View the article online at http://citywire.co.uk/money/article/a605727
Overnight Markets: US stocks gain amid strong technology earnings
Shares rose on better-than-expected earnings from tech companies and bets that dismal economic data will lead to more monetary stimulus.
U.S. stocks gained on Thursday, sending the Standard & Poor’s 500 Index to a two-month high, amid better-than-expected earnings from technology companies and bets that dismal economic data will lead to more monetary stimulus.
The Dow Jones industrial average gained 35 points, or 0.27%, to 12,943. The Standard & Poor's 500 Index rose four points, or 0.27%, to 1,377. The Nasdaq Composite Index added 23 points, or 0.79%, to 2,966.
Technology shares gained after IBM raised its full-year outlook, eBay's profit beat forecasts and Qualcomm said it expects a "strong December quarter." IBM shares jumped 3.8%, Qualcomm was up 4.2% and eBay surged 8.6%.
However, weak manufacturing and employment data as well as falling revenue at Morgan Stanley capped Wall Street gains. Manufacturing in the U.S. mid-Atlantic region contracted for a third month and home resales were lower than predicted. The data followed a report that showed more Americans applied for unemployment insurance in the latest week. But more monetary stimulus hopes helped the market shake off bad news.
Morgan Stanley fell 5.3% as quarterly revenue declined due to a slowdown in trading and deal-making volumes. The company will cut 1,000 employees by the end of this year.
U.S.-traded shares of Mellanox Technologies surged about 41.5% after the chipmaker's profit beat analysts' expectations.
Elsewhere, Textron shares rallied 11.5% after the world's largest maker of corporate jets beat Wall Street forecasts.
Walgreen soared 12% after renewing a contract with Express Scripts. Google rose 3.1% as revenue surged 35%.
In Asia, equities declined on Friday amid speculation China will keep property curbs in place and as U.S. economic reports missed estimates.
The MSCI Asia Pacific Index slid 0.6% to 117 as of 1:33 p.m. in Tokyo. Japan’s Nikkei 225 Stock Average declined 0.9%, while South Korea’s Kospi Index climbed 0.2%. Australia’s S&P/ASX 200 Index retreated 0.1%.
Singapore’s Straits Times Index declined 0.4%. Hong Kong’s Hang Seng Index gained 0.2%, while China’s Shanghai Composite Index retreated 0.4%.
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.