Wall Street's major indexes fell on Tuesday as uncertainty in Washington stemming from the dismissal of Secretary of State Rex Tillerson dragged down stocks across sectors. The influx of political news overshadowed earlier positive economic news earlier. The markets had opened higher after data showed U.S. consumer price growth slowed in February, an indication that an anticipated pickup in inflation probably will be only gradual.
The Dow Jones Industrial Average fell 0.42 percent and the S&P 500 lost 13.7 points, or 0.49 percent, to 2,769.32. The Nasdaq Composite dropped 0.82 percent, to 7,526.13. Financial stocks were weighed as U.S. Treasury yields fell in response to the CPI data and Tillerson's exit.
Tech and financial stocks were the biggest laggards among the S&P 500's 11 major sectors.
Shares of Microsoft Corp, Facebook and Alphabet fell between 1.3 percent and 2.3 percent.
Gold prices rise as US Dollar dives
Gold prices rose on Wednesday, hitting a one-week high as dollar continued to weaken on mounting concerns over U.S. protectionism. The dollar dived further against other currencies in Asia on Wednesday following news from the White House that hampered the investors’ confidence in the greenback, as U.S. president Donald Trump unexpectedly fired the Secretary of State Rex Tillerson and reportedly prepared to impose tariffs on China. The news followed the resignation of chief economic adviser Gary Cohn last week.The U.S. dollar index that tracks the greenback against a basket of six major currencies slumped 0.16 percent to 89.56, the lowest of this week.
A softening dollar makes bullion, which is often used as an alternative investment during times of political uncertainty, relatively cheaper for holders of other currencies.
Adidas sales growth and company plans to buy back shares for 3 billion
Adidas is getting a boost from the so-called athleisure trend, as well as high demand for sneakers specifically designed for cafes and clubs rather than running tracks and gyms.
The German company revenue jumped 12 percent in the fourth quarter, led by China and North America. The rebound comes after a slowdown in the third quarter, which sparked concerns and weighed on the shares. Revenue will also grow at a double-digit rate this year, at a forecast 10 percent when adjusted for currency swings.
Adidas also said net income from continuing operations will rise at a faster pace each year through 2020, and lifted its target for the operating margin to reach 11.5 percent then, from an earlier prediction of 11 percent. The CEO said he expects online sales, which are more profitable than those in stores, to reach as much as 30 percent of the total.
The company also announced it will be buying back its own shares for as much as 3 billion euros ($3.7 billion) over the next three years. The plan is to repurchase the shares through May 2021, with the first tranche starting in March and be worth around 1 billion euros. Thisdecision comes on top of an annual dividend of 30 percent to 50 percent of net income from continuing operations. The majority of the program will be financed through cash, with the intention of using some debt financing as well.
Disclaimer
This article was issued by Linda De Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt.The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.