Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: Dow scales five-year high on strong earnings

Overnight Markets: Dow scales five-year high on strong earnings

US equities rose on Tuesday, with the Dow Jones Industrial Average scaling a five-year high, after companies including Pfizer Inc. and Valero Energy Corp. reported strong earnings.

The Dow Jones industrial average was up 72 points, or 0.52%, at 13,954. The Standard & Poor's 500 Index was up eight points, or 0.51%, at 1,508. The Nasdaq Composite Index was down one point at 3,154.

Shares of Amazon.com jumped nearly 7% in extended trade after the world's largest Internet retailer posted fourth-quarter revenue that surged 22% to $21.27 billion.

Defensive shares gained the most, with drugmaker Pfizer up 3.2% after posting earnings and AT&T gaining 1.6%. Healthcare and telecom services sectors were also up.

Energy sector advanced in response to strong earnings from Valero Energy Corp and a hedge fund move to break up Hess Corp to boost investor returns. Valero shares jumped 12.8% and Hess gained 9%.

On the negative side, Ford fell 4.6% after forecast a wider loss in its European segment. Seagate Technology declined 9.4% and BMC Software was down 6.3% after disappointing outlook from both the companies.

D.R. Horton Inc jumped 11.8% after the homebuilder’s quarterly profit more than doubled.

Investors will focus on an announcement from the Federal Reserve today as the Federal Open Market Committee is likely to renew its commitment to asset buying.

In Asia, shares rose on Wednesday in morning trade amid speculation the US Fed will renew its commitment to asset purchases today.

The MSCI Asia Pacific Index gained 0.5% to 132 as of 10:49 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average rose 1.1%, headed for its highest close since April 2010. The broader Topix Index advanced 0.9%.

Australia’s S&P/ASX 200 Index gained 0.3%, rising for a tenth day and headed for its longest winning streak since October 2003. Taiwan’s Taiex Index climbed 0.2%.

South Korea’s Kospi Index advanced 0.2% after the nation’s industrial output unexpectedly climbed. Hong Kong’s Hang Seng Index rose 1.1%. The Shanghai Composite Index advanced 0.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter