|
Dollar could buck stocks
|
 |
September 10, 1997: 8:46 a.m. ET
Strains in U.S.-Japanese relations could put further pressure on the dollar
|
NEW YORK (CNNfn) - Increasingly tense relations between the Japan and United States over trade issues put pressure on the dollar overseas and may also put a drag on stocks Wednesday.
The U.S. dollar was down to 119 yen Wednesday. The pressure was caused by a U.S. official's statement in Tokyo that the U.S. is "experiencing a worsening of our bilateral trade relations with Japan."
After the official's remarks were made known, the S&P 500 futures index was down 3.50 to 930.50. Stocks in Europe also were lower on dollar concerns.
The developments add another element of drama to the Asian markets, which are dealing with currency instability.
Blue chip IBM already has been feeling some effects from the region's volatility. Its stock (IBM) lost 2-7/8 to 100 as analysts speculated that the company will not reach third-quarter earnings targets due to currency fluctuations and economic weakness in Asia. IBM does much of its business in Asia.
Swedish automaker Volvo also has been hurt by Southeast Asian woes. It has temporarily closed its assembly plant in Thailand. Its American Depositary Receipt on the New York Stock Exchange (VOLVY) was flat Tuesday at 26-5/8.
Stocks set to move on the Nasdaq, which set its third straight record close Tuesday, include Apple. The computer company reportedly is ready to announce its replacement for ousted CEO Gil Amelio, who left the top spot in July.
Its stock (AAPL) was up 5/16 to 21-13/16.
Glenayre Technologies moved higher in after-hours trading. The telecommunications equipment maker is buying two privately-held companies; Wireless Access and Open Development. Its stock (GEMS) was up 5/16 to close at 16-7/16 Tuesday on the Nasdaq.
Boeing may be planning on developing a new variation of its 747 jet, the Wall Street Journal said Wednesday. The proposal, which could cost billions, would be Boeing's answer to its European rival Airbus Industrie's plan to make its own "superjumbo" jet. Boeing (BA) was off 7/8 to 54-1/8 Tuesday.
The U.S. Federal Railroad Commission is expected to come down hard on Union Pacific's safety practices, the Journal reported Wednesday. Union Pacific has had three fatal accidents in the past three months. Its stock (UNP) was down 1/2 to 62-1/2 ahead of the news.
-- Randy Schultz
|
|
|
|
|
 |
|
