LAST CHANGE % CHG
DJIA 17511.34 -33.84 -0.19%
Nasdaq 5059.35 -32.35 -0.64%
S&P 500 2096.92 -5.52 -0.26%
Japan: Nikkei 225 20554.47 -65.79 -0.32%
Hang Seng 23474.97 -339.68 -1.43%
Shanghai Composite 3748.16 -245.5 -6.15%
S&P BSE Sensex 27831.54 -46.73 -0.17%
Australia: S&P/ASX 5303.1 -64.6 -1.20%
UK: FTSE 100 6526.29 -24.01 -0.37%
PRICE CHG YIELD
U.S. 2 Year 0/32 0.718
U.S. 5 Year -2/32 1.581
U.S. 10 Year -6/32 2.194
Australia 10 Year 12/32 2.748
China 10 Year 3/32 3.56
India 10 Year 0/32 7.899
Japan 10 Year 5/32 0.377
German 10 Year -6/32 0.649
LAST(MID) CHANGE
Australia $ (AUD/USD) 0.7342 -0.0029
Yen (USD/JPY) 124.41 0.01
S. Korean Won (USD/KRW) 1186.07 2.75
Chinese Yuan (USD/CNY) 6.3938 -0.0023
Euro (EUR/USD) 1.1026 -0.0051
WSJ Dollar Index 88.91 0.13
LAST CHANGE % CHG
Crude Oil 42.32 0.45 1.07%
Brent Crude 48.51 -0.23 -0.47%
Gold 1116.8 -1.6 -0.14%
MARKETS AT A GLANCE (Data as of approximately 5 p.m. ET)
SNAPSHOT:
U.S. stocks fell Tuesday, as a slump in consumer and energy shares snapped the Dow's three-session winning streak. Treasurys fell on a solid housing report. Oil prices rebounded on profit taking. Gold fell on a strengthening dollar.
OPENING CALL:
Confusion has surrounded China's currency moves this month. Ostensibly, the sharpest reduction in the value of the yuan since 1994 was meant to usher in a more market-based trading system, and as such was cautiously welcomed by the International Monetary Fund. In practice, the central bank is intervening to influence the currency's level against the dollar, just as it has done for decades.
At any rate, the ambiguity rattled stock markets and currencies around the world. At a time when deft management is needed more than ever, policy miscues and confusing explanations have sent worrying signals to investors that a steady leadership hand is being replaced by a panicked reflex to avoid an economic stall.
The dark view among investors is that the whole currency exercise was a desperate bid to revive growth by giving a hand to exporters, who benefit from a cheaper yuan. Some believe it shows China's economic czars are far more alarmed about faltering growth than they're letting on.
EQUITIES:
U.S. stocks fell, as a slump in consumer and energy shares snapped the Dow's three-session winning streak.
The Dow Jones Industrial Average fell 33.84 points, or 0.2%, to 17511.34.
The S&P 500 lost 5.52 points, or 0.3%, to 2096.92. The Nasdaq Composite dropped 32.35 points, or 0.6%, to 5059.35.
Shares of Wal-Mart Stores led the Dow lower, losing $2.43, or 3.4%, to $69.48, the lowest closing price since February 2013. The move shaved 16.2 points off the Dow. Earlier Tuesday, the retailer cut its earnings guidance for the year to between $4.40 and $4.70 a share from its previous forecast of $4.70 to $5.05 a share.
For the period ended July 31, Wal-Mart said profit fell to $3.48 billion, or $1.08 a share, from $4.09 billion, or $1.26 a share, a year earlier.
Shares of T.J. Maxx and Marshalls operator TJX Companies, however, soared 7.2% to a record settlement price of $76.78 after the company reported a 6.1% increase in quarterly earnings. Ross Stores Inc. shares rose $2.03, or 3.7%, to $56.53, a record closing price.
In other earnings news, Home Depot again lifted its outlook for the year, as the U.S. housing recovery helped drive better-than-expected sales growth in its latest quarter. Shares rose $3.10, or $2.6% to $122.80.
The housing market is one of the bright spots of the U.S. economy. Housing starts rose 0.2% in July from a month earlier to an annual rate of 1.21 million.
"Clearly, the optimism in Home Depot is tied to the housing market," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
Fresh anxieties about China's commitment to steadying the stock market sparked heavy losses in Shanghai Tuesday, despite signals of a housing recovery and the central bank's latest steps to keep cash from fleeing.
FOREX:
The dollar gained against the euro for a fourth straight session after solid U.S. housing numbers buoyed hopes of greater growth in the world's largest economy.
Still, the greenback remains in tight ranges against its peers as investors are making few large wagers ahead of U.S. inflation data for July and the release of minutes from the Federal Reserve's policy-making group on Wednesday. Both are expected to give investors more insights into the central bank's thinking about its timing for raising short-term interest rates for the first time in nearly a decade.
The dollar strengthened 0.5% against the common currency, with one euro buying $1.1031, on pace for its lowest closing level since Aug. 10. The Wall Street Journal Dollar Index, which compares the greenback against a basket of 16 currencies, ticked higher for a fourth day, rising 0.1% to 88.88.
Investors continue to wager that stronger U.S. data will move the Fed to raise borrowing costs from near zero, a move that would drive the dollar. Higher U.S. interest rates would boost assets denominated in dollars, making the currency more attractive to yield-hungry investors.
But inconsistent U.S. data, falling commodity prices and a recent move by the Chinese government to devalue its currency amid an economic slowdown have shaken investors' faith that the Fed will raise rates at its September meeting. Rising uncertainty has limited the dollar's gains, said Sireen Harajli, foreign exchange strategist at Mizuho Bank.
On Wednesday, investors will peruse last month's U.S. consumer-price index figures and Federal Open Market Committee minutes from its July meeting to gain a sense of whether the economy is improving enough to merit higher borrowing costs.
"Markets in general are a little bit on the cautious side ahead of CPI and FOMC minutes," Ms. Harajli said. "There is a fairly high level of uncertainty about the timing of the first Fed rate hike."
BONDS:
A solid housing report brightened the U.S. economic outlook, sapping demand for U.S. government debt.
In late-afternoon trading, the yield on the benchmark 10-year Treasury note was 2.196%, compared with 2.15% on Monday. Yields rise as prices fall.
The 10-year note's yield, a bedrock for global finance, is trading near its lowest level since the end of April. Trading volume was lighter than usual amid the typical summer lull, which could exaggerate price moves, traders said.
Housing starts hit the highest level since 2007, which came on the back of Monday's plunge in the manufacturing outlook in the New York region. The mixed releases add to investors' debate over whether the Federal Reserve may start raising benchmark short-term interest rates next month. Higher interest rates by the Fed make newly-minted bonds more attractive for buyers, hurting the value of outstanding bonds.
Yields on some short-term government debt securities, known as T-bills, rose to the highest level in five years. These yields, highly sensitive to changes in the Fed's interest rate policy outlook, have been climbing over the past month as Fed officials suggested a rate increase could come during the Sept 16-17 policy meeting.
The yield on the one-year T-bill hit 0.39% during Tuesday's session, the highest intraday level since April 2010. It was 0.377% in late-afternoon trading. The yield on a six-month T-bill also touched the highest level since 2010.
T-bill yields remain paltry and many investors don't expect them to rise significantly given the Fed's go-slow approach in raising short-term interest rates. Yet even a slight uptick is welcome by investors who have been struggling to boost returns as the Fed has held the policy rate near zero since December 2008.
"We are excited," said Kam Poon, portfolio manager specializing in short-term debt instruments at Aberdeen Asset Management, which has $483.3 billion assets under management. "The relief is on its way. The past decade has been very challenging" for cash investors.
COMMODITIES:
Oil prices rebounded as bargain buyers and profit takers outweighed some of the pressure from Chinese economic concerns and strong supply that have recently added to oil's fall.
West Texas Intermediate crude hit a six-year low just a day ago, causing many bearish traders to hesitate on selling more futures, analysts said. Crude has had such a large and steady collapse--down about 60% from 2014's highs--that many will use the opportunity of a new low to buy back contracts to cash out winning bets, analysts said. That can temporarily bid up prices.
