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Global stocks rise on corporate results, rising commodities

Reuters  |  NEW YORK 

By Dion Rabouin and Herbert Lash

NEW YORK (Reuters) - A gauge of equity climbed to a one-week high on Tuesday, lifted by rising commodity prices and a strong bounce in Europe, while solid corporate earnings helped drive share prices higher.

Wall Street rose after a raft of stronger-than-expected from UnitedHealth Group Inc , Netflix Inc and Goldman Sachs Group Inc , among others.

UnitedHealth gained 7.05 percent, Netflix soared 19.95 percent and Goldman Sachs rose 2.3 percent.

S&P 500 earnings are now expected have increased slightly in the third quarter, reversing forecasts for another quarter of profit declines, Thomson Reuters data showed.

It will be the first quarter since 2014 that both earnings and revenue for S&P 500 companies increased.

"The are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

MSCI's all-country world index <.MIWD00000PUS> of equity returns in 46 countries rose 0.99 percent, while in major stock indices rose more than 1 percent.

On Wall Street, the Dow Jones industrial average <.DJI> rose 95.06 points, or 0.53 percent, to 18,181.46. The S&P 500 <.SPX> gained 16.11 points, or 0.76 percent, to 2,142.61 and the Nasdaq Composite <.IXIC> added 58.71 points, or 1.13 percent, to 5,258.53.

The pan-European STOXX 600 index <.STOXX> rose 1.5 percentto its highest level in nearly a week. However, the benchmarkindex is still down more than 6 percent year to date.

The market was helped by a 2.8 percent rally in the STOXXEurope 600 Basic Resources index <.SXPP>, the top sector gainer.

A report on U.S. consumer prices showed underlying inflation moderated slightly in September, indicating it may take longer than expected for inflation to reach the Federal Reserve's target of 2 percent.

Fed Chair Janet Yellen said last Friday that the U.S. central bank could allow inflation to run above the target. The data may keep the Fed from raising interest rates in December as expected.

U.S. Treasury yields also fell in line with their UK counterparts on signs parliament will have to ratify Britain's exit from the European Union. British lawmakers are seen as less inclined to take a hard line on Brexit than Prime Minister Theresa May.

Benchmark U.S. 10-year Treasury notes fell 5/32 in price to yield 1.7485 percent.

MSCI's emerging market index rose 1.73 percent, its biggest gain in more than three months, backed by the Fed's expected slower rate of tightening and the bump in commodities prices.

The dollar <.DXY> was off its seven-month high against a basket of major currencies, but was flat overall on the day at 97.870.

Oil prices steadied as the dollar gave up early gains and expectations of output curbs by the Organization of the Petroleum Exporting Countries lifted crude prices despite forecasts for a second straight weekly build in U.S. crude stockpiles.

benchmark Brent added 16 cents to settle at $51.68, while U.S. crude rose 35 cents to settle at $50.29 a barrel.

(Reporting by Dion Rabouin; Editing by Nick Zieminski and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Global stocks rise on corporate results, rising commodities

NEW YORK (Reuters) - A gauge of global equity markets climbed to a one-week high on Tuesday, lifted by rising commodity prices and a strong bounce in Europe, while solid corporate earnings helped drive share prices higher.

By Dion Rabouin and Herbert Lash

NEW YORK (Reuters) - A gauge of equity climbed to a one-week high on Tuesday, lifted by rising commodity prices and a strong bounce in Europe, while solid corporate earnings helped drive share prices higher.

Wall Street rose after a raft of stronger-than-expected from UnitedHealth Group Inc , Netflix Inc and Goldman Sachs Group Inc , among others.

UnitedHealth gained 7.05 percent, Netflix soared 19.95 percent and Goldman Sachs rose 2.3 percent.

S&P 500 earnings are now expected have increased slightly in the third quarter, reversing forecasts for another quarter of profit declines, Thomson Reuters data showed.

It will be the first quarter since 2014 that both earnings and revenue for S&P 500 companies increased.

"The are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

MSCI's all-country world index <.MIWD00000PUS> of equity returns in 46 countries rose 0.99 percent, while in major stock indices rose more than 1 percent.

On Wall Street, the Dow Jones industrial average <.DJI> rose 95.06 points, or 0.53 percent, to 18,181.46. The S&P 500 <.SPX> gained 16.11 points, or 0.76 percent, to 2,142.61 and the Nasdaq Composite <.IXIC> added 58.71 points, or 1.13 percent, to 5,258.53.

