Wall Street ended the day with a maximum of S&P and Nasdaq have thus brought back in black the monthly budget and the Dow is back above 17 thousand points. Investors have welcomed the latest set of quarterly results and an unexpected rise in US consumer confidence as they await tomorrow decisions of the Fed on interest rates.
In the end, the Dow marks a rise of 1.12% to 17,006 points, the Nasdaq gained 1.74% to 4,564 points, while the S&P 500 represents an increase of 1.19% to 1,985 points.
Oil has gone up slightly: the contract in December rose by 42 cents to $ 81.42 a barrel. The US government securities have finished with negative yields rising to 2.28% for the ten-year benchmark and 3.06% for the title thirty years. In the currency markets, euro slipped to $1.2735 while the dollar gained ground against yen at an altitude of 107.8.
European markets, which have done worse than the US stock market yesterday, recovered today, but analysts point to a return to the volatility. It was to be expected, as investors are now considering eventual increase in interest rates after the Federal Reserve kept the cost of borrowing at zero for several years now.
Alibaba, listed on the New York Stock Exchange on September 19, scored a respectable result, surpassing Wal-Mart, a global retail seller, in terms of market capitalizatihon. The Chinese e-commerce giant is also listed as one of the largest foreign companies listed on Wall Street. Alibaba, up 1.93% at just over $100 per share, has a market capitalization of 247.61 billion dollars, while Wal-Mart fell short of expectations at 245.17 billion. At this point, the Chinese company is within easy reach of the top ten world companies of greater value, behind the Swiss pharmaceutical giants Roche and Novartis. The title of Alibaba, quoted at $68 per share, earned 38% on the day of the debut and then continued to rise; in fact, up to now it exceed the threshold of $100.
On the macro front, the index measuring consumer confidence rose in October to 94.5 points. This is the highest level since October 2007. Economists had expected 87.2 points The September figure was revised upward from 86 to 89 points.
Orders for durable goods were disappointing and fell for the second month in a row in September, the monthly decline was 1.3%, the highest in eight months, versus an expected increase of 0.2% from the market. The data comes on the day that begins the meeting of the Federal Reserve, which tomorrow will announce its monetary policy decisions. The end of the third round of monetary easing, which is the plan for the purchase of Treasury bonds and mortgage, is taken for granted, while in the press they should use the word “significant” to indicate the length of time that interest rates will remain at historically low levels.
As for the housing, prices in the US rose 0.2% in August from the previous month and 5.6% year on year. The statistics published today reveal the Case Shiller index. The increase on an annual basis is slowest since November 2012. In July, the increase was 6.7%.
Meanwhile, the season of quarterly results continues. So far 80% of the companies listed on the S&P 500 that have released the financial results beat analysts’ earnings expectations, while 61% exceeded the estimates of revenues, according to numbers gathered by Bloomberg.
The equity figures show: Twitter leaves on the ground of premarket 10% after the quarterly statement yesterday: the microblogging site continues to be profitable but, on the disappointing side, there is a slowdown in the growth of users, which is why today the analysts of Stifel Nicolaus shifted to “sell” from “hold” recommendations on the stock.
Pfizer quarterly results, however, soar with a better than expected report, supported by growth in sales of its cancer drugs and the demand for drugs in the group in developing countries.
Amgen, rising as the largest group in the world of biotech, announced strong revenue and earnings expectations, even with net profit down due to a massive burden for renovation. The company raised its forecast for the full year and the number of job cuts that are expected to be made.
Whirlpool closed the third quarter with profits rising but lowered its full year profit estimates, citing the costs for the acquisition of Hefei Rongshida Indesit and Sanyo Electric. The title gives 2.2% in premarket.
Currency: euro vs. dollar at 1.2703 (+ 0.05%); dollar / yen JPY + 0.27% to 108.10. EUR / CHF at 1.2059 Swiss franc plate. EUR / JPY + 0.32% to 137.31 JPY.
Among the raw materials, crude oil futures + 0.41% to $ 81.33 a barrel; Gold $1,228.10 (-0.10%).