Light, sweet crude for September delivery gained 75 cents, or 1.8%, to settle at $42.62 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 7 cents, or 0.1%, to $48.81 a barrel on ICE Futures Europe.
"Downside price momentum across the (oil) complex appears to be subsiding given the market's ability to accept the overnight plunge in Chinese equities with only limited selling," Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates, said in a note to clients.
Gold prices fell after upbeat U.S. economic data strengthened the dollar and fanned investor concerns about higher interest rates from the Federal Reserve.
TODAY'S HEADLINES:
Yum Brands Names New China CEO
Yum Brands, which receives about half of its sales from China, has named a new chief executive of its China operations.
EPA Proposes Rules Cutting Methane Emissions
(MORE TO FOLLOW) Dow Jones Newswires
August 18, 2015 17:30 ET (21:30 GMT)
The EPA proposed rules aimed at cutting methane emissions from the oil and natural-gas sector up to 45% over the next decade from 2012 levels.
Investment-Steering Case
J.P. Morgan Chase is in talks with the SEC to pay more than $150 million to resolve allegations it inappropriately steered private-banking clients to its own products without proper disclosures.
Wal-Mart's Outlook Cut Shows Struggle to Grow Sales
Wal-Mart warned that profits will miss its goals this year, an admission that the world's largest retailer is spending heavily to generate even modest sales growth.
Target Reaches Settlement With Visa Over 2013 Data Breach
Target reached an agreement with Visa to reimburse card issuers up to $67 million for costs incurred by the retailer's massive 2013 data breach.
Home Depot Lifts Guidance Amid Housing Recovery
Home Depot lifted its outlook for the year again, as a recovery in the U.S. housing market helped drive better-than-expected sales growth in its latest quarter.
Fitch Upgrades Some Greek Ratings
Credit rating firm Fitch has upgraded Greece's ratings, citing the country's improved financial outlook following last week's agreement with its creditors for additional aid.
U.S. Housing Starts Edge Up 0.2%
U. S. home building ticked up in July thanks to a surge in construction of single-family homes, the latest sign of momentum in the housing market.
Regulators Probe Volkswagen SUV's Takata Air-Bag Rupture
Federal regulators ordered Volkswagen to provide additional details on a Takata air bag that ruptured in a sport-utility vehicle in June, widening an ongoing government probe of a safety problem that has led to the largest automotive recall in U.S. history.
Citi to Sell Unit to SS&C Technologies
SS&C Technologies said it agreed to acquire Citigroup's alternative investor services business for $425 million, one of dozens of businesses the New York bank has moved to shed to make itself less sprawling.
RECENT DJ EXCLUSIVES:
Tencent Invests $50 Million in Messaging App Kik Interactive
Yuan's Devaluation Brings Losses for Some
Target, MasterCard Say They Are Working On Data Breach Settlement
Housing Builds Case for Rate Rise -- Heard on the Street
J.P. Morgan Expected to Settle With SEC on Investment-Steering Case
TODAY'S CALENDAR
(Times in GMT, followed by country and event)
2100 SKA Jul PPI
2245 NZ Q2 PPI
2245 NZ Q2 Capital Goods Price Index
2350 JPN Jul Provisional Trade Statistics for the Month
0030 AUS Jun Westpac-Melbourne Institute Indexes of Economic Activity
0100 AUS Aug Vacancy Report
0130 AUS Jul International Merchandise Imports
0400 MAL Jul CPI
0430 JPN Jun All Industry Index
0500 JPN Jun Indexes of Business Conditions - Revision
0530 JPN Jul Tokyo area department store sales
0530 JPN Jul Nationwide department store sales
0600 JPN Jul Revised Machine Tool Orders
0800 EU Jun Euro area balance of payments
0900 EU Jun Construction output
0900 ITA Jun Balance of Payments
1100 US 08/14 MBA Weekly Mortgage Applications Survey
1230 US Jul Real Earnings
1230 US Jul CPI
1430 US 08/14 EIA Weekly Petroleum Status Report
1800 US Federal Open Market Committee meeting minutes published
2301 UK Jul UK monthly automotive manufacturing figures
(END) Dow Jones Newswires
August 18, 2015 17:30 ET (21:30 GMT)
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