a massive scam, expressed some remorse while on the witness stand Tuesday, but denied trying to conceal that her company’s blood-testing methods weren’t working as she had promised
12:06AM ( 10 hours ago )
Elizabeth Holmes expresses remorse in her criminal trial
Biotechnology entrepreneur Elizabeth Holmes, a former billionaire accused of engineering a massive scam, expressed some remorse while on the witness stand Tuesday, but denied trying to conceal that her company’s blood-testing methods weren’t working as she had promised
10:39PM ( 11 hours ago )
AP Business - Corporate News
Many environmentalists back Biden's move to tap oil reserve
Democrats and climate activists generally support President Joe Biden’s decision to release a record-setting 50 million barrels of oil from America’s strategic reserve, even as the action appeared to contradict Biden’s long-term goal to fight climate change
5:18AM ( 4 hours ago )
Global shares mixed amid inflation, oil price worries
Global shares are mixed as worries about inflation set off expectations the U.S. Federal Reserve might accelerate its plans to raise interest rates
4:15AM ( 5 hours ago )
EXPLAINER: What is the Strategic Petroleum Reserve?
President Joe Biden has ordered the release of 50 million barrels of oil from America’s strategic reserve
12:01AM ( 10 hours ago )
AP Business - Economy
Stocks start lower, oil prices rise despite release of crude
Stocks are off to a mostly lower start on Wall Street Tuesday as drops in several big technology companies offset gains in other parts of the market
9:43AM ( 1 day ago )
Turkish lira plunges 10% after Erdogan defends rate cuts
The Turkish currency has weakened by nearly 10% against the U.S. dollar, a day after President Recep Tayyip Erdogan insisted there would be no turning back from his unconventional policy of cutting interest rates despite high inflation
9:21AM ( 1 day ago )
World shares mostly lower as virus cases prompt lockdowns
Shares have opened lower in Europe after a mixed session in Asia, as countries impose lockdowns and other restrictions to fight flare-ups of coronavirus cases
4:13AM ( 1 day ago )
AP Business - Financial Markets
Judge OKs $5.4M settlement over Transamerica retirement plan
A federal judge has approved a $5.4 million settlement between Transamerica and its current and former employees who accused the company of offering several poor performing investments in its employee retirement plan
6:30PM ( 15 hours ago )
AstraZeneca opens research center as UK builds science hub
Prince Charles is praising Cambridge as a center of scientific collaboration as the pharmaceutical company AstraZeneca opened a 1 billion-pound ($1.34 billion) research center there on Tuesday
2:02PM ( 20 hours ago )
Merck asks EU regulator to authorize its COVID-19 pill
The European Medicines Agency says it has received a request from Merck to authorize its coronavirus antiviral, the first pill shown to treat COVID-19
12:34PM ( 21 hours ago )
AP Business - Industries
Thailand's DTAC and True to merge, pursue tech businesses
Thailand's DTAC and True Corp. plan a merger that they say will create an “equal partnership" for pursuing opportunities in the tech sector
9:42PM ( 1 day ago )
Rare first printing of US Constitution sells for record $43M
A rare first printing of the U.S. Constitution has sold at Sotheby’s in New York for $43.2 million, a record price for a document or book sold at auction
3:20PM ( 4 days ago )
Two Democratic senators oppose Powell as Fed chair
Two Senate Democrats said Friday they oppose the reappointment of Jerome Powell as chair of the Federal Reserve, as President Joe Biden is expected to announce within days who he will pick for the nation’s most powerful economic position
11:49AM ( 4 days ago )
AP Business - Financial Services
Interior head: Chaco protections ‘millennia in the making’
U.S. Interior Secretary Deb Haaland met with state and tribal leaders Monday in northwestern New Mexico where a battle has waged for decades over oil and gas development
6:31PM ( 1 day ago )
Dems confident on methane fee as budget bill moves to Senate
A huge social and environmental policy bill passed by House Democrats includes a plan to impose a fee on emissions of methane
2:04PM ( 1 day ago )
Coal-fired power plants to close after new wastewater rule
Climate change isn’t what’s driving some U.S. coal-fired power plants to shut down — instead it's the expense of stricter pollution controls on their wastewater
10:29AM ( 1 day ago )
AP Business - Utilities
German parties reach deal for government to end Merkel era
Three German parties have reached a deal to form a new government that will end the era of longtime Chancellor Angela Merkel
9:45AM ( 23 minutes ago )
Jury deliberations in Ahmaud Arbery death continue a 2nd day
The jury is deliberating for a second day in the trial of three white men charged with the killing of Ahmaud Arbery in coastal Georgia
9:44AM ( 24 minutes ago )
Biden nominates Young as budget director, Coloretti deputy
President Joe Biden is nominating Shalanda Young to head the Office of Management and Budget
9:36AM ( 33 minutes ago )
Biden nominates Shalanda Young as budget director
President Joe Biden is nominating Shalanda Young to head the Office of Management and Budget
9:29AM ( 39 minutes ago )
US jobless claims hit 52-year low after seasonal adjustments
The number of Americans applying for unemployment benefits plummeted last week to the lowest level in more than half a century, another sign that the U.S. job market is rebounding rapidly from last year’s coronavirus recession
9:24AM ( 44 minutes ago )