markets

Stocks Rise on Earnings as Tech Rallies; Oil Gains: Markets Wrap

Updated on
  • Dollar declines; copper tumbles as inventories surge
  • West Texas crude to $64 a barrel; price of gold advances
Trade issues are the "biggest risk" to the global economy, BlackRock’s Philipp Hildebrand says in Davos.

U.S. stocks rose a third day, while emerging-market equities hit the highest in a decade as synchronized global growth boosts corporate profits. Oil jumped as the dollar fell.

The S&P 500 Index closed at a fresh record as the strong start to earnings continued, with 82 percent firms that have reported topping estimates. Tech shares lifted the Nasdaq 100 Index to a fifth straight gain and the MSCI Emerging Markets Index powered to an eighth day of advances. The 10-year Treasury yield fell for a second session, while the dollar dropped toward lows of the year.

President Donald Trump imposed tariffs on imported solar panels and washing machines.

Source: Bloomberg)

“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”

With earnings season in full swing, investors held to the risk-on stance that’s taken stocks around the world higher. The synchronized global economic recovery shows no signs of slowing and the BOJ’s signal added to optimism that central banks won’t rush to tap the brakes. Investors also kept an eye on Davos, Switzerland, where the world’s business elites gathered for an annual conference roiled by protectionist moves across the Atlantic.

Terminal users can read more in our markets blog.

Here’s what to watch out for this week:

  • Earnings season is in full swing: Novartis, General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come later in the week.
  • Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum.
  • The European Central Bank announces its rate decision on Jan. 25. 
  • The U.K. House of Lords is considering Prime Minister Theresa May’s Brexit bill this week.

These are the main moves in markets:

Stocks

  • The S&P 500 Index rose 0.2 percent to 2,839.30 as of 4 p.m. New York time.
  • The Dow Jones Industrial Average slipped 4 points to 26,210.40.
  • The Nasdaq Composite Index advanced 0.7 percent.
  • The Stoxx Europe 600 Index gained 0.2 percent, rising for the fourth day in a row.
  • The MSCI All-Country World Index climbed 0.5 percent to the highest on record.
  • The MSCI Emerging Market Index increased 1.1 percent to the highest in a decade.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2 percent.
  • The euro rose 0.3 percent to $1.2294.
  • The British pound added 0.1 percent at $1.3996.
  • The Japanese yen gained 0.5 percent to 110.33 per dollar, the strongest in almost 19 weeks.

Bonds

  • The yield on 10-year Treasuries decreased three basis points to 2.62 percent.
  • Germany’s 10-year yield was little changed at 0.56 percent.
  • Britain’s 10-year yield was steady at 1.355 percent.

Commodities

  • Gold rose 0.6 percent to $1,341.35 an ounce, set for the highest since September.
  • West Texas Intermediate crude increased 2 percent to $64.75 a barrel.
  • Copper futures fell 2.5 percent to $311.80 per pound, most since Dec. 5.

— With assistance by Todd White, and Kailey Leinz

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE