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
Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter