The major U.S (Other OTC: UBGXF – news). indexes were poised to notch their fourth straight positive weeks.
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At 11:04 a.m. ET (1504 GMT) the Dow Jones Industrial Average.DJI was down 15.51 points, or 0.08 percent, at 18,579.52. Corporate earnings likely weakened last quarter, for example, and the US economy is still growing at a weaker rate than before the Great Recession.
Stocks edged higher today-and the S&P 500 closed at a new record high-as all major indexes continued to build on their recent strength.
Southwestern Energy had the biggest gain in the S&P 500 after its better-than-expected earnings report. This also topped analysts’ estimates for $8.81bn.
The nine advancing S&P indexes were led by a more than 1 percent rise in telecom stocks and utilities. Southwest Airlines (LUV) posted a steep loss after reporting weaker than expected second quarter results.
The Dow is up 1,170 points, or 6.7 percent. The yield on the 10-year Treasury note, which moves in the opposite direction of its price, rose to 1.59 percent from 1.56 percent late Tuesday.
NOT SO SWEET: Honeywell International fell $5.42, or 4.6 percent, to lead industrial stocks lower. The company reported stronger earnings than analysts expected, but it lowered its forecast for full-year sales.
The Dow Jones Industrial Average closed up 0.29 percent to 18,750.85. The index also notched its first weekly gain for the first time since March. The S&P 500 has jumped just over 8 percent since hitting a bottom on June 27 after the United Kingdom voted to leave the European Union. Gold rose $9.40, or 0.7 percent, to $1,328 an ounce.
“For investors, the most important questions are: When is the recession coming, and am I paying too much for stocks?” said Linda Duessel, senior equity strategist at Federated Investors.
“Over the coming months, when we have more information, including new staff projections, we will be in a better position to reassess the underlying macroeconomic conditions, the most likely paths of inflation and growth, and the distribution of risks around those paths”, Draghi said.
Next week could be more exciting.
Investors will also be watching the Federal Reserve’s meeting next week for clues about when the USA central bank might next seek to raise interest rates. Record-low interest rates and big stimulus programs from central banks have pushed stocks higher since the financial crisis. “The economic narrative remains the same; the economy isn’t growing fast but it’s growing fast enough to cause the labor market to tighten”. The U.K.’s central bank left its benchmark refinancing rate at 0 percent and its interest rate on deposit facility at -0.40 percent. “Analysts brought down a lot of their estimates, but so far we’ve seen a lot of companies exceed that and it’s helped sustain the move in the market”.
Abbott Laboratories reported better-than-expected quarterly sales and profit, sending its shares up 2 per cent.
The Fed pulled rates off their record low in December but has held pat since then.
OVERSEAS: European markets were mixed.
In Europe, Stoxx 50 +1.2%, FTSE +0.5%, CAC +1.2%, DAX +1.6%.
ASIA’S DAY: Earlier, Japan’s Nikkei 225 fell 1.1 percent to 16,627.25 after the Bank of Japan governor, Haruhiko Kuroda, was cited ruling out direct cash injections to the economy.
WTI crude oil prices were off 2.4%, while Brent crude oil prices fell 2.3%. Wholesale gasoline fell 1 cent to $1.36 a gallon, heating oil rose 2 cents to $1.41 a gallon and natural gas fell 7 cents to $2.66 per 1,000 cubic feet.
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Precious and industrial metals prices ended lower. Boeing and Caterpillar fell 1 percent. It fell to $1.3094 from $1.3203. The dollar rose to 106.64 Japanese yen from 106.09 yen.
