Stocks rally as in­vestors look to earn­ings

The Detroit News - - Business - BY RAN­DALL JENSEN Bloomberg News

U.S. stocks rose as geopo­lit­i­cal ten­sions faded and in­vestors turned to what’s ex­pected to be a blowout cor­po­rate earn­ings sea­son.

The dol­lar fell against most peers.

The S&P 500 In­dex gained to the high­est in al­most a month and erased its loss for the year as in­vestors eyed the earn­ings sea­son af­ter there was no im­me­di­ate reprisal to the U.S.-led mis­sile strike in Syria and trade con­cerns took a back seat.

The bench­mark got a boost from health-care sup­ply com­pa­nies af­ter a re­port said Ama­zon Inc. shelved a plan to sell drugs.

Net­flix Inc. shares rose more than 5 per­cent in af­ter-hours trad­ing af­ter the com­pany re­ported re­sults.

Trea­suries were lit­tle changed, while the green­back fell to the low­est since March af­ter Pres­i­dent Don­ald Trump ac­cused China and Rus­sia of de­valu­ing their cur­ren­cies.

West Texas crude fu­tures dropped be­low $67 a bar­rel.

“Earn­ings are go­ing to be very good, prob­a­bly up in the 15 to 20 per­cent neigh­bor­hood year over year. We felt that that would drive stocks higher over the course of the next two months,” Phil Or­lando, chief eq­uity mar­ket strate­gist at Fed­er­ated In­vestors Inc., said by phone. “We’re not look­ing for an earn­ings-re­lated or eco­nomic-re­lated im­pact from the Syria bomb­ings.”

While geopo­lit­i­cal con­cerns linger, the fo­cus this week is back on earn­ings from Amer­i­can cor­po­ra­tions and a slew of Fed­eral Re­serve of­fi­cials who are due to speak, in­clud­ing the in­com­ing head of the New York Fed, John Williams.

Else­where, alu­minum re­sumed its rally, adding to what was its big­gest weekly in­crease on record Fri­day.

The yen edged higher as polls showed fall­ing sup­port for Ja­panese Prime Min­is­ter Shinzo Abe’s gov­ern­ment.

Gold­man Sachs Group Inc. and Mor­gan Stan­ley are among the 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.

Here are the main moves in mar­kets:


The S&P 500 In­dex gained 0.8 per­cent to 2,677.84 as of 4 p.m. New York time. The Stoxx Eu­rope 600 In­dex de­creased 0.4 per­cent. The MSCIAll-Coun­try World In­dex rose 0.3 per­cent. TheU.K.’s FTSE100 In­dex fell 0.9 per­cent to the low­est in a week.


The Bloomberg Dol­lar Spot In­dex de­clined 0.3 per­cent to the low­est in three weeks.The euro gained 0.4 per­cent to $1.2375.The Bri­tish pound rose 0.7 per­cent to $1.4333, hit­ting the strong­est in about 22 months.The Ja­panese yen ad­vanced 0.2 per­cent to 107.14 per dol­lar.


The yield on 10-yearTrea­suries were lit­tle changed at 2.83 per­cent.Britain’s 10-year yield in­creased three ba­sis points to 1.463 per­cent.Ger­many’s 10-year yield rose one ba­sis point to 0.525 per­cent.


Gold was steady at $1,365.37 an ounce. West Texas In­ter­me­di­ate crude dipped 1.5 per­cent to $66.39 a bar­rel, the first re­treat in more than a week. LME alu­minum gained 4.99 per­cent to $2,399.00 per met­ric ton, the high­est in more than six years.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.