Wednesday, 26 September, 2018

Earnings drive gains for USA stocks in afternoon trading

Earnings drive gains for USA stocks in afternoon trading Earnings drive gains for USA stocks in afternoon trading
Nellie Chapman | 01 February, 2018, 19:12

NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.

Oil prices suffered pressure on Monday. If yields keep rising at this pace, the broader equity market could be in trouble, said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co.

The Dow rose 238 points, or 0.9 percent, to 26,318. The Nasdaq climbed 14 points, or 0.2 percent, to 7,416.

The blue chip Dow Jones Industrial Average sank almost 1.4%, marking its biggest one-day decline in months.

The Standard & Poor's 500-stock index dropped a tad more than 1 percent Tuesday, closing at 2,822.

Technology companies accounted for much of the gain, outweighing losses in health care and other sectors.

"In 2017, the US market was up over 22 percent, as measured by the S&P 500 index without experiencing a single month when the market declined - the first time this has happened since 1958", Norman said in a one-page paper. Eli Lilly lost $3.92, or 4.6 percent, to $82.17, while Gilead Sciences gave up $3.10, or 3.6 percent, to $84.19.

That sent health-care stocks tumbling, with pharmaceuticals giant Pfizer dropping 3.1 percent even as it reported robust earnings.

NOT GOOD ENOUGH: Textron shares fell 2.6 percent after the industrial conglomerate's earnings and revenue fell short of forecasts.

The prospect for stronger economic growth, both in the USA and overseas, has helped drive bond yields higher in recent months.

Volume so far on USA exchanges was 8.1 billion shares, compared with the 7.1 billion average for the full session over the last 20 trading days.

AT&T Verizon and Sprint were down between 1.1 per cent and 1.6 per cent on reports that President Donald Trump's national security team is looking at options such as a government-built super-fast 5G wireless network. The prospect for stronger economic growth, both in the US and overseas, has helped drive bond yields higher in recent months. Significantly higher bond rates would act as a brake on the economy by increasing the cost of borrowing.

However, the biggest decliners were defensive sectors " utilities, real estate and telecoms slid as U.S. 10-year treasury yields hit their highest since 2014.

This week yields have hovered at the highest level since April 2014. The euro strengthened to $1.2416 from $1.2404.

AT&T was down 0.9, Verizon slipped 0.7 and Sprint pulled back by 1.3 percent. Seoul's Kospi added 0.3 percent to 2,574.51.

The gain in Thomson Reuters helped the larger financial sector gain 0.1 per cent.

Hong Kong's Hang Seng - which had risen in 24 of the past 27 trading days, hitting multiple record highs on the way - finished down 0.6%.