Welcome to our new website! Let us know what you think..

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
Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter