Ibovespa Rises on Vale Earnings, Brazil Jobless Rate
Most Brazilian stocks dropped, led by cosmetics maker Natura Cosmeticos SA (NATU3), as first-quarter earnings reports signaled economic weakness is curbing profits.
Eight of nine companies on the 69-member equity gauge reported first-quarter sales that trailed estimates, while five missed earnings forecasts, according to data compiled by Bloomberg. Natura fell the most in a month. Airline Gol Linhas Aereas Inteligentes SA (GOLL4) rose after O Estado de S.Paulo reported Brazil may cut taxes on jet fuel. Vale SA, the world’s largest iron-ore producer, rallied after results beat forecasts.
The Ibovespa sank 0.2 percent to 54,868.56 at 10:53 a.m. in Sao Paulo. Forty-five stocks fell on the gauge while 20 advanced. The real was little changed at 2.0102 per dollar.
“The Bovespa’s performance from now on will depend on the first-quarter earnings companies will report,” Sandro Fernandes, a trader at brokerage Corval, said by phone from Belo Horizonte, Brazil. “We’ve had some reports that were not so good, such as Natura’s. This earnings season will give a direction to the equity market.”
Natura dropped 3 percent to 47.53 reais. Vale gained 2.3 percent to 32.83 reais after posting earnings in the first quarter that beat estimates for the first time in two years.
Gol rose 5.1 percent to 13.86 reais.
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