por admin » Mar Ene 15, 2019 4:15 pm
Tech Shares Lead U.S. Stocks Higher
Major indexes notch their first day of gains in three trading sessions
By David Hodari and Michael Wursthorn
Updated Jan. 15, 2019 4:13 p.m. ET
Shares of technology manufacturers and other companies led the stock market higher after representatives of the People’s Bank of China said they would step up efforts to spur economic growth this year, reversing some of the heavy losses the sector suffered in recent months as trade tensions and tepid economic growth in Asia pressured shares of those businesses.
A handful of upbeat fourth-quarter earnings reports, with the latest coming from UnitedHealth Group , also have helped to tamp down some of the brewing concern around the health of corporate profits.
The "Five Bulls Gathering Fortune" sculptures in Beijing.
The "Five Bulls Gathering Fortune" sculptures in Beijing. Photo: Andy Wong/Associated Press
“People feared a whole bunch of bad things for the economy since last fall and they’re now gradually getting evidence, one piece at a time, that their fears were irrational,” said Craig Callahan, founder and president of investment firm Icon Advisers, which manages several mutual funds. “Things aren’t as bad as they seem.”
The S&P 500 added 1.1%, with shares of tech and communications companies in the broad index gaining more than 1%. The Nasdaq Composite rose 1.7%, closing at its highest in more than a month.
The Dow Jones Industrial Average, meanwhile, added 156 points, or 0.6%, to 24065.59.
All three indexes remained in positive territory following British Parliament’s overwhelming rejection of a proposed Brexit deal Tuesday.
U.S. stocks got an initial nudge higher before the market’s open after Chinese officials pledged to ramp up efforts to support the country’s economy, including improving credit availability for smaller companies, accelerate infrastructure investment and cutting taxes.
For months, data has suggested China is in the midst of an economic slowdown, hurting the profits of some big multinational companies, including tech giant Apple and car makers such as Ford Motor and General Motors . That fanned concerns among investors that slowing global growth would hurt the U.S. economic expansion, especially as the U.S. and China continue to clash on trade.
That view was reflected in Bank of America Merrill Lynch’s monthly survey of fund managers, 60% of whom expect global growth to weaken in the coming 12 months.
But earnings have been mostly upbeat so far, with the exception of some disappointing results from banks. While just over two dozen S&P 500 companies have reported results so far, 88% have posted stronger-than-expected results, keeping the index on track to boost profits by more than 10% from a year earlier.
UnitedHealth, for example, rose more than 3% after the company reported stronger-than-expected earnings in the fourth quarter Tuesday morning.
Still, there are some signs of weakness after some banks reported lackluster earnings.
JPMorgan Chase surprised analysts with a rare profit miss Tuesday due to a drop in trading revenue. The bank’s shares gained 0.7%, recovering from an earlier loss. Wells Fargo , however, fell 1.6% after it said its quarterly profit fell slightly as the bank’s consumer business continued to struggle.
That offset some of the gains from technology and health-care companies.
Shares of most tech manufacturers were higher since China’s central bank said it would try to boost growth, while Netflix jumped more than 6% after the streaming service said it would boost increase prices for U.S. customers by its widest margin ever, pushing the cost of one of its more popular subscription plans to $13 a month from $11. Assuming all of its U.S. customers pay the new price, Netflix is estimated to raise an extra $1.4 billion a year.
Elsewhere, the Stoxx Europe 600 closed up 0.3% ahead of the failed U.K. vote.
Major indexes in Asia also notched gains following the pledge from the People’s Bank of China, with the Shanghai Composite and Hong Kong’s Hang Seng gaining 1.4% and 2%, respectively.