U.S. stocks rose, sending benchmark indexes to five-month highs, as better-than-estimated results at CSX Corp. and China’s record currency reserves boosted optimism in the economic recovery.
CSX, the second-largest publicly traded U.S. railroad, rallied 3.9 percent after also saying it’s seeing improvements across almost all markets. Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. advanced amid speculation that Chinese demand for raw materials will improve after the world’s fastest-growing major economy announced $2.65 trillion in currency reserves.
The Standard & Poor’s 500 Index rose 0.6 percent to 1,176.91 at 9:59 a.m. in New York. The Dow Jones Industrial Average increased 71.22 points, or 0.7 percent, to 11,091.62.
“The initial signs from the bellwethers are that this third-quarter earnings season is going to be a positive and help lift the overall stock market,” said Robert Pavlik, chief market strategist at Palm Beach Gardens, Florida-based Banyan Partners LLC, which manages about $1 billion. “The slow growth we’re seeing so far hasn’t done a tremendous negative impact to these firms.”
The S&P 500 rose for a third day yesterday after Federal Reserve policy makers indicated they are ready to pump more cash into the economy to protect the recovery by increasing purchases of Treasury securities, a tactic known as quantitative easing. The gauge has rallied 15 percent from this year’s low on July 2.
Record Streak
Going into this earnings season, more than 70 percent of S&P 500 companies have topped the average analyst earnings estimate for five straight quarters, the longest streak in Bloomberg data going back to 1993.
The prospect of Fed purchases has boosted the prices of Treasury notes and bonds, driving two-year yields to record lows and 10-year yields to the lowest since January 2009. While discouraging investment in government debt, as benchmarks the low yields limit borrowing costs low for companies and consumers.
The number of mortgage applications in the U.S. climbed for the first time in six weeks as record-low interest rates led to a surge in refinancing. The Mortgage Bankers Association’s index increased 15 percent in the week ended Oct. 8, the Washington- based group said today.
Euphoria
“Quantitative easing euphoria, coupled with the lack of bad surprises from quarterly results, and some switch from bonds toward equities in view of year-end portfolio rebalancing is driving the market,” said Ricciardo Ricciardelli, managing director at Unifortune Investment Management SGR SpA in London.
CSX gained 3.9 percent to $59.51 after third-quarter profit topped analyst estimates. Earnings from continuing operations climbed to $414 million, or $1.08 a share, exceeding the $10.4 average estimate of 24 analysts surveyed by Bloomberg.
Eighteen companies in the S&P 500 are scheduled to release third-quarter results this week. Analysts surveyed by Bloomberg predict 23 percent profit growth from a year earlier for companies in the index, the fourth straight quarterly increase after a record nine-quarter slump.
Alcoa, the biggest U.S. aluminum producer, advanced 0.8 percent to $13.30. Freeport-McMoRan, the world’s largest publicly traded copper producer, gained 1.5 percent to $96.86.
Copper rose to a 27-month high in London, climbing for a second day on prospects for increased consumption of the metal.
China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery.
Japan, Australia
Japanese machinery orders unexpectedly jumped 10.1 percent in August, the most since December, and Australian consumer confidence rebounded in October as the central bank extended a pause on interest-rate increases and employment surged.
Exxon Mobil Corp., the largest U.S. oil company, gained 0.3 percent to $64.89. Crude climbed for the first time in three days in New York after the International Energy Agency raised its global demand forecast and China reported crude imports reached a record.
Clearwire Corp. jumped 9.8 percent to $7.41. The high-speed wireless carrier is seeking to raise $2.5 billion to $5 billion in a wireless spectrum auction that has attracted telephone and cable companies, said people with direct knowledge of the sale.
MGM Resorts International dropped 8.7 percent to $12.43. The biggest casino operator on the Las Vegas Strip plans to raise more than $500 million by selling stock, and said its founder and biggest shareholder will reduce his stake.
http://jodnet.blogspot.com
CSX, the second-largest publicly traded U.S. railroad, rallied 3.9 percent after also saying it’s seeing improvements across almost all markets. Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. advanced amid speculation that Chinese demand for raw materials will improve after the world’s fastest-growing major economy announced $2.65 trillion in currency reserves.
The Standard & Poor’s 500 Index rose 0.6 percent to 1,176.91 at 9:59 a.m. in New York. The Dow Jones Industrial Average increased 71.22 points, or 0.7 percent, to 11,091.62.
“The initial signs from the bellwethers are that this third-quarter earnings season is going to be a positive and help lift the overall stock market,” said Robert Pavlik, chief market strategist at Palm Beach Gardens, Florida-based Banyan Partners LLC, which manages about $1 billion. “The slow growth we’re seeing so far hasn’t done a tremendous negative impact to these firms.”
The S&P 500 rose for a third day yesterday after Federal Reserve policy makers indicated they are ready to pump more cash into the economy to protect the recovery by increasing purchases of Treasury securities, a tactic known as quantitative easing. The gauge has rallied 15 percent from this year’s low on July 2.
Record Streak
Going into this earnings season, more than 70 percent of S&P 500 companies have topped the average analyst earnings estimate for five straight quarters, the longest streak in Bloomberg data going back to 1993.
The prospect of Fed purchases has boosted the prices of Treasury notes and bonds, driving two-year yields to record lows and 10-year yields to the lowest since January 2009. While discouraging investment in government debt, as benchmarks the low yields limit borrowing costs low for companies and consumers.
The number of mortgage applications in the U.S. climbed for the first time in six weeks as record-low interest rates led to a surge in refinancing. The Mortgage Bankers Association’s index increased 15 percent in the week ended Oct. 8, the Washington- based group said today.
Euphoria
“Quantitative easing euphoria, coupled with the lack of bad surprises from quarterly results, and some switch from bonds toward equities in view of year-end portfolio rebalancing is driving the market,” said Ricciardo Ricciardelli, managing director at Unifortune Investment Management SGR SpA in London.
CSX gained 3.9 percent to $59.51 after third-quarter profit topped analyst estimates. Earnings from continuing operations climbed to $414 million, or $1.08 a share, exceeding the $10.4 average estimate of 24 analysts surveyed by Bloomberg.
Eighteen companies in the S&P 500 are scheduled to release third-quarter results this week. Analysts surveyed by Bloomberg predict 23 percent profit growth from a year earlier for companies in the index, the fourth straight quarterly increase after a record nine-quarter slump.
Alcoa, the biggest U.S. aluminum producer, advanced 0.8 percent to $13.30. Freeport-McMoRan, the world’s largest publicly traded copper producer, gained 1.5 percent to $96.86.
Copper rose to a 27-month high in London, climbing for a second day on prospects for increased consumption of the metal.
China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery.
Japan, Australia
Japanese machinery orders unexpectedly jumped 10.1 percent in August, the most since December, and Australian consumer confidence rebounded in October as the central bank extended a pause on interest-rate increases and employment surged.
Exxon Mobil Corp., the largest U.S. oil company, gained 0.3 percent to $64.89. Crude climbed for the first time in three days in New York after the International Energy Agency raised its global demand forecast and China reported crude imports reached a record.
Clearwire Corp. jumped 9.8 percent to $7.41. The high-speed wireless carrier is seeking to raise $2.5 billion to $5 billion in a wireless spectrum auction that has attracted telephone and cable companies, said people with direct knowledge of the sale.
MGM Resorts International dropped 8.7 percent to $12.43. The biggest casino operator on the Las Vegas Strip plans to raise more than $500 million by selling stock, and said its founder and biggest shareholder will reduce his stake.
http://jodnet.blogspot.com
0 التعليقات
Post a Comment