By Dennis Seid / NEMS Daily Journal
NEW YORK – Stocks managed to break a four-day losing streak Monday by the slimmest of margins. Investors had no change of heart about the economy, however, and again poured money into the safety of U.S. Treasurys.
The Dow fell 1.14, or 0.01 percent, to 10,302.01. The Standard amp& Poor’s 500 index rose 0.13, or 0.01 percent, to 1,079.38, while the Nasdaq composite index rose 8.39, or 0.4 percent, to 2,181.87.
The yield on the benchmark 10-year Treasury note fell to 2.57 percent from 2.68 percent late Monday. The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low.
On the New York Mercantile Exchange, gold futures moved higher. Oil slipped 15 cents at $75.24 a barrel.
Lowe’s profit rises, cuts sales outlook
NEW YORK – People bought more air conditioners and grills at Lowe’s Cos. in early summer, boosting second-quarter net income 10 percent, but overall spending was hurt by hot weather and the weak economy, the home-improvement retailer said Monday.
Lowe’s net income rose to $832 million, or 58 cents per share, in the quarter ended July 30. That’s up from $759 million, or 51 cents per share.
Revenue grew 4 percent to $14.36 billion, which fell short of the company’s expectations.
Lowe’s said it now expects a profit of $1.38 to $1.45 per share this year, up from a previous estimate of $1.37 to $1.47 per share. But it now expects its revenue to rise about 4 percent, rather than 5 to 7 percent. That suggests a total of about $49.11 billion in revenue, down from $49.58 billion to $50.53 billion.
Economy surges past Japan as world’s second largest
BEIJING – China has eclipsed Japan as the world’s second-biggest economy after three decades of blistering growth that put overtaking the U.S. in reach within 10 years.
Japan is still far richer per person after confirming Monday that economic output fell behind its giant neighbor for the three months ending June 30. However, the news is more proof of China’s arrival as a force that is altering the global balance of commercial, political and military power.
Japan’s people still are among the world’s richest, with a per capita income of $37,800 last year, compared with China’s $3,600. So are Americans at $42,240, their economy still by far the world’s biggest.
According to Monday’s report, Japan’s nominal GDP was worth $1.286 trillion in the April-to-June quarter compared with $1.335 trillion for China.
China could match the U.S. in total output as early as 2020, said a World Bank forecast in June. America’s gross domestic product was $14.26 trillion last year, nearly three times China’s.