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 rebounds on corporate earnings

Overnight Markets: Wall Street rebounds on corporate earnings

Wall Street bounced back on Tuesday as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates and the market's focus turned to the Federal Reserve's next move on stimulus.

The Dow Jones industrial average gained 91 points or 0.57%, to end at 15,929. The S&P 500 gained 11 points or 0.61%, to finish at 1,793. The Nasdaq Composite added 14 points or 0.35%, to close at 4,098.

Shares of Pfizer Inc (PFE.N) shot up 2.6%, boosting both the Dow and S&P 500, after the biggest US drugmaker reported a better-than-expected quarterly profit.

Shares of D.R. Horton (DHI.N) surged 9.8% after the largest US homebuilder reported a 4% rise in quarterly orders.

Bucking Tuesday's trend, the stock of Apple Inc (AAPL.O) plunged 8% to close at $506.50 - its worst slide in a year - a day after holiday iPhone sales missed expectations. During the regular session, activist investor Carl Icahn said he bought another half-billion dollars' worth of Apple stock, his third investment in the iPhone and iPad maker in less than a week. The purchase increases his stake to more than $4 billion.

After the bell, shares of audio chipmaker Cirrus Logic Inc (CRUS.O), an Apple supplier, fell 4.6% as it forecast fourth-quarter revenue far below Wall Street's estimates.

In other moves after the bell, shares of Yahoo (YHOO.O) fell 3.9% after the company's results showed revenue declined for the fourth consecutive quarter.

Shares of AT&T (T.N) declined 1.7% after the company reported slower wireless subscriber growth in the latest quarter than Wall Street had estimated.

Investors were anxious ahead of the conclusion of the Fed's two-day policy meeting on Wednesday to hear whether it will cut another $10 billion from its monthly bond-buying programme.

The day's economic data showed US consumer confidence rose in January. Consumers grew more optimistic about both business conditions and the job market, according to the Conference Board.

But orders for long-lasting US manufactured goods unexpectedly declined 4.3% in December, and a gauge of planned business spending on capital goods also slid.

In Asia, shares gained on Wednesday after Turkey’s central bank more than doubled interest rates to arrest a currency slide that roiled global markets.

The MSCI Asia Pacific Index advanced 1.1% to 136 as of 11:01 a.m. in Tokyo. Japan’s Topix index climbed 1.9% as the yen slid as much as 0.5% against the dollar. Australia’s S&P/ASX 200 Index rose 0.6% and New Zealand’s NZX 50 Index added 0.5%.

Hong Kong’s Hang Seng Index increased 1.1%, while China’s Shanghai Composite Index advanced 0.3%. South Korea’s Kospi index gained 0.7% after data showed the nation’s industrial output increased 3.4% in December from November, the biggest gain since June 2009. Singapore’s Straits Times Index was little changed.

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 Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter