Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: Wall Street gains on upbeat earnings reports

Overnight Markets: Wall Street gains on upbeat earnings reports

Wall Street gained on Tuesday as solid earnings reports from Netflix Inc. to Harley-Davidson Inc. topped estimates and health-care shares surged amid a $45.7 billion bid for Allergan Inc.

The Dow Jones industrial average rose 65 points or 0.40%, to end at 16,514. The S&P 500 gained eight points or 0.41%, to 1,880. The Nasdaq Composite added 40 points or 0.97%, to 4,161.

The healthcare sector was the best performer as Allergan Inc (AGN.N) jumped 15.2% a day after activist investor William Ackman teamed up with Canadian drugmaker Valeant Pharmaceuticals International Inc (VRX.TO)(VRX.N) to bid for the company. US-listed Valeant shares surged 7.5%.

Netflix Inc (NFLX.O) rose 7% a day after reporting strong subscriber growth.

A deal between Novartis (NOVN.VX) and GlaxoSmithKline (GSK.L), in which the two traded over $20 billion worth of assets in an effort to cope with healthcare spending cuts and generic competition, also bolstered the healthcare sector. US-listed shares of Novartis (NVS.N) gained 1.3%, while Glaxo (GSK.N) rose 4.1%.

Dow components Travelers Cos Inc (TRV.N) and United Technologies Corp (UTX.N) both beat expectations, and United Tech raised the low end of its full-year profit outlook. Shares of Travelers rose 0.6% while United Tech added 0.8%.

McDonald's Corp (MCD.N) reported earnings that fell alongside a drop in US same-store sales, and its stock slipped 0.4%.

After the close, Gilead Sciences Inc (GILD.O) gained 1.1% after the drugmaker said its new $1,000 hepatitis C pill generated quarterly sales of $2.27 billion, helping the company's quarterly net profit nearly triple.

Facebook Inc (FB.O) shares gained 2.9%, helping to lift the Nasdaq 100 and the S&P 500.

In Asia, shares pared their advance on Wednesday after China’s preliminary manufacturing data signaled persisting weakness in the world’s second-largest economy and Australia’s inflation increased less than expected.

The MSCI Asia Pacific Index gained 0.2% to 139 as of 10:05 a.m. in Tokyo, paring gains of as much as 0.6%. Australia’s S&P/ASX 200 Index climbed 0.5%. Japan’s Topix index rose 0.6% and South Korea’s Kospi index advanced 0.1%.

New Zealand’s NZX 50 Index gained 0.7% and Taiwan’s Taiex index added 0.3%. China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index both fell 0.3%. Singapore Straits Times Index lost 0.4%.

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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter