S&P 500, Nasdaq move higher after mixed earnings
In early trading on Thursday, the S&P 500 gained 10.62 points, or 0.17 per cent, to 6,369.85 and the Nasdaq Composite gained 66.26 points, or 0.33 per cent, to 21,086.27.
Alphabet rose 1.9 per cent after the Google parent raised its 2025 capital spending forecast by $US10 billion ($A15 billion) to $US85 billion ($A129 billion), shrugging off trade jitters, while electric vehicle maker Tesla tumbled 7.6 per cent as CEO Elon Musk warned of "a few rough quarters" due to cuts in EV incentives.
Losses in UnitedHealth, IBM and Honeywell weighed on the blue-chip Dow, which fell 0.6 per cent -though it remained close to its December 4 record high.
UnitedHealth lost 2.3 per cent. The insurer revealed it's cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations.
IBM sank 9.5 per cent as its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division.
Honeywell, meanwhile, dipped 5.2 per cent despite topping Wall Street's expectations and raising its annual outlook.
On the trade front, an EU spokesperson hinted that a deal was "within reach"—one that could slap a broad 15 per cent tariff on imports across the 27-member bloc, according to diplomats.
Meanwhile, fresh signs of progress emerged after President Donald Trump struck an agreement with Japan, slicing tariffs on Japanese goods to 15 per cent. China and South Korea are also scrambling to clinch their own deals and sidestep Trump's hefty duties.
Yet, some of Wall Street's heavyweights were starting to feel the sting of Trump's sweeping tariffs, injecting a dose of caution into the market mood.
American Airlines fell 9.2 per cent after forecasting a bigger-than-expected third-quarter loss, hurt by sluggish domestic travel demand.
Shares of ServiceNow rose 5.5 per cent after the software firm raised its annual subscription revenue forecast.
Markets were also monitoring developments after the White House surprised investors that Trump - fresh from stepping up his criticism of Federal Reserve Chair Jerome Powell - would pay a visit to the US central bank's headquarters later in the day.
With the Fed widely expected to hold rates steady at next week's meeting, traders are now pricing in a 62 per cent chance of a September rate cut, according to CME's FedWatch tool.
The latest Labour Department report showed weekly jobless claims fell to 217,000—well below estimates—signalling continued resilience in the US job market.
"It (data) is a good guide for the health of the economy and this week's jobless claims show that the economy is ticking along just nicely," said Neil Birrell, chief investment officer at Premier Miton Investors.
US business activity gained momentum in July, but companies hiked prices on goods and services—a move that's fuelling economists' predictions of faster inflation in the months ahead, largely driven by rising import tariffs
Declining issues outnumbered advancers by a 2.05-to-1 ratio on the NYSE and by a 1.63-to-1 ratio on the Nasdaq.
The S&P 500 posted 21 new 52-week highs and two new lows, while the Nasdaq Composite recorded 40 new highs and 13 new lows.
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ABC News
12 minutes ago
- ABC News
Taiwan to push back US stopover as US–China trade talks continue, sources say
Taiwan's President Lai Ching-te is set to delay a diplomatically sensitive trip his team had floated to the Trump administration for August that would have included stops in the United States, according to multiple people familiar with the matter. Mr Lai is yet to visit the US since President Donald Trump took office, but such a trip was bound to infuriate Beijing at a time when the US president was trying to negotiate a deal on trade with China, according to Reuters. China claims democratically governed Taiwan as its own territory, and regularly denounces any shows of support for Taipei from Washington. Taiwan's government rejects Beijing's sovereignty claims and says only the island's people can decide their future The trip, which would have included stopping in New York and Dallas on the way to and from Latin America, was never formally confirmed but had been discussed with the governments involved, according to a person familiar with the matter. Mr Lai was set to delay the trip until at least later this year for a handful of reasons, including the need to organise his government's response to extreme weather in Taiwan, one of the sources told Reuters. Two sources spoken to by Reuters also pinned the delay on the ongoing US tariff talks with Taipei and Beijing, respectively. The Financial Times reported that, according to multiple sources, the US told Mr Lai he could not visit New York on the way, and that was the reason the trip was delayed. China faces an August 12 deadline to reach a durable tariff agreement with the Trump administration, after weeks of escalating tit-for-tat tariffs and a blockade on rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels, which would amount to a bilateral trade embargo. The White House and China's embassy in Washington did not immediately respond to a request for comment on Taiwan's delayed trip to the US, while Taiwan's Presidential Office was not immediately available for comment late on Monday night. "There's no such thing as cancelling the trip," said a person with direct knowledge of the matter, who said stopovers were likely to include Texas and another city in the US mainland. "In fact, further arrangements for the trip will be made later this year." Earlier on Monday, Taiwan's Presidential Office spokesperson Karen Kuo said once the president's overseas visit itinerary was finalised, it would be announced to the public in a timely manner. "However, considering the recent typhoon disaster recovery efforts in southern Taiwan, the US–Taiwan reciprocal tariff measures and regional developments, the president currently has no plans for overseas visits in the near future," Ms Kuo said. The decision comes as Mr Trump has tried to lower tensions with Chinese President Xi Jinping and potentially have a summit in Asia with him this autumn. China's Foreign Ministry has previously condemned what it called "sneaky visits" to the US by Taiwanese leaders under any pretext. They said the US must understand how sensitive the Taiwan issue was and act with the utmost caution. Yesterday, top US and Chinese economic officials huddled in Stockholm, Sweden for more than 5 hours to resolve longstanding economic disputes and extend a truce by three months. Negotiators from both sides were seen exiting the office around 8pm, local time, and did not stop to speak with reporters. Tariff discussions between the US and China are expected to resume today. US trade representative Jamieson Greer said he did not expect an "enormous breakthrough" today. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Mr Trump's biggest trade deal yet with the European Union, for a 15 per cent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely, and would facilitate a potential meeting between both leaders in late October or early November. So far, the talks have not delved into broader economic issues. Previous trade talks in Geneva and London focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China, and the US's stoppage of goods including Nvidia's advanced chips. They included US complaints that China's state-led, export-driven model was flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods sought to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. Analysts say the US-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. Reuters
Perth Now
12 minutes ago
- Perth Now
Asian shares slip as investors remember drag of tariffs
Asian shares have eased while the euro nursed its losses as investors pondered the downside of the US-EU trade deal and the reality that punishing tariffs were here to stay, with unwelcome implications for growth and inflation. The initial relief over Europe's 15 per cent levy quickly soured when set against the one per cent to two per cent that stood before President Donald Trump took office. Trump flagged a "world tariff" rate of 15 per cent to 20 per cent on all trading partners that were not negotiating a deal, among the highest rates since the Great Depression of the 1930s. "While the worst case scenario was averted, the implied EU tariff increase from one per cent in January is a significant tax increase on EU exports," wrote economists from JPMorgan in a note. "This is a very big shock that unwinds a century of US leadership in global free trade," they warned. "While we no longer see a US recession as our baseline from this shock, the risk is still elevated at 40 per cent." A further risk to world growth came from a sudden spike in oil prices after Trump threatened a new deadline of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face tougher sanctions on oil exports. Brent edged up 0.1 per cent to $US70.10 a barrel, having climbed 2.3 per cent on Monday, while US crude held at $US66.73. The air of caution saw MSCI's broadest index of Asia-Pacific shares outside Japan slip 0.7 per cent. Japan's Nikkei index eased 0.8 per cent, while Chinese blue chips fell 0.1 per cent. European shares steadied after Monday's sell-off. EUROSTOXX 50 futures edged up 0.2 per cent, while FTSE futures and DAX futures both added 0.1 per cent. The euro was flat at $US1.1592, after falling 1.3 per cent overnight in the largest drop since mid-May. It now has chart support at $US1.1556. The US dollar index was up at 98.674, after the rush out of short dollar positions lifted it one per cent overnight, while it touched a one-week high on the yen at 148.63. Wall Street held firm on hopes for upbeat results from mega caps this week that include Apple, Microsoft and Amazon. S&P 500 futures nudged up 0.1 per cent, while Nasdaq futures added 0.2 per cent. Yields on 10-year Treasuries held at 4.408 per cent having crept higher on Monday as markets braced for another steady decision on interest rates from the Federal Reserve. Futures imply a 97 per cent chance the Fed will keep rates at 4.25 per cent-4.5 per cent at its meeting on Wednesday and reiterate concerns that tariffs will push inflation higher in the short term. Analysts also assume one, or maybe two, Fed officials will dissent in favour of a cut and supporting wagers for a move in September. The odds could change depending on a slew of US data this week including gross domestic product for the second quarter where growth is seen rebounding to an annualised 2.4 per cent, after a 0.5 per cent contraction in the first quarter. Figures on job openings are due later on Tuesday that will help refine forecasts for the crucial payrolls report on Friday. Canada's central bank also meets on Wednesday and again is widely expected to hold rates at 2.75 per cent as it waits to see how trade talks with the US wash out. In commodity markets, prices for copper and iron ore were under pressure while gold idled at $US3,316 an ounce.
SBS Australia
12 minutes ago
- SBS Australia
SBS News in Easy English 29 July 2025
The United Nations Secretary General has urged leaders to support a two-state solution to the Israeli-Palestinian conflict at an international conference lead by Saudi Arabia and France. Fifty ministers have gathered at the U-N for the three-day conference in New York. Both Israel and the United States have refused to participate in the meeting, which is being attended by representatives of 125 countries. UN Secretary General Antonio Guterres says the solution must be reached urgently to meet the needs of both parties. "This conflict cannot be managed. It must be resolved. We cannot wait for perfect conditions. We must create them. We cannot defer peace efforts until suffering becomes unbearable. We must act before it is too late." Prime Minister Anthony Albanese says he remains focused on easing cost-of-living pressures, highlighting a planned cut to prescription medicine prices. The government is introducing a bill today to lower the Pharmaceutical Benefits Scheme co-payment cap from $31.60 to $25. With opposition support, the bill is expected to pass quickly, and the changes are set to take effect from the 1st of January 2026. United States President Donald Trump has given Russia 10 to 12 days to reach a peace deal with Ukraine, sharply reducing his original 50-day deadline. The U-S President says there's no reason to wait the full term, considering the lack of progress. Mr Trump says Russia will face further sanctions if no peace deal with Ukraine is reached. "So what I'm doing is we're going to do secondary sanctions, unless we make a deal. And we might make a deal. I don't know. I don't know. You don't know. We've done so many peace deals. This is the one I started out with. And you know, this Putin called me. He wanted to know if I could help him with Iran. I said, no, I don't need your help with Iran, I need your help with Russia. And so that's the one deal that continues to linger." Mr Trump says he's had several promising talks with President Vladimir Putin, but each was followed by renewed violence between Russia and Ukraine. There have been two separate mass shootings in the United States. In New York, a gunman opened fire inside a Manhattan skyscraper housing financial firms and the N-F-L headquarters. The shooter, reportedly wearing a bulletproof vest and carrying an A-R-style rifle, critically injured a police officer and a bystander before taking his own life. Australian backstroke star Kaylee McKeown is to face arch-rival Regan Smith in the 100 metre backstroke final at the World Championships in Singapore. McKeown, a two-time Olympic champion, qualified second-fastest behind the American, who holds the current world record of 57.13 second, just ahead of McKeown's former mark of 57.33. While their showdown promises to be a highlight, McKeown says she's focused on enjoying the race rather than adopting a win-at-all-costs mindset.
