US stocks edge mixed (Lead)

January 25th, 2012 - 5:53 am ICT by IANS  

New York, Jan 25 (IANS) US stocks edged narrowly mixed Tuesday with the S&P; snaping a 5-day winning streak, amid failed Greek negotiations and mixed earnings.

European Union ministers Tuesday rejected proposals by private Greek debt holders of a 65 to 70 percent write-down of the country’s debt. The news added to concerns about the European debt crisis, Xinhua reported.

Meanwhile, Christine Lagarde, managing director of International Monetary Fund (IMF), said that the organization needed an additional $500 billion to help resolve the European debt crisis. However the source of the money remained unclear.

On the earnings front, US chemical company Dupont reported better-than-expected earnings in the fourth quarter last year, but its revenue missed expectations. Telecommunications giant Verizon said that its non-cash pension caused its fourth quarter loss.

McDonald’s dropped more than 2 percent after the fast food giant said that its fourth-quarter profit climbed 11 percent but projected that 2012 earnings per share may be impacted 16 cents to 18 cents on foreign currency translation, primarily driven by a weaker Euro.

The Travelers Companies, another Dow component reporting earnings Tuesday, tumbled more than 3.5 percent, after the insurance company posted earnings that missed market expectations.

Both Apple and Yahoo will announce its fourth-quarter warnings after the market closes, which may help set the tone for Wednesday’s trading.

Meanwhile, investors are paying close attention to the Federal Reserve’s two-day monthly monetary meeting, beginning Tuesday. Investors expect the Fed to keep its monetary policy unchanged at this meeting.

The Dow Jones Industrial Average lost 33.07 points, or 0.26 percent, to 12,675.75. The Standard & Poor’s 500 Index dipped 1.37 points, or 0.10 percent, to 1,314.63. The Nasdaq Composite Index added 2.47 points, or 0.09 percent, to 2,786.64.

The CBOE Volatility Index, generally considered as a gauge of fear in the market, rose near 19.

On other markets, the US dollar traded mixed against major currencies in late New York trading Tuesday as Greek debt talks worried investors.

The dollar index gained 0.09 percent to 79.86.

As for oil, oil slipped Tuesday, its fourth loss in last five sessions, as investors were cautiously eyeing on the key talks between Greece and its private creditors.

Light, sweet crude for March delivery fell 63 cents, or 0.6 percent to settle at $98.95 a barrel on the New York Mercantile Exchange.

In London, Brent crude for March delivery also dipped and last traded around $110.2 a barrel.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe