Tags

  
  
 

Wall St. Ends Higher, Led by Bank Shares

Herbalife stock rose after the activist investor Carl Icahn, the company’s largest shareholder, said late Friday that he had increased his stake.

United States markets closed higher on Monday, and shares of banks and other financial companies led the way.

KEEPING SCORE The Dow Jones industrial average ended 0.58 percent higher and the Standard & Poor’s 500-stock index gained 0.52 percent. The Nasdaq composite index gained 0.26 percent.

FED FACTOR The dollar was trading higher against other major currencies after the chairwoman of the Federal Reserve, Janet L. Yellen, told a conference last week that the case for raising interest rates was strengthening given improvements in the economy. The prospect of higher rates sent the dollar higher against the Japanese yen and the euro.

“While the rate hike has not yet happened, markets have already begun to move and shift with the assumption of a hike,” said Margaret Yang Yan, a market analyst at CMC Markets Singapore.

RATE RELIEF Banks rose more than the rest of the market as traders anticipated that interest rates could move higher in the coming months. Banks have been hurt by historically low interest rates, which makes lending less profitable. Shares of Wells Fargo, the nation’s largest mortgage lender, rose 2.2 percent and Bank of America stock rose 0.3 percent.

STILL A BELIEVER Herbalife stock added 4.6 percent after the company’s largest shareholder, Carl Icahn, said late Friday he had bought an additional 2.3 million shares in the supplements and weight-loss products company, and denied that he ever gave an order to sell his $1 billion stake. A Wall Street Journal report earlier on Friday said that the investment bank Jefferies had been looking for buyers for Mr. Icahn’s position.

EUROPEAN MARKETS In Germany, the DAX fell 0.4 percent and in France, the CAC 40 lost 0.4 percent. The London Stock Exchange was closed for a summer bank holiday.

ASIA’S DAY The Nikkei 225 rose 2.3 percent in Japan, while in Hong Kong, the Hang Seng lost 0.4 percent. The Shanghai composite index edged down 0.01 percent in China. The Kospi fell 0.3 percent in South Korea.

ENERGY Benchmark United States crude oil fell 65 cents, to $46.99. It had risen 31 cents on Friday. Brent crude, used to price oil internationally, lost 65 cents, to $49.27.

CURRENCIES AND BONDS Bond prices rose. The yield on the 10-year Treasury note fell to 1.60 percent from 1.63 percent. The dollar rose to 102.30 yen from 101.86 yen late Friday. The euro fell to $1.1170 from $1.1183.

Continue reading the main story

Original Link...


Tags: None
0 comments
Report        

Read On:

Recent News