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: Financial sector leads Wall Street higher

Overnight Markets: Financial sector leads Wall Street higher

US stocks gained on Tuesday, extending a two-day advance in the Standard & Poor’s 500 Index, as data pointing to higher inflation lifted financial shares and smaller companies rallied before the Federal Reserve’s monetary policy decision on Wednesday.

The Dow Jones industrial average rose 27 points or 0.16%, to end at 16,808. The S&P 500 gained four points or 0.22%, to 1,942. The Nasdaq Composite added 16 points or 0.37%, to 4,337.

US President Barack Obama considered options for military action in response to a Sunni militant onslaught in Iraq. Market participants are closely monitoring the violence there, worried that it could lead to high oil prices for an extended period. Exxon Mobil Corp (XOM.N) fell 0.5%.

The Consumer Price Index rose 0.4% in May, the biggest gain in more than a year, pushing investors to sell some US government debt.

Financial sector was the day’s biggest gainer, with E*Trade Financial (ETFC.O) up 7.7%, while Charles Schwab Corp (SCHW.N) climbed 5.5%.

Expedia Inc (EXPE.O) rose 4.1%, while Netflix Inc (NFLX.O) added 3.1%. Keurig Green Mountain (GMCR.O) gained 4.6%.

Shares of Adobe Systems Inc (ADBE.O) rose 6.2% in after-hours trading after the software company reported its second-quarter results and gave a strong outlook.

Medtronic Inc. (MDT) advanced 2.6% as brokers including Morgan Stanley and Credit Suisse Group AG raised their ratings on the company.

Edwards Lifesciences rose 4.6% after the US Food and Drug Administration approved the company’s Sapien XT heart valve.

The Fed began its two-day policy meeting yesterday and is widely expected to conclude with another $10 billion cut of its monthly bond purchases. In other economic data released on Tuesday, housing starts and building permits fell more than expected in May.

In Asia, most stocks advanced on Wednesday, led by health-care shares, ahead of the Fed monetary policy decision today.

The MSCI Asia Pacific Index advanced 0.1% to 144 as of 9:52 a.m. in Hong Kong. Japan’s Topix index gained 0.4%. Hong Kong’s Hang Seng Index and the Shanghai Composite both slid 0.1%.

Australia’s S&P/ASX 200 Index was little changed and South Korea’s Kospi index declined 0.3%. New Zealand’s NZX 50 Index retreated 0.2%. Taiwan’s Taiex Index and Singapore’s Straits Times Index both added 0.1%.

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 Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: from Batman Live to commodity beta

Profile: from Batman Live to commodity beta

Charteris may be a family affair, but the company is not at any risk of turning sentimental

Wealth Manager on Twitter