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December 18, 2017
Tuesday, January 26, 2016

Strong earnings, oil recovery drive indexes higher

Wall Street was rebounding sharply, driven by a set of strong corporate results and recovering crude oil prices, ahead of the Federal Reserve's policy meeting and Apple's results.

The Dow rose 1.5 percent, while the S&P 500 was up 1 percent. All 10 major S&P sectors were higher, led by the 2.15 percent rise in the energy sector.

Crude prices jumped 3 percent on hopes that OPEC and non-OPEC producers would tackle an unrelenting supply glut.

Investors are still reeling from a turbulent start to 2016, which saw Wall Street post its worst-ever start to a year and a two-day recovery late last week was largely wiped out on Monday.

Shares of Apple, which is scheduled to report results after the close, were nearly flat. The iPhone maker's comments on its China business will be in sharp focus, amid broader concerns of a slowdown in demand.

The Dow Jones industrial average was up 249.76 points, or 1.57 percent, at 16,134.98, the S&P 500 was up 20.45 points, or 1.09 percent, at 1,897.53 and the Nasdaq Composite index was up 24.36 points, or 0.54 percent, at 4,542.85.

While the Fed is not expected to move on interest rates at its two-day meeting, which begins on Tuesday, investors will parse the commentary to gauge the impact of the recent global turmoil on the central bank's outlook.

Advancing issues outnumbered decliners on the NYSE by 2,355 to 598. On the Nasdaq, 1,634 issues rose and 940 fell.

The S&P 500 index showed three new 52-week highs and seven new lows, while the Nasdaq recorded four new highs and 57 lows.

In Europe, stocks gained after early losses, with commodities stocks rebounding after oil rose towards $31 on hopes of an agreement to deal with supply glut and metals prices gaining ground on speculative buying.

The STOXX Europe 600 Oil and Gas index rose 2.4 percent after oil prices rose on expectations that OPEC and non-OPEC producers may be edging closer to a deal. The Organization of the Petroleum Exporting Countries is making renewed calls for rival producers to cut supply alongside its members.

The European basic resources index rose 4.4 percent after copper and zinc prices hit multi-week peaks as speculators bought back short positions ahead of a holiday break in top metals consumer China.

Shares in Anglo American rose 11.8 percent, in line with a rally in the market and also after it reported that rough diamond sales had improved significantly.

Rio Tinto, Glencore and Fresnillo jumped 4.9-7.7 percent, helping the pan-European FTSEurofirst 300 to close 0.9 percent higher at 1,335.90 points after falling to a low of 1,296.66 earlier in the day. The index is down about 9 percent since the start of the year.

Global stocks have had a rocky start to 2016 due to concerns over slowing growth in China and plunging crude prices, and with investors struggling to find safe haven investments.

There was a brief reversal in the sell-off last week when European Central Bank chief Mario Draghi hinted at more stimulus, but worries have resurfaced over the central bank's ability to prop up the economy.

Meanwhile, Japanese stock indexes tumbled more than 2 percent as investors took profits on a two-day bounce after concerns about global growth were revived as oil prices slid below $30 per barrel once again.

The Nikkei share average fell 2.4 percent to 16,708.90.

Fears of a global slowdown prompted sharp selling of shares in Japan's shipping companies. The Topix subindex for marine transportation lost 4.6 percent, making it the day's worst performing sector.

The broader Topix shed 2.3 percent to end the day at 1,360.23 with each of its 33 subindexes in negative territory. The JPX-Nikkei Index 400 fell 2.3 percent to 12,273.79.

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Edition No. 5055 - This publication is a property of NEFIR S.A. -RNPI Nº 5343955 - Issn 1852 - 9224 - Te. 4349-1500 - San Juan 141 , (C1063ACY) CABA - Director Perdiodístico: Ricardo Daloia