The pan-European STOXX 600 index <.STOXX> rose 1.5 percentto its highest level in nearly a week. However, the benchmarkindex is still down more than 6 percent year to date.

The market was helped by a 2.8 percent rally in the STOXXEurope 600 Basic Resources index <.SXPP>, the top sector gainer.

A report on U.S. consumer prices showed underlying inflation moderated slightly in September, indicating it may take longer than expected for inflation to reach the Federal Reserve's target of 2 percent.

Fed Chair Janet Yellen said last Friday that the U.S. central bank could allow inflation to run above the target. The data may keep the Fed from raising interest rates in December as expected.

U.S. Treasury yields also fell in line with their UK counterparts on signs parliament will have to ratify Britain's exit from the European Union. British lawmakers are seen as less inclined to take a hard line on Brexit than Prime Minister Theresa May.

Benchmark U.S. 10-year Treasury notes fell 5/32 in price to yield 1.7485 percent.

MSCI's emerging market index rose 1.73 percent, its biggest gain in more than three months, backed by the Fed's expected slower rate of tightening and the bump in commodities prices.

The dollar <.DXY> was off its seven-month high against a basket of major currencies, but was flat overall on the day at 97.870.

Oil prices steadied as the dollar gave up early gains and expectations of output curbs by the Organization of the Petroleum Exporting Countries lifted crude prices despite forecasts for a second straight weekly build in U.S. crude stockpiles.

benchmark Brent added 16 cents to settle at $51.68, while U.S. crude rose 35 cents to settle at $50.29 a barrel.

(Reporting by Dion Rabouin; Editing by Nick Zieminski and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Global stocks rise on corporate results, rising commodities

By Dion Rabouin and Herbert Lash

NEW YORK (Reuters) - A gauge of equity climbed to a one-week high on Tuesday, lifted by rising commodity prices and a strong bounce in Europe, while solid corporate earnings helped drive share prices higher.

Wall Street rose after a raft of stronger-than-expected from UnitedHealth Group Inc , Netflix Inc and Goldman Sachs Group Inc , among others.

UnitedHealth gained 7.05 percent, Netflix soared 19.95 percent and Goldman Sachs rose 2.3 percent.

S&P 500 earnings are now expected have increased slightly in the third quarter, reversing forecasts for another quarter of profit declines, Thomson Reuters data showed.

It will be the first quarter since 2014 that both earnings and revenue for S&P 500 companies increased.

"The are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

MSCI's all-country world index <.MIWD00000PUS> of equity returns in 46 countries rose 0.99 percent, while in major stock indices rose more than 1 percent.

On Wall Street, the Dow Jones industrial average <.DJI> rose 95.06 points, or 0.53 percent, to 18,181.46. The S&P 500 <.SPX> gained 16.11 points, or 0.76 percent, to 2,142.61 and the Nasdaq Composite <.IXIC> added 58.71 points, or 1.13 percent, to 5,258.53.

The pan-European STOXX 600 index <.STOXX> rose 1.5 percentto its highest level in nearly a week. However, the benchmarkindex is still down more than 6 percent year to date.

The market was helped by a 2.8 percent rally in the STOXXEurope 600 Basic Resources index <.SXPP>, the top sector gainer.

A report on U.S. consumer prices showed underlying inflation moderated slightly in September, indicating it may take longer than expected for inflation to reach the Federal Reserve's target of 2 percent.

Fed Chair Janet Yellen said last Friday that the U.S. central bank could allow inflation to run above the target. The data may keep the Fed from raising interest rates in December as expected.

U.S. Treasury yields also fell in line with their UK counterparts on signs parliament will have to ratify Britain's exit from the European Union. British lawmakers are seen as less inclined to take a hard line on Brexit than Prime Minister Theresa May.

Benchmark U.S. 10-year Treasury notes fell 5/32 in price to yield 1.7485 percent.

MSCI's emerging market index rose 1.73 percent, its biggest gain in more than three months, backed by the Fed's expected slower rate of tightening and the bump in commodities prices.

The dollar <.DXY> was off its seven-month high against a basket of major currencies, but was flat overall on the day at 97.870.

Oil prices steadied as the dollar gave up early gains and expectations of output curbs by the Organization of the Petroleum Exporting Countries lifted crude prices despite forecasts for a second straight weekly build in U.S. crude stockpiles.

benchmark Brent added 16 cents to settle at $51.68, while U.S. crude rose 35 cents to settle at $50.29 a barrel.

(Reporting by Dion Rabouin; Editing by Nick Zieminski and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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