View the article online at http://citywire.co.uk/money/article/a656811
Overnight Markets: US stocks rebound on strong corporate earnings
Dell’s shares gained after the world's No. 3 computer maker agreed to be taken private in a $24.4 billion deal.
US stocks bounced back on Tuesday, recovering much of Monday's losses, as stronger-than-expected earnings brightened the profit picture.
The Dow Jones industrial average was up 99 points, or 0.71%, at 13,979. The Standard & Poor's 500 Index was up 16 points, or 1.04%, at 1,511. The Nasdaq Composite Index was up 40 points, or 1.29%, at 3,172.
Shares gained higher after companies unveiled strong earnings yesterday that beat analyst estimates. The gains were also attributed to economic reports showing US services sector activity rising and the contraction in eurozone business activity decelerating.
Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 3.3%.
Estée Lauder Cos Inc reported a higher quarterly profit and raised its full-year profit forecast. The stock rose 6%.
S&P 500 companies are expected to report the fourth-quarter earnings up 4.5%, according to an estimate.
Dell Inc's shares gained after the world's No. 3 computer maker agreed to be taken private in a $24.4 billion deal, the largest leveraged buyout since the 2008-2009 financial crisis. The stock gained 1.1%. Dell rival Hewlett-Packard rose 2.5%.
Elsewhere, Apple jumped 3.5% and BlackBerry rose 7.6%.
Among the Dow blue-chip members, the biggest gains came from UnitedHealth Group, up 3.7%, Bank of America, which added 3.4% and JP Morgan Chase, whose shares rose 2.3%.
On the negative side, McGraw-Hill shares lost 10.7% after the US Justice Department filed a civil lawsuit seeking $5 billion over mortgage bond ratings.
Meanwhile, President Barack Obama urged Congress to approve a small package of spending cuts and tax reforms. Republican leaders quickly rejected the plan, but investors are expecting an agreement.
In Asia, shares gained on Wednesday led by Japan’s Nikkei 225 Stock Average as Toyota Motor Corp. increased its profit forecast and the yen weakened, boosting the earnings outlook for exporters.
News sponsored by:
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
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.