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December 11, 2017
Thursday, October 23, 2014

Wall Street gains on industrial earnings but ends off highs

Earnings from Caterpillar and 3M drove Wall Street higher today but stocks pared gains in late trading after reports that a New York hospital was running Ebola tests on a healthcare worker.

The day's advance put the S&P 500 at its highest level in two weeks as results from industrial bellwethers reassured investors that corporations can generate strong profits despite concerns about global growth.

Still, the S&P finished about 0.6 percent below its intraday high after news that a healthcare worker who returned to the United States from West Africa had a fever and gastrointestinal symptoms.

Caterpillar Inc's profit beat forecasts and the machinery maker raised its full-year profit forecast. Shares of the Dow component jumped 5 percent to $99.27.

3M Co added 4.4 percent to $145.05. 3M's results were driven by US sales and its CEO called the US economy "improved."

The S&P industrial sector climbed 2.2 percent, the day's biggest advancing sector.

The Dow Jones industrial average rose 216.58 points, or 1.32 percent, to 16,677.9, the S&P 500 gained 23.71 points, or 1.23 percent, to 1,950.82 and the Nasdaq Composite added 69.95 points, or 1.6 percent, to 4,452.79.

On the downside, AT&T Inc fell 2.4 percent to $33.66, a day after reporting weaker-than-expected revenue growth. Yelp Inc slumped 18.6 percent to $57.17 in heavy trading a day after its revenue outlook disappointed.

After the close, Amazon.com Inc's sales projections for the holiday quarter disappointed and results missed targets, sending shares 9 percent lower.

Despite those disappointments, this earnings season has largely been positive for companies. New claims for US unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labour market was shrugging off jitters over a slowing global economy.

NYSE advancers outnumbered decliners 2,391 to 700, for a 3.42-to-1 ratio on the upside; on the Nasdaq, 1,962 issues rose and 731 fell, for a 2.68-to-1 ratio.

The S&P 500 index posted 40 new 52-week highs and 2 new lows; the Nasdaq Composite showed 57 new highs and 39 new lows.

About 7.1 billion shares changed hands on US exchanges, below the 8.2 billion October average, according to BATS Global Markets.

EUROPEAN MARKETS

European stocks ended higher in choppy trade, buoyed by strength on Wall Street but hindered by weak corporate results from companies including French tyre-maker Michelin.

The pan-European FTSEurofirst 300 also benefited from better-than-expected euro zone business activity data, although it still spent most of the day in negative territory until US stock futures turned higher.

The rise helped European stocks to erase losses and rally in to the close, with the FTSEurofirst 300 ending 0.7 percent higher at 1,317.28.

European indexes badly underperformed US counterparts, however, hindered by a number of poor earnings reports.

Michelin and Unilever cited poor demand from emerging markets as the former cut its full-year revenue goal and the latter reported weaker-than-expected quarterly sales. Michelin dropped 4.9 percent, while Unilever's London-listed shares were down 3.7 percent.

Of the STOXX Europe 600 companies to report results so far this quarter, 36 percent of companies have missed expectations, compared to 29 percent on Wall Street's S&P 500 .

Amid growing concerns over the strength in economic growth worldwide, Paris-based Carmignac, which has 49 billion euros ($62.1 billion) in assets under management, recently slashed its exposure to equities worldwide to 12 percent from 42 percent at the end of last month.

ASIAN MARKETS

Japanese stocks fell today as a slight expansion in China's manufacturing sector did little to quell market concerns about fragile global growth prospects.

The Nikkei share index closed down 0.4 percent at 15,138.96.

Airbag maker Takata Corp's shares tumbled 6.2 percent to an 18-month low after US regulators expanded the number of vehicles using the firm's faulty airbags that may be affected by recalls.

The broader Topix lost 0.3 percent to close at 1,232.34, while the new JPX-Nikkei Index 400 shed 0.3 percent to end at 11,212.87.

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Tags:  Stocks  shares  FTSEurofirst  Nikkei  US  Dow Jones  





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