por admin » Mar Abr 17, 2018 11:14 am
Earnings Boost Stocks as Bonds Fall, Dollar Rises: Markets Wrap
More stories by Samuel Potter
April 16, 2018, 5:56 PM EDT
U.S. stocks rose amid better-than-expected earnings from several industry heavyweights, adding to evidence that the strengthening economy is lifting corporate profits.
The S&P 500 Index pushed through its average price for the past 50 days, a level it hasn’t breached in a month. Netflix Inc. surged after subscriber growth topped estimates. Johnson & Johnson and UnitedHealth Group Inc. climbed after reporting results, while Goldman Sachs Group Inc. continued a strong run of earnings for large lenders.
The spate of earnings overshadowed renewed machinations on the trade front, where China retaliated for the U.S.’s hit on ZTE Corp. with agricultural duties. The world’s second-largest economy also said it will ease access to its market, boosting automakers from Volkswagen AG to Tesla Inc.
“Earnings in 2018 are going to look excellent if not even a bit better than excellent,” Stephen Wood, chief market strategist at Russell Investments, said by phone. “Current headlines, they don’t seem to have lasting power and with a lot of policy issues, there’s a difference between initial statements and ultimate resolutions.”
The dollar largely shrugged off Trump’s latest intervention in currencies. The jawboning comes at a time of already elevated geopolitical tension, and ongoing fears of a lurch toward global protectionism. Meanwhile a slew of Federal Reserve officials is due to speak this week. Treasury yields edged higher and West Texas crude traded near $66 a barrel.
Elsewhere, U.K. wage growth including bonuses missed estimates and a survey showed German investor confidence tumbling, undermining both the pound and euro. China’s economy expanded in line with estimates in the first quarter, but industrial production missed in March even as retail sales came in stronger than expected.
Terminal users can read more in our markets live blog.
Here’s what to watch out for this week:
Morgan Stanley is among companies reporting results this week.
Trump welcomes Japan Prime Minister Shinzo Abe to Mar-a-Lago on Tuesday. North Korea and trade will probably be discussed.
Mining investors will get to take the pulse of the global industry this week, with Rio Tinto and BHP Billiton offering quarterly production reports.
Here are the main moves in markets:
Stocks
The S&P 500 Index increased 1.1 percent as of 11:03 a.m. New York time, the highest in more than three weeks.
The Stoxx Europe 600 Index rose 0.8 percent, the highest in seven weeks.
The MSCI All-Country World Index climbed 0.7 percent to the highest in almost four weeks.
The U.K.’s FTSE 100 Index advanced 0.4 percent, the biggest advance in a week.
Germany’s DAX Index rose 1.6 percent to the highest since Feb. 5.
The MSCI Emerging Market Index declined less than 0.05 percent to the lowest in almost two weeks.
Currencies
The Bloomberg Dollar Spot Index increased 0.1 percent.
The euro fell 0.3 percent to $1.2343.
The British pound declined 0.2 percent to $1.4307, the first retreat in more than a week.
The Japanese yen decreased less than 0.05 percent to 107.15 per dollar.
Bonds
The yield on 10-year Treasuries was steady at 2.83 percent.
Germany’s 10-year yield decreased one basis point to 0.51 percent.
Britain’s 10-year yield dipped two basis points to 1.440 percent.
Commodities
West Texas Intermediate crude was little changed at $66.19 a barrel.
Copper declined 0.5 percent to $3.08 a pound.
Gold decreased 0.1 percent to $1,344.61 an ounce.
— With assistance by Yakob Peterseil, and Richard Richt