Tech stocks lift S&P, Nasdaq; Spanish shares advance

NEW YORK: A rise in technology stocks and strong earnings from Oreo cookie maker Mondelez buoyed the S&P and the Nasdaq yesterday while a decline in Pfizer weighed on the Dow. Mondelez jumped nearly 6.23 percent after the company reported better-than-expected profit and revenue on cost cuts and higher demand in Europe and Latin America. A 7.76 percent surge in Kellogg’s shares following a surprise rise in quarterly sales helped the S&P consumer staples index gain 0.48 percent.

“We’re still in the thick of earnings and have seen some high-profile companies driving the market a lot,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

The earnings season is being closely tracked to justify stretched valuations and results have been largely above expectations. With more than half the S&P 500 components reported, third-quarter earnings are estimated to have climbed 6.7 percent, up from an expectation of 5.9percent growth at the start of October, according to Thomson Reuters I/B/E/S.

The Federal Open Market Committee starts its twoday meeting in Washington to discuss interest rates amid an impending announcement on the next Fed chair.

President Donald Trump is likely to pick Fed Governor Jerome Powell as the next head of the US central bank tomorrow. US Treasury yields fell after the report on Monday as Powell is seen as more dovish than other contenders. The central bank is likely to refrain from raising rates after the meeting, with economists expecting a hike only in December, according to a Reuters poll.

“The bigger news as far as economics goes is the payroll numbers on Friday.” Pfizer shares fell 1.3 percent despite the drugmaker’s profit beat and upbeat forecast. Under Armor slumped 14.75 percent after the company slashed 2017 sales and profit forecasts and reported its first year-on-year fall in revenue. Bigger rival and Dow component Nike declined about 1 percent.

Qualcomm dipped 6.35 percent after Reuters reported that Apple has designed iPhones and iPads that would drop chips supplied by Qualcomm. Advancing issues outnumbered decliners on the NYSE by 1,649 to 900. On the Nasdaq, 1,605 issues rose and 721 fell.

Catalan crisis fades

The Madrid stock market rallied yesterday on the fading prospect of Catalan independence, helping other European bourses higher, dealers said. In late morning deals, the Spanish capital’s benchmark IBEX 35 index won one percent, having fizzed 2.44-percent higher the previous day. London and Paris stocks each gained 0.1 percent while Frankfurt was closed for a German public holiday. “Spanish stocks have enjoyed another leg higher today, with the IBEX 35 hitting its highest level since August as the Catalan independence push has seemingly lost its way,” said analyst David Cheetham at trading firm XTB. “After declaring independence on Friday, the former regional leaders have experienced a backlash with large protests against secession seen in Barcelona over the weekend and the imposition of direct rule from Madrid yesterday.” Catalonia’s deposed separatist leader Carles Puigdemont was meanwhile set to hold a press conference in Brussels later, members of the European Parliament said, a day after he arrived in Belgium as Spanish prosecutors demanded he be charged with rebellion. — Agencies