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Global Stocks Mixed on Wall St. Tumble 05/01 04:53
Britain's index opened higher Wednesday while Japan and Australian markets
fell, with most of the markets closed for a holiday. Meanwhile, stocks in the
United States closed out their worst month since September.
HONG KONG (AP) -- Britain's index opened higher Wednesday while Japan and
Australian markets fell, with most of the markets closed for a holiday.
Meanwhile, stocks in the United States closed out their worst month since
September.
U.S. shares were set to drift lower as Dow futures lost 0.1% and S&P 500
futures dipped 0.3%.
London's FTSE 100 opened higher Wednesday with the index up 0.2% to 8,159.46
in early trading. Investors are waiting for the U.S. Federal Reserve's interest
rate decision later in the day.
Tokyo's Nikkei 225 index lost 0.3%, down to 38,274.05 after the country's
factory activity experienced a milder shrink in April, as the manufacturing
purchasing managers' index from au Jibun Bank rose to 49.6 in April from 48.2
in March. A PMI reading under 50 represents a contraction, and a reading of 50
indicates no change.
The yen continues to struggle. On Wednesday, the U.S. dollar rose to 157.97
Japanese yen from 157.74 yen.
Australia's S&P/ASX 200 dipped 1.2% to 7,569.90. Other markets were closed
due to the Labor Day holiday.
On Tuesday, the S&P 500 tumbled 1.6% to cement its first losing month in the
last six, and ended at 5,035.69. The Dow Jones Industrial Average dropped 1.5%
to 37,815.92, and the Nasdaq composite lost 2% to 15,657.82.
Stocks began sinking as soon as trading began, after a report showed U.S.
workers won bigger gains in wages and benefits than expected during the first
three months of the year. While that's good news for workers and the latest
signal of a solid job market, it feeds into worries that upward pressure
remains on inflation.
It followed a string of reports this year that have shown inflation remains
stubbornly high. That's caused traders to largely give up on hopes that the
Federal Reserve will deliver multiple cuts to interest rates this year. And
that in turn has sent Treasury yields jumping in the bond market, which has
cranked up the pressure on stocks.
No one expects the Federal Reserve to change its main interest rate at this
meeting. But traders are anxious about what Fed Chair Jerome Powell may say
about the rest of the year.
GE Healthcare Technologies tumbled 14.3% after it reported weaker results
and revenue for the latest quarter than analysts expected. F5 dropped 9.2%
despite reporting a better profit than expected.
McDonald's slipped 0.2% after its profit for the latest quarter came up just
shy of analysts' expectations. It was hurt by weakening sales trends at its
franchised stores overseas, in part by boycotts from Muslim-majority markets
over the company's perceived support of Israel.
Helping to keep the market's losses in check was 3M, which rose 4.7% after
reporting stronger results and revenue than forecast. Eli Lilly climbed 6%
after turning in a better profit than expected on strong sales of its Mounjaro
and Zepbound drugs for diabetes and obesity. It also raised its forecasts for
revenue and profit for the full year.
Stocks of cannabis companies also soared after The Associated Press reported
the U.S. Drug Enforcement Administration will move to reclassify marijuana as a
less-dangerous drug in a historic shift. Cannabis producer Tilray Brands jumped
39.5%.
The earnings reporting season has largely been better than expected so far.
Not only have the tech companies that dominate Wall Street done well, so have
companies across a range of industries.
In the bond market, the yield on the 10-year Treasury rose to 4.69%
Wednesday from 4.61%.
Benchmark U.S. crude fell $1.04 to $80.89 a barrel. Brent crude, the
international standard, lost 92 cents to $85.41 a barrel.
In currency trading, the euro cost $1.0667, up from $1.0663.
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