The New York Times - 06.08.2019

B2 N THE NEW YORK TIMES BUSINESSTUESDAY, AUGUST 6, 2019

Months

36 2510 30

Years

240

250

260

270

’16 ’18

400

500

600

700 thousand

’16 ’18

80

100

120

’16 ’18

3

4

5

6%

’16 ’18

0

200

400

600

$800 a bushel

’10 ’12 ’14 ’16 ’18

0

50

$100 a barrel

’10 ’12 ’14 ’16 ’18

0

1

2

3

4

5

6%

’10 ’15 ’19

90

100

110

120

’14 ’15 ’16 ’17 ’18 ’19

1.0

1.1

1.2

1.3

$1.4

’14 ’15 ’16 ’17 ’18 ’19

0

1

2

3%

0

1

2

3%

’18 ’19

0.0

–0.5

–1.0

–1.5

–2.0

–2.5

–3.0

–3.5

–4.0

Real estate %

Consumer staples

Utilities

Financials

Health care

Industrials

Communication services

Consumer discretionary

Materials

Energy

Technology

+0.8

+0.1

+0.1

–0.2

–0.2

–0.6

–0.8

–0.9

–1.2

–1.3

–1.7

1. Vanguard Total Intl Bd Idx Admiral(VTABX) +10.1% +4.6% $51.7


2. DFA Five-Year Global Fixed-Income I(DFGBX) +5.0 +2.3 15.4


3. American Funds Capital World Bond A(CWBFX) +7.3 +1.5 5.7


4. DFA Two-Year Global Fixed-Income I(DFGFX) +3.3 +1.3 5.6


5. T. Rowe Price Emerging Markets Bond(PREMX) +7.3 +4.3 4.7


6. Fidelity New Markets Income(FNMIX) +5.2 +4.0 4.6


7. Templeton Global Total Return Adv(TTRZX) +2.1 +2.0 3.4


8. Hartford World Bond I(HWDIX) +6.7 +2.6 2.3


9. Invesco Oppenheimer International Bd Y(OIBYX) +3.2 +2.2 1.9


10. PIMCO Emerging Markets Bond Instl(PEBIX) +10.0 +4.5 1.8


11. AMD (AMD) $27.99 –4.9% $73.0


12. GE (GE) 9.66 –3.4 69.0


13. Apple (AAPL) 193.34 –5.2 51.8


14. Ford Motor (F) 9.23 –0.5 47.6


15. Pfizer (PFE) 36.96 –2.7 43.3


16. Microsoft (MSFT) 132.21 –3.4 41.7


17. Intel (INTC) 46.97 –3.5 38.4


18. AT&T (T) 33.49 –2.0 35.9


19. Micron Tech (MU) 41.94 –4.9 34.7


20. Cisco System (CSCO) 51.37 –3.5 29.8


21. Nektar (NKTR) $28.80 –7.4%


22. Wynn Resorts (WYNN) 111.10 –7.2


23. Fluor (FLR) 21.09 –7.0


24. Nvidia (NVDA) 150.79 –6.5


25. Tapestry (TPR) 27.84 –6.4


26. E*TRADE Fina (ETFC) 43.20 –6.3


27. Diamondback (FANG) 91.45 –6.2


28. Fortinet (FTNT) 80.86 –6.0


29. Activision (ATVI) 46.10 –6.0


30. Marathn Oil (MRO) 12.50 –5.9


31. Abiomed (ABMD) $204.53 +2.0%


32. Jacobs US (JEC) 81.00 +1.7


33. Linde Pu (LIN) 190.63 +1.6


34. Newmont Goldc (NEM) 37.42 +1.4


35. WEC Energy Gr (WEC) 87.03 +0.5


36. Raytheon (RTN) 180.15 +0.5


37. Northrop Grum (NOC) 342.81 +0.5


38. MarketAxess (MKTX) 341.47 +0.3


39. Lyondell (LYB) 76.31 +0.2


40. Welltower (WELL) 84.84 +0.1

+ 5%

0%

• 5%

–10%

2,600

2,700

2,800

2,900

3,000

3,100

June July

+ 5%

0%

• 5%

–10%

7,200

7,400

7,600

7,800

8,000

8,200

8,400

8,600

June July

+ 5%

0%

• 5%

–10%

24,000

25,000

26,000

27,000

28,000

June July

2844.74 3.0% 7726.04 3.5% 25717.74 2.9%

Shanghai –1.6%

Tok yo –1.7%

Frankfurt –1.8%

London –2.5%

New York –3.0%

$1 = 105.96

$1.1195 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

International bonds

S&P 500 Nasdaq Composite Index Dow Jones industrials

Best performers Worst performers Most active

Sector performance

Bonds

Yield curve

Key rates

Borrowing rate

Crude oil

Corn

Savings rate

yen

10-year Treas.

YESTERDAY

1-YE AR AGO

2-year Treas. Fed Funds

Currencies Consumer rates Commodities Economy

How stock markets fared yesterday in Asia ... ... in Europe ... and in the Americas.

CLOSE

S&P 500 SECTORS

CLOSE CLOSE 1 YR 5 YRS

TOTAL RETURNASSETSTOTAL

CHANGE CHANGE CHANGE IN MIL. IN BIL.

VOLUME

POWERED BY

What Happened in Stock Markets Yesterday

What Is Happening in Other Markets and the Economy

Major stock market indexes

6 p.m. E.S.T. 8 10 12 a.m. 2 4 6 a.m. 8 10 12 p.m. 2 4 6 p.m.

Maturity

1-year CDs

30-year fixed mortgages

S&P 500 COMPANIES S&P 500 COMPANIES S&P 500 COMPANIES

Source: Morningstar

1 euro =

The Digest

China introduced a powerful

weapon to the trade war on Mon-

day, letting its currency weaken

sharply in a move that left finan-

cial markets lurching and invest-

ors worried about how the wors-

ening hostilities between Beijing

and Washington would affect cor-

porate profits and the already

slowing pace of global growth.

On Wall Street, stocks experi-

enced their steepest drop of the

year, conclusively ending a period

of steady trading during which the

market notched record after

record.

The recent calm was first punc-

tured last week by President

Trump’s threat to impose new tar-

iffs on $300 billion of imports from

China. But it was Beijing’s deci-

sion to allow its currency to cross

the psychologically important

barrier of 7 per dollar that pushed

investors to abandon any linger-

ing hope that a trade truce —

worked out in a face-to-face meet-

ing between Mr. Trump and Xi Jin-

ping, China’s leader, a little over a

month ago — would hold.

“That has just totally disinte-

grated,” said Ryan Detrick, senior

market strategist at LPL Finan-

cial. “Now China is just clearly fir-

ing back, and that has people un-

comfortable.”

The S&P 500 fell nearly 3 per-

cent on Monday, the benchmark

index’s sixth straight decline. The

sell-off has lopped a significant

chunk off this year’s market gains.

The S&P 500 was up 20.7 percent

for the year as recently as July 26.

After Monday, investors were up

13.5 percent.

The rout on Wall Street followed

an overnight sell-off in Asian and

European markets, prompted by

a drop of more than 1 percent

against the dollar for China’s

tightly controlled currency, the

renminbi.

A move of that magnitude is

considered quite large in the cur-

rency markets. But it was espe-

cially notable for the renminbi,

which China has kept from cross-

ing 7 for more than a decade. The

decision to let the currency’s val-

ue fall was widely viewed as a sig-

nal that Beijing was girding for a

protracted battle over trade, tech-

nology and economic hegemony

with the United States.

The People’s Bank of China, in a

bluntly worded statement on

Monday, tied the currency’s dip to

Mr. Trump’s “unilateralism and

trade protectionism measures

and the imposition of increased

tariffs on China.”

Also on Monday, the state-run

Xinhua News Agency reported

that Chinese enterprises had

stopped making new purchases of

American agricultural products,

citing Mr. Trump’s plan to further

increase tariffs on China as a “se-

rious violation” of the consensus

reached when he and Mr. Xi met in

Osaka, Japan, in June.

The apparent escalation in the

dispute between Washington and

Beijing hammered share values

across markets. Prices for com-

modities like copper, lead and

iron, which are typically linked to

the outlook for Chinese and global

growth, fell.

Signs of economic softness also

pushed investors to buy up gov-

ernment bonds, raising prices and

sharply driving down yields,

which move in the opposite direc-

tion. On Monday, the yield on the

10-year Treasury note hovered

near 1.74 percent.

The decline in long-term gov-

ernment bond yields suggests

that investors are again down-

grading their views of the econ-

omy.

It is widely accepted that the

battle between the world’s two

largest economies has slowed the

global economy, but investors are

increasingly worried that it could

begin to weigh on the less trade-

dependent American domestic

economy, which is experiencing

its longest-ever expansion.

On Monday, the Russell 2000 in-

dex of small stocks, weighted to-

ward more of the kind of domesti-

cally focused companies that had

been insulated from the trade bat-

tle, was also battered, dropping 3

percent.

The pain was worse for compa-

nies with particularly close ties to

China. Wynn Resorts, which relies

heavily on casino operations in

Macau that cater to gamblers

from mainland China, was among

the worst-performing stocks in

the S&P 500, tumbling 7.2 percent.

The electronics retailer Best Buy,

which gets many of the products it

sells from China, dropped 3.5 per-

cent.

Technology stocks made up the

hardest hit section of the market,

falling roughly 4 percent. The tech

giants Microsoft (3.4 percent) and

Apple (5.2 percent) both dropped

sharply.

Selling was also heavy in shares

of computer chip makers, which

generate significant revenue from

sales to technology manufactur-

ers based in mainland China.

Nvidia fell 6.5 percent, and Micron

Technology dropped more than

4.9 percent. An index of semicon-

ductor stocks fell 4.4 percent.

Shares Fall as China Raises Trade Tensions

The S&P 500 Index

Position of the S&P 500 index at 1-minute intervals on Monday.

Source: Refinitiv THE NEW YORK

2

10 a.m. Noon 2 p.m. 4 p.m.

2

2

2

2

Previous close

2,932.05

2

STOCKS & BONDS

By MATT PHILLIPS

10-YEAR TREASURY YIELD

1.72%

–0.12%

CRUDE OIL (U.S.)

$54.69

–$0.97

S&P 500 INDEX

–2.98%

2,844.74

DOW JONES INDUSTRIALS

–2.90%

25,717.74

NASDAQ COMPOSITE INDEX

–3.47%

7,726.04

GOLD (N.Y.)

$1,464.60

+$19.00

MERGERS & ACQUISITIONS

Fox to Buy a Lender

For $397 Million

Credible Labs, a San Francisco-
based consumer lender listed on
the Australian Stock Exchange,
said Monday that it had agreed to
be bought out by the broadcaster
Fox Corporation for 585 million
Australian dollars ($397 million).
Under the terms of the deal,
Credible Labs said its sharehold-
ers would receive 2.21 Australian
dollars ($1.50) in cash per CHESS
depository interest, a premium of

7 percent to its last close of 2.06,

which represents 55.25 Australian

dollars ($37.34) per share of com-

mon stock in Credible.

The chief executive and chair-

man of Fox, Lachlan Murdoch,

said in a separate announcement

that the acquisition had “tremen-

dous synergy” with Fox Business

and Fox Television Stations, as

Credible would benefit from ac-

cess to the broadcast and enter-

tainment giant’s huge audience.

Credible’s board said it unani-

mously backed the proposal,

which is subject to certain approv-

als from the Australian Stock Ex-

change. REUTERS

RETAIL

Tesco to Cut 4,500 Jobs

From Midsize Stores

The British supermarket chain
Tesco is cutting about 4,500 jobs
from its Metro stores to improve
the efficiency of a format that was
intended for weekly visits but is
increasingly being used by
customers every day.
Tesco, both the biggest retailer
and largest private sector employ-
er in Britain, said the changes in
its 153 Metro stores — medium-
size shops found on Britain’s shop-
ping streets and by railway sta-
tions — would allow it to shift
stock more quickly to the shelves
and cut the time it was held in the
store room.
The retailer, which had a 27.2
percent market share in the latest
data from sector researcher Kan-

tar, has largely outperformed its

rivals, Sainsbury’s, Asda and

Morrisons, over the past year.

However, the whole industry re-

mains under pressure from Ger-

man challengers Aldi and Lidl,

prompting Tesco to search for

ways to maximize profit growth.

REUTERS

ECONOMIC INDICATORS

Service Sector Growth

At Slowest Since 2016

The pace of expansion for U.S.

services companies fell to its slow-

est pace in nearly three years, as

gauges of business activity and

new orders weakened.

The Institute for Supply Man-

agement, an association of pur-

chasing managers, said Monday

that its nonmanufacturing index

fell to 53.7 from 55.1 in June. The

July measure was the weakest

since August 2016. Readings

above 50 signal growth, so the in-

dex suggests that overall growth

will continue but has downshifted.

The services sector accounts for

the bulk of U.S. jobs and economic

activity.

The index’s measures of busi-

ness activity and new orders de-

creased, though both still pointed

to growth. The hiring measure im-

proved.

“We’re seeing this easing, this

slowing,” said Anthony Nieves,

chair of the I.S.M.’s nonmanufac-

turing business survey commit-

tee. He said that a slowdown can

occur during the summer months,

but the survey indicates that the

decade-plus expansion will con-

tinue. (AP)

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