Markets are now forecasting the Fed will cut interest rates in September and that will be the only one this year.
The Dow Jones Industrial Average was down 0.5% to 44,368.56 points; S&P 500 declined 0.27% to 6051.97; and Nasdaq Composite was flat at 19,649.95.
At home, Skellerup Holdings was down 3c to $5.17 after reporting a 5% increase in revenue to $165.34m and a 12% rise in net profit to $24.18m, a record, for the six months ending December. Operating earnings (ebit) of $35m, up 11%, was also a record.
The agri division ebit rose 31% to $15.5m compared with the previous corresponding period; industrial was down 2% to $22.4m; and corporate costs declined 7% to $2.9m.
Skellerup is paying an interim dividend of 9c a share, up 6%, on March 20, and full-year net profit guidance is $52m-$57m.
The company said the record first-half result was underpinned by an expected but significant lift from the agri division, with stronger sales of dairy rubberware consumables in international markets.
The industrial division experienced some volatility in US demand during the second quarter associated with the presidential election, Skellerup said.
Greg Smith, head of retail with Devon Funds Management, said there was a lot to like about the Skellerup result but the share price response was lukewarm.
“Skellerup has weathered the storm well and there’s no secret that the agri sector is doing well. There’s little rhyme or reason why the share price should drop.
“During this reporting season there’s beaten-up stocks like Vulcan Steel, Fletcher Building, SkyCity, Air New Zealand and Spark producing results and should they provide an upbeat outlook, there’s more scope for upside in the share price,” Smith said.
Overall card spend growth slipped a little further in January, down 0.9% on top of the 0.6% fall in December. ANZ said the types of spending most sensitive to interest rates are still experiencing the largest falls.
Housing was down 5.5% over the last 12 months, clothing declined 5.9%, durables decreased 6.6% and tourism spending fell 9.5%. Utilities and repairs had the biggest growth, up 4.3%, followed by business goods and services at 3.1%.
Auckland International Airport was down 10c to $8.52; Gentrack declined 23c or 1.84% to $12.25; Mercury Energy fell 19c or 2.88% to $6.41; and Serko decreased 6c to $3.69.
Manawa Energy, down 8c to $5.40, told the market it has received initial High Court orders but it won’t be releasing the scheme of arrangement booklet, including the independent adviser’s report, until Contact has received Commerce Commission clearance for the merger.
Turners Automotive eased 8c to $5.56; Vista Group shed 11c or 3.34% to $3.18; Sky TV was down 4c to $2.52; Allied Farmers decreased 3c or 3.8% to 76c; and Move Logistics declined 2c or 8.33% to 22c.
Rakon declined 2c or 3.28% to 59c; Ventia Services was down 10c or 2.35% to $4.15; and Private Land and Property Fund decreased 4.2c or 3.08% to $1.32.
Mainfreight gained $1.14 to $71.35; Fletcher Building added 5c to $3.08; SkyCity increased 6c or 4.26% to $1.47; Vulcan Steel rose 37c or 4.6% to $8.41; and Colonial Motor Co collected 20c or 3.17% to $6.50.
Heartland Group added 3c or 2.7% to $1.08; PGG Wrightson increased 13c or 6.74% to $2.06; Vector collected 8c or 2% to $4.08; 2 Cheap Cars was up 2c or 2.67% to 77c; and Green Cross Health rose 5c or 6.41% to 83c.
Synlait Milk climbed a further 8c or 11.94% to 75c; and Blackpearl Group rebounded 19c or 28.36% to 86c.
Contact Energy, up 4c to $9.29, has signed a new 10-year agreement with Fonterra to supply 415GWh of electricity a year to the Whareroa dairy factory.
The agreement is weighted to summer and Contact said this aligns with its portfolio of renewable generation, providing a great fit for the solar projects it is developing with Lightsource bp.
Foley Wines, unchanged at 58c, announced the resignation of Mark Turnbull as a director from February 17 and chief executive from April 30 after nearly 13 years with the company.
