Global Stocks Waver After Earnings-Driven Jump
24 April 2019 - 9:37AM
Dow Jones News
By Georgi Kantchev
Global stock markets paused Wednesday after strong earnings
propelled U.S. stocks to new highs.
In Europe, the Stoxx Europe 600 was down 0.1%. That followed
losses across most Asian markets.
Futures pointed to a broadly flat open for the S&P 500 and
the Dow Jones Industrial Average. The S&P 500 registered its
first record-high close of 2019 on Wednesday, while the Dow is
within less than a percentage point of an all-time high.
Strong earnings have boosted stocks this week, in a year marked
by a more accommodative Federal Reserve and a stable economy. The
rally marked a strong reversal from the fourth quarter of 2018 when
a selloff dragged the Nasdaq into bear-market territory and left
the S&P 500 teetering on the edge of ending its longest bull
run ever.
Analysts said Wednesday that concerns China may slow the pace of
policy easing following stronger-than-expected first-quarter growth
is dampening investor sentiment. Traders were also monitoring the
latest moves in trade negotiations between Beijing and Washington,
which are slated to restart next week.
More broadly, the focus remained on the strong earnings results
in recent days from companies like Twitter, aerospace giant
Lockheed Martin and industrial conglomerate United Technologies.
Investors have been looking to the earnings season for clues about
the strength of businesses and the economy.
"Earnings expectations were dialed down. It turns out things are
much better," said Randy Warren, chief investment officer of
Philadelphia-based Warren Financial. "Markets have the support to
go higher."
Of the 104 companies in the S&P 500 to report results so
far, 78% have beaten analysts' expectations, compared with about
65% in the fourth quarter, according to data from Refinitiv. The
bar is significantly lower, however, after steep downgrades to 2019
earnings forecasts in recent months.
The WSJ Dollar Index, which tracks the dollar against a basket
of 16 currencies, was up 0.2%. The 10-year U.S. Treasury yield was
down at 2.551% from 2.570% on Tuesday. Yields move inversely to
prices.
In Asia, Hong Kong's Hang Seng fell 0.5% while Japan's Nikkei
was down 0.3%.
In commodities, Brent crude, the global oil benchmark, was down
0.5%, while gold prices fell 0.1%.
Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
April 24, 2019 04:22 ET (08:22 GMT)
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