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u.s. news Diamars 30 maart 2021

US stocks slip from record heights, weighed down by banks

(AP) — U.S. stocks are been rising expectations that
slipping in midday trad- a supercharged economic re-
ing on Monday, as losses covery is on the way thanks
for big banks pull the S&P to COVID-19 vaccinations,
500 and Dow Jones Indus- immense spending by the
trial Average off the re- U.S. government and con-
cord highs they set at the tinued low rates from the
end of last week. Federal Reserve. Weighing
on stocks at the same time,
The S&P 500 was 0.7% though, are worries about a
lower, as of 11 a.m. Eastern coming rise in inflation and
time. The Dow Jones Indus- possibly too-ebullient prices
trial Average was down 134 across the market.
points, or 0.4%, at 32,938, Several key reports on the
and the Nasdaq composite economy are scheduled for
was 1% lower. this week, which could help
Financial stocks dropped to show whether stocks de-
some of the market’s sharp- serve the lofty prices they’ve
est losses amid worries about reached. Among the head-
how much pain big banks will liners is Friday’s jobs report,
take following soured trades where economists expect to
made by a major U.S. hedge see a big acceleration in hir-
fund. Stocks of energy pro- ing.
ducers were also weak after
the price of crude oil slipped, On Wednesday, President
but gains for Facebook and Joe Biden will also give de- Nomura estimated the claim the downdraft as investors it will order 100 737 MAX
other market heavyweights tails about his proposal to against its client could be question whether the soured airplanes. Regulators in the
helped to limit the S&P 500’s rebuild roads, bridges and about $2 billion. trades will stay isolated or United States and other
losses. other infrastructure. Shares Credit Suisse said that it “and have a more widespread ef- countries have cleared the
Most stocks across Wall Street of raw-material producers a number of other banks” fect through the system. plane model to resume fly-
were falling, while Treasury have rallied recently on rising are exiting trades they made Morgan Stanley fell 3.9%, ing, after it was grounded
yields were holding relative- expectations for infrastruc- with a significant U.S.-based and financial stocks across the worldwide in 2019 after two
ly steady. A widely followed ture spending by Washing- hedge fund, which defaulted S&P 500 lost 1.8% for one of crashes that killed 346 people.
measure of nervousness in ton, even though many past on a “margin call” last week. the sharpest losses among the The yield on the 10-year
the stock market climbed presidential administrations A margin call happens when 11 sectors that make up the Treasury rose to 1.67% from
12%, but the VIX index, have failed to make it happen. a broker tells a client to put index. 1.66% late Friday.
which shows how much vol- On Monday, though, the up cash after it borrowed In European stock markets,
atility traders are bracing for market’s spotlight was money to make trades. Nei- Energy stocks in the S&P 500 the German DAX returned
from the S&P 500, remains squarely on financial com- ther Credit Suisse nor No- slumped 2% after the price 0.5%, and the French CAC
close to its lowest level since panies after Japanese bank mura named the client, but of U.S. crude oil fell 0.9% 40 rose 0.4%. The FTSE 100
the pandemic rocked markets Nomura Holdings and Swiss news reports identified it as to $60.41 per barrel. Brent in London slipped 0.1%.
a year ago. bank Credit Suisse said New York-based Archegos crude, the international stan- In Asia, Japan’s Nikkei 225
The movements mark the lat- they’re facing potentially Capital Management. dard, lost 0.9% to $63.84 per rose 0.7%, South Korea’s
est ebb for Wall Street, which significant losses because of Shares of Credit Suisse and barrel. Kospi slipped 0.2% and Hong
has been mostly climbing in their dealings with a major Nomura each fell at least On the winning side was Kong’s Hang Seng was virtu-
a series of stops and starts. client, though the exact mag- 16% in their home countries, Boeing, which rose 1.7% af- ally flat. Stocks in Shanghai
Supporting the market have nitude is still unclear. and U.S. banks got caught in ter Southwest Airlines said rose 0.5%.

News Corp. buys Houghton Mifflin Harcourt books division

(AP) — Rupert Murdoch’s court’s book-publishing rious George children’s News Corp. owns Harper- Agents and authors are wor-
News Corp. is buying division, with titles by series, for $349 million. Collins, one of the indus- ried that a concentration of
Houghton Mifflin Har- J.R.R. Tolkien and the Cu- try’s largest book publishers, power in publishing would
and will operate the division, translate to less competition
called HMH Books & Media, for book deals and smaller
the New York company said advances.
Monday. The deal is the second News
The publishing industry is Corp. has announced in the
consolidating, with German past week. It said on Thurs-
media giant Bertelsmann’s day that it was buying finan-
purchase of rival Simon cial news publisher Investor’s
& Schuster in November Business Daily for $275 mil-
for $2.2 billion shrinking the lion.
so-called Big Five of Ameri-
can publishing — which also Houghton Mifflin, which
includes HarperCollins, Ha- says it serves 90% of U.S.
chette Book Group and Mac- schools, said the sale will al-
millan — to four. low it to focus on its K-12
News Corp. had reportedly education business, and it
been interested in buying Si- will put more emphasis on
mon & Schuster and its CEO digital sales. The company
Robert Thomson slammed has struggled financially for
the megadeal when it was years and will use some of the
announced, calling Bertels- sale’s proceeds to pay down
mann a “book behemoth” debt.
and “literary leviathan” that The deal is expected to close
would dominate the market. in the second quarter of 2021.