US stocks: Goldman profit beat, easing rate-hike bets drive Wall Street higher U.S. stock indexes rose on Monday after Goldman Sachs beat profit expectations, extending last week’s positive momentum amid easing bets of a super-sized interest-rate hike by the Federal Reserve. The Dow rose over 200 points in early trading, picking up from Friday when U.S. economic data showed stronger-than-expected retail sales, an uptick in consumer sentiment and lower inflation expectations. The S&P 500 banks index added 0.9% on Monday, with Bank of America Corp reversing earlier declines to rise 1.3%, even as it posted a nearly 34% drop in second-quarter profit. “You’re getting the feeling that perhaps all the bad news is out of the way and investors are looking to see if this would be a reasonable entry point,” said Rick Meckler, partner at Cherry Lane Investments. At 10:07 a.m. ET the Dow Jones Industrial Average was up 210.11 points, or 0.67%, at 31,498.37, the S&P 500 was up 30.14 points, or 0.78%, at 3,893.30, and the Nasdaq Composite was up 147.30 points, or 1.29%, at 11,599.72. The S&P 500 technology sector index rose 1%, with chipmaker Nvidia Corp rising 5%. Several U.S. semiconductor firms are deliberating whether to oppose a package of chip industry subsidies if the final language of the legislation, awaiting a vote on Tuesday in the Senate, disproportionately benefits manufacturers such as Intel Corp, sources familiar with the matter told Reuters. Among other shares, Boeing Co jumped 3.3% after Delta Air Lines Inc said it will buy 100 MAX 10 jets worth about $13.5 billion at list prices and has options to buy another 30 at the Farnborough air show. Shares of Delta jumped 4.7%. With the earnings season in full swing, analysts now expect aggregate year-on-year S&P 500 second-quarter profit growth of 5.6%, down from the 6.8% estimate at the beginning of the quarter, according to Refinitiv data. The S&P 500 energy sector index jumped 3.1% as crude prices rose by more than $4. Advancing issues outnumbered decliners for a 4.10-to-1 ratio on the NYSE and a 3.33-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 23 new highs and 23 new lows.
If the current trend continues for a longer period of time, not only oil mills but oilseeds growers will also not be able to get good rates of their produce, says Samir Shah, president of Gujarat State Edible Oils and Oil Seeds Association (GEOA). Shah who is also past president of SOMA says that due to various international factors rates of edible oils had gone up considerably, especially imported oils earlier this year.
“With a view to curb rising prices of edible oil, the Government of India reduced import duty on edible oils. Considering the fact that India is producing hardly 30 percent of its edible oil requirement, the decision was right at that point of time. Now when international prices of edible oils have gone down by 15 percent to 25 percent and high production period has started in edible oil exporting countries, the government should gradually increase import duty to protect local oil mills and oilseeds growers,” said Shah. GEOA has also made representation before Union Minister for Commerce & Consumer Affairs, Piyush Goyal to increase import duty.
In June import duty on edible oils was ranging from 35 to 55 percent, since then the government gradually reduced import duty and at present it is ranging from zero percent to 15 percent on different edible oils, he said.
Just a month back prices of edible oils were through the roof and the government took appropriate measures by reducing import duty in order to protect consumers, says Atul Chaturvedi, president of Solvent Extractors Association of India (SEA). “Prices of edible oils are coming down globally. Kharif sowing has already started across the country. In the interest of local farmers, it is high time to enhance import duty in a phased manner to encourage local edible oil value chain,” opined Chaturvedi.
On Thursday imported Palm oil prices were at around Rs 2100 per 15 kg as against local Rs 2700 and Rs 2550 of groundnut and cottonseed oils. Prices of other local oils including ricebran, coconut, soyabean and mustard remained as high as Rs 2350, Rs 2520, Rs 2500 and Rs 2580 respectively.
India imports around 13-13.5 million tonnes of edible oils, of which around 8-8.5 million tonnes (around 63 per cent) are palm oil. Though the price of other imported Sunflower oil remained at around Rs 2700 per 15 kg, but import quantity of the oil is much lower than that of palm oil.