Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Overnight Markets: Economic reports push S&P 500 to five-year high

Overnight Markets: Economic reports push S&P 500 to five-year high

Wall Street gained on Thursday, pushing the Standard & Poor’s 500 Index to a five-year high, amid stronger-than-expected data on housing starts and jobless claims.

The Dow Jones industrial average was up 85 points, or 0.63%, at 13,596. The Standard & Poor's 500 Index was up eight points, or 0.56%, at 1,481. The Nasdaq Composite Index was up 18 points, or 0.59%, at 3,136.

Shares gained after data showed that the number of Americans filing new claims for unemployment benefits declined to a five-year low last week and housing starts surged last month to the highest since June 2008.

A separate report showed that manufacturing in the Philadelphia region unexpectedly shrank in January, showing how companies are becoming more concerned about across- the-board US government spending cuts that could slow growth.

Gains in the shares yesterday were tempered by weakness in the financial sector as Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits. While BofA was down 4.2%, Citigroup was off 2.9%.

Elsewhere, Intel shed 5.2% in extended-hours trading after the company forecast quarterly revenue that fell short of analysts' expectations.

Better-than-expected earnings and revenue reported by online marketplace eBay late Wednesday helped the stock gain 2.7%.

BlackRock Inc. added 4.4% after earnings increased 24% and the firm boosted its dividend and its buyback programme.

In the housing sector, PulteGroup Inc rose 4.9% and Toll Brothers Inc advanced 3.1%.

Energy shares led gains on the Dow after US crude oil prices jumped more than 1%. Shares of Exxon Mobil were up 0.8%, while Chevron added 0.7%.

In Asia, shares gained on Friday in afternoon trade after an upbeat Chinese economic data confirmed a recovery was on track in the world's second largest economy and the yen traded near a 30-month low.

The MSCI Asia Pacific Index gained 0.9% to 132 as of 12:42 p.m. Tokyo time.  China’s Shanghai Composite Index gained 0.6%, while Hong Kong’s Hang Seng Index rose 0.8%. The Nikkei 225 Stock Average jumped 2.6%, heading for its longest streak of weekly gains since April 1987.

South Korea’s Kospi Index added 0.4%, while Taiwan’s Taiex Index climbed 1%. Australia’s S&P/ASX 200 Index gained 0.3%.

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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter