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Trump on Wednesday announced a 25 per cent tariff on imports coming from India, along with an additional tax because of India’s purchases of Russian oil, beginning on Aug. 1. That’s when stiff tariffs Trump has proposed for many other countries are also scheduled to kick in, unless they reach trade deals that lower the rates.
The yield on the two-year US Treasury note edged up to 3.87 per cent from 3.86 per cent late Tuesday. It tends to closely follow expectations for what the Fed will do with its overnight interest rate.
The 10-year Treasury, which also takes into account longer-term expectations for the economy and inflation, was holding at 4.34 per cent.
On Wall Street, stocks were mixed as most big US companies continue to report profits for the spring that were bigger than analysts expected.
Humana rose 10.3 per cent after the insurer and health care giant reported stronger results for the spring than expected. It also raised its forecasts for profit and revenue over the full year.
Video-game maker Electronic Arts climbed 7 per cent after likewise topping Wall Street’s expectations. The company said it saw better-than-expected contributions from EA Sports and other games, and it will reveal its new Battlefield game on Thursday.
Companies are under pressure to deliver solid profit growth. They need to in order to justify the big jumps in their stock prices during recent months, which has caused some critics to say the broad US stock market looks too expensive.
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Trane Technologies, whose stock came into the day with a 27.5 per cent gain for the year so far, tumbled even though it reported a stronger-than-expected profit for the latest quarter. The heating, ventilation and air conditioning company’s revenue came up short of analysts’ estimates, as did its forecast for profit in the current quarter. It dropped 8 per cent.
Starbucks swung between gains and losses after it reported a weaker profit than analysts expected as it tries to turn around its operations. The company is hoping to boost its performance through improved store operations and new products, including a cold foam protein drink. Its stock was most recently up 0.4 per cent.
Palo Alto Networks fell 4.4 per cent after saying it would buy CyberArk, an identity-security company, for $US25 billion ($38.9 billion) in cash and stock. CyberArk shares added 1.4 per cent.
In stock markets abroad, indexes were mixed across Europe and Asia. Hong Kong’s Hang Seng fell 1.4 per cent, and South Korea’s Kospi rose 0.7 per cent for two of the bigger moves.
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