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: Wall Street rebounds on retail sales

Overnight Markets: Wall Street rebounds on retail sales

Wall Street gained on Tuesday, with the Standard & Poor’s 500 Index registering its biggest gain of the year, as a strong December retail sales reading and corporate merger activity eased concerns that economic growth might be slowing.

The Dow Jones industrial average rose 116 points or 0.71%, to 16,374, the S&P 500 gained 20 points or 1.08%, to 1,839, and the Nasdaq Composite added 70 points, or 1.69%, to 4,183.

Google (GOOG.O) surged 2.4%, giving a large boost to the outperforming Nasdaq, a day after the company announced plans to acquire Nest Labs Inc.

Economic data showed core US retail sales increased 0.7% in December from the previous month, flying past the 0.3% gain economists had expected.

Fourth-quarter economic growth prospects were further boosted by a report showing retail inventories, excluding autos, increased 0.6% in November.

In company news, shares of General Motors (GM.N) jumped 3% in extended trading after the company said it will pay the first quarterly dividend on its common stock in almost six years.

Intel Corp (INTC.O) shares rose 4% in regular trade after JP Morgan upgraded the stock to "overweight" from "neutral".

Electric car maker Tesla (TSLA.O) said deliveries of its Model S sedan in the fourth quarter blew past its forecast, sending shares up 15.7%.

In the financial sector, both JP Morgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) posted earnings that beat expectations. However, shares of both banks rose less than 0.1%.

Both GameStop Corp (GME.N) and Stratasys Ltd (SSYS.O) slumped after giving outlooks that were weaker than expected. GameStop lost 19.9%, while 3D printer maker Stratasys slid 8.2%.

In contrast, Intuitive Surgical (ISRG.O) advanced 6.8% after the surgical equipment maker gave a strong fourth-quarter outlook.

Time Warner Cable Inc. climbed 2.7% after rejecting an acquisition offer from Charter Communications Inc.

In Asia, shares gained on Wednesday in midsession after US retail sales topped estimates and the World Bank raised its global growth forecast.

The MSCI Asia Pacific Index advanced 0.3% to 139 as of 12:29 p.m. in Hong Kong. Japan’s Topix (TPX) index jumped 1.4% after the yen slipped 1.2% against the dollar yesterday.

South Korea’s Kospi index advanced 0.2%. Australia’s S&P/ASX 200 Index added 0.4% and New Zealand’s NZX 50 Index climbed 0.9%.

Hong Kong’s Hang Seng Index (HSI) gained 0.3% and China’s Shanghai Composite slid 0.6%. Singapore’s Straits Times Index added 0.7% and Taiwan’s Taiex index rose 0.8%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter