View the article online at http://citywire.co.uk/money/article/a745496
Overnight Markets: Wall Street advances as tech shares rally
Gains were capped by a decline in banking stocks as regulators finalised the rule to limit banks' reliance on debt.
Wall Street advanced on Tuesday, snapping a three-day losing streak, as investors bought beaten-down social media and Internet shares.
The Dow Jones industrial average rose 10 points or 0.06%, to end at 16,256. The S&P 500 gained seven points or 0.38%, to finish at 1,852. The Nasdaq Composite added 33 points or 0.81%, to close at 4,113.
Technology stocks advanced yesterday, but the gains were capped by a decline in banking stocks.
Amazon.com Inc (AMZN.O) was up 2.9%, Yahoo Inc (YHOO.O) gained 2.3% and LinkedIn Corp (LNKD.N) advanced 5.9%.
Financial stocks were in the spotlight as regulators finalised the rule to limit banks' reliance on debt. Under the rule, the eight biggest US banks must raise a total of about $68 billion in capital by 2018 to comply with a new rule designed to prevent another financial crisis.
Goldman Sachs Group (GS.N) fell 1.3% and JP Morgan Chase & Co (JPM.N) slipped 0.3%.
Alcoa Inc (AA.N) kicked off the earnings season after the bell on Tuesday, reporting a first-quarter loss due to a restructuring charge. But the stock jumped more than 2% in extended-hours trade.
Retailer Bed, Bath & Beyond (BBBY.O) is scheduled to report earnings on Wednesday, while banks JP Morgan Chase and Wells Fargo & Co (WFC.N) will release results on Friday.
Biotechnology stocks oscillated between gains and losses on Tuesday. Gilead Sciences Inc (GILD.O) was among the S&P 500's biggest decliners, down 3.1%.
In Asia, shares gained on Wednesday in morning trade as consumer companies advanced. Japanese equities declined after the yen rose the most since August.
The MSCI Asia Pacific excluding Japan Index gained 0.8% to 482 as of 9:43 a.m. in Hong Kong. Hang Seng Index in Hong Kong rose 0.7% and Taiwan’s Taiex index added 0.3%. South Korea’s Kospi gained 0.1% and New Zealand’s NZX 50 Index added 0.6%. Singapore’s Straits Times Index rose 0.1% and Australia’s S&P/ASX 200 Index (AS51) advanced 1%.
Japan’s Topix index slid 1.7% as the yen traded at 101.88 per dollar. The currency strengthened 1.3% yesterday to touch a three-week high.
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by David Kempton on May 04, 2016 at 13:21