The Canadian Press - ONLINE EDITION

Stocks stabilize; Molson Coors jumps on earnings while Sprint drops on merger news

  • Print
Specialist Wingszi Chiang, left, works at her post on the floor of the New York Stock Exchange Wednesday, Aug. 6, 2014. U.S. stocks are little changed in early trading Wednesday as investors worry about escalating tensions between Russia and the Ukraine. Investors were also holding back after two larger merger bids were pulled. (AP Photo/Richard Drew)

Enlarge Image

Specialist Wingszi Chiang, left, works at her post on the floor of the New York Stock Exchange Wednesday, Aug. 6, 2014. U.S. stocks are little changed in early trading Wednesday as investors worry about escalating tensions between Russia and the Ukraine. Investors were also holding back after two larger merger bids were pulled. (AP Photo/Richard Drew)

NEW YORK, N.Y. - U.S. stocks stabilized on Wednesday after earnings from a major beer brewer helped the market stem its recent declines.

The stock market ended the day little changed after a sizable drop a day earlier, when Russia massed troops near its border with Ukraine.

Molson Coors was the biggest gainer in the Standard & Poor's 500 index after the company reported better-than-forecast earnings. Rupert Murdoch's 21st Century Fox rose after the company said it was dropping a bid to acquire Time Warner, while Sprint plunged after it abandoned its effort to acquire T-Mobile US.

The stock market has become more volatile in recent weeks, and slumped last month to its first monthly decline since January. Investors are weighing signs that the U.S. economy is strengthening against the threat of an escalating conflict in Ukraine, as well as the prospect of the Federal Reserve raising its benchmark interest rate.

"On the one hand the U.S. economy is really starting to look good, but on the other hand, the markets are certainly jittery about what's going on in Ukraine and Russia," said Anastasia Amoroso, Global Markets Strategist at J.P. Morgan Funds.

The S&P 500 rose a fraction of a point, or less than 0.1 per cent, to 1,920.24. The index lost 18 points, or 1 per cent, on Tuesday. The index is still up on the year, but has dropped 3.5 per cent from its record close set July 24.

The Dow Jones industrial average rose 13.87 points, or 0.1 per cent, to 16,443.34. The Nasdaq composite rose 2.2 points, or 0.1 per cent, to 4,355.05.

Molson Coors rose $3.87, or 5.8 per cent, to $71.08 after the company said its second-quarter profit rose 9 per cent as better pricing offset a global decline in the volume of beer sales.

As well as watching earnings, investors were looking at two merger bids that unraveled.

Sprint plunged $1.38, or 19 per cent, to $5.90 after the company said it was abandoning its pursuit of T-Mobile US. Sprint would have struggled to convince regulators to approve a merger of the No. 3 and No. 4 cellphone carriers in the nation, according to The Wall Street Journal. Sprint is also replacing its longtime CEO.

Time Warner fell $10.95, or 12.9 per cent, to $74.24 after Rupert Murdoch's 21st Century Fox said it was dropping its attempt to take over the company. The deal would have combined two of the world's biggest media conglomerates. 21st Century Fox rose $1.03, or 3.3 per cent, to $32.33.

Stocks may oscillate in a trading range in coming days as investors follow developments in Ukraine and assess their impact on the global economy, said Peter Cardillo, chief market economist at Rockwell Global Capital.

The U.S. economy is unlikely to be directly impacted by the economic fallout from the escalating tensions between Russia and the West. Europe, though, is dependent on Russian natural gas for heat and electricity. Germany imports nearly all its natural gas from Russia, and France also gets a significant amount of its energy needs from Russia.

"I don't think the market is afraid of any military intervention, but it certainly is focusing on the negative aspects of an economic war," said Cardillo.

A sign of improved demand for gasoline in the U.S. wasn't enough to pull oil out of its downward slide Wednesday. After starting the day trading higher, benchmark U.S. crude oil fell 46 cents, or 0.5 per cent, to $96.92 a barrel on the New York Mercantile Exchange. It was the benchmark's 11th loss in the last 13 trading sessions, and the first close below $97 since Feb. 3.

U.S. government bond prices rose. The yield on the 10-year Treasury note declined to 2.47 per cent from 2.48 per cent on Tuesday. The yield is close to its low for the year of 2.45 per cent, which was reached in May.

In commodities trading, gold rose $22.90, or 1.8 per cent, to $1,308.20 an ounce. Silver rose 19 cents, or 1 per cent, to $20.02 an ounce. Copper fell four cents, or 1.2 per cent, to $3.17 a pound.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

How Winnipeg's slow growth saved the Exchange District

View more like this

Photo Store Gallery

  • RUTH BONNEVILLE / WINNIPEG FREE PRESS June 23, 2011 Local - A Monarch butterfly is perched on a flower  in the newly opened Butterfly Garden in Assiniboine Park Thursday morning.
  • A goose comes in for a landing Thursday morning through heavy fog on near Hyw 59 just north of Winnipeg - Day 17 Of Joe Bryksa’s 30 day goose challenge - May 24, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think Judy Wasylycia-Leis will greatly benefit from the endorsement by Winnipeg's firefighters?

View Results

View Related Story

Ads by Google