By Barbara Kollmeyer and Anora Mahmudova, MarketWatch
American Express jumps more than 5% after earnings
U.S. stocks advanced on Thursday as investors welcomed on a
deluge of stronger-than-expected corporate earnings reports and
economic data.
The S&P 500 gained 14 points, or 0.6%, to 2,352, with seven
of the 11 main sectors trading higher. Industrials, materials
energy and financials led the gainers, up about 1%.
The Dow industrials gained 160 points, or 0.8%, to 20,455,
recovering its losses form the previous session. American Express
Co(AXP) was the top gainer among blue-chips, up more than 5%,
following earnings.
The Nasdaq Composite rose 46 points, or 0.8%, to 5,909, trading
within five points from its record close set on March 30.
"There is a lot of good news when it comes to earnings and
economic data and not only in the U.S. but overseas as well," said
Karyn Cavanaugh, senior market strategist at Voya Financial.
"It's almost as if investors are realizing that a selloff
yesterday because of a drop in oil was not warranted," Cavanaugh
said.
West Texas Intermediate crude futures for May, staged a rebound
from Wednesday's slump, to trade at $50.48 a barrel. Futures
suffered their largest decline in weeks
(http://www.marketwatch.com/story/oil-steadies-as-investors-await-eia-inventory-report-2017-04-19)
on Wednesday after a surprise climb in U.S. gasoline supplies.
On Thursday, Saudi Arabia's energy minister, Khalid al-Falih,
said the Organization of the Petroleum Exporting Countries is
likely to reach a deal to extend the group's production cuts into
the latter half of 2017
(http://www.marketwatch.com/story/opec-set-to-extend-output-deal-says-saudi-energy-minister-2017-04-20).
"Investors are paying too much attention to OPEC, but it's
really the U.S. that is driving the supply glut with its shale
production. We expect the oil price to continue to fluctuate within
$45-$50 a barrel," said Cavanaugh.
The moves on Wall Street follow an oil-induced slump on
Wednesday, though volatile crude-oil futures limited gains.
Economic front: "The trend of the market is down and is not
likely to reverse until clarity of the underlying fear factors are
put to rest," said Peter Cardillo, chief market economist for First
Standard Financial, in a note, referencing investor jitters over
the impending French election, and tensions on the Korean
Peninsula.
Initial jobless claims rose by 10,000 to a still-low 244,000 in
mid-April. Meanwhile, the number of out-of-work people collecting
unemployment checks fell to a 17-year low
(http://www.marketwatch.com/story/number-of-people-collecting-unemployment-checks-hits-17-year-low-jobless-claims-show-2017-04-20)
last week, underscoring the strongest U.S. labor market in
years.
The manufacturing index from the Philadelphia Fed slid in April
(http://www.marketwatch.com/story/philadelphia-fed-factory-gauge-slides-again-from-33-year-high-but-remains-elevated-2017-04-20),
but from high levels, suggesting slower growth in the factory
sector after a postelection surge.
Federal Reserve Governor Jerome Powell, speaking about capital
markets and the economy, said now was a good time to review the
raft of banking regulations put in place since the financial
crisis.
Earnings roll out: Shares of Philip Morris International
Inc.(PM) fell more than 3% after the company fell short of earnings
and first-quarter profit expectations
(http://www.marketwatch.com/story/philip-morris-shares-slump-after-earnings-miss-2017-04-20).
Foot Locker Inc.(FL) shares initially fell but rebounded to
trade 5.4% higher even after the athletic apparel group issued a
profit warning.
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)
(http://www.marketwatch.com/story/foot-locker-shares-slide-after-profit-warning-2017-04-20)Blackstone
Group L.P.(BX) reported profit that nearly tripled, but missed
expectations. Still, shares were up nearly 1.7%.
Verizon Communications Inc.(VZ) shares fell over 1% after the
telecom company reported first-quarter earnings that missed Wall
Street expectations.
EBay Inc.(EBAY) shares dropped 2.8% after earnings.
Qualcomm Inc.(QCOM) shares were down 0.4% even after the chip
designer beat earnings expectations
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19).
(http://www.marketwatch.com/story/qualcomm-gains-after-beating-earnings-expectations-despite-apple-legal-beef-2017-04-19)Visa
Inc.(V) and Mattel Inc.(MAT) are due to report after the close.
Other markets: The Nikkei 225 Index rose for a fourth straight
session, leading a recovery for Asia markets
(http://www.marketwatch.com/story/nikkei-up-for-4th-straight-session-leading-asian-market-recovery-2017-04-19).
European stocks were marginally higher, while the U.K.'s FTSE 100
index
(http://www.marketwatch.com/story/unilever-shares-push-ftse-toward-first-win-in-5-days-2017-04-20)
drifted south.
However, the French CAC 40 index rallied 1%
(http://www.marketwatch.com/story/french-stocks-rise-ahead-of-european-peers-despite-election-worries-2017-04-20)
after a Harris Interactive poll signaled a win for centrist
Emmanuel Macron in Sunday's first-round presidential election. The
euro shot to a three-week high
(http://www.marketwatch.com/story/euro-hits-3-week-high-as-macron-holds-slim-lead-in-french-presidential-poll-2017-04-20)
against the dollar of $1.0778.
Read:Here's how France's hotly contested election could spark
market turmoil
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)
The yield on the 10-year Treasury note inched 1 basis point
higher to 2.23%. Gold prices were little changed.
(END) Dow Jones Newswires
April 20, 2017 12:33 ET (16:33 GMT)
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