U.S. Stocks Soar as Ukraine Tensions Calms Amid Profits
April 18, 2014 2:30 am
U.S. stocks bolster, pushing the Standard & Poor’s 500 Index to its best performing week since July, as profits from General Electric Co. and Morgan Stanley topped projections and concern eased that the Ukraine crisis may get worse.
GE spiked 1.7 percent higher after results surpassed estimates. Morgan Stanley climbed 2.9 percent as an increase in trading revenue aided earnings surpass projections. Google Inc. and International Business Machines Corp. backslide at least 3.3 percent as sales trailed estimates.
The S&P 500 inched up 0.1 percent to 1,864.85 at 4 p.m. in New York, continuing its increase for the week to 2.7 percent. The Dow Jones Industrial Average dive down 16.31 points, or 0.1 percent, to to 16,408.54. IBM, which accounts for 7.4 percent of the Dow, took 41 points off the index’s total today. About 6.2 billion shares were traded on U.S. exchanges, 8.6 percent under the three-month average.
“Any deceleration of the conflict will be a relief for the market,” Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co., said in a phone interview. “Combine the ease of the tension between Russia and Ukraine and generally a positive tone of earnings, the result is an upward drifting market.”
Equities skyrocket after four-way discussions on the dispute in Ukraine ended with an accord aimed at taking the first steps toward de-escalating the conflict after President Vladimir Putin said he hopes he won’t have to send troops.
Discussion in Geneva today between Russian Foreign Minister Sergei Lavrov, his Ukrainian counterpart, Andriy Deshchytsia, U.S. Secretary of State John Kerry and Catherine Ashton, the European Union’s foreign-policy chief, went on for over six hours, lengthier than scheduled.
Profits Projection
The S&P 500 spike higher each day this week to delete its sag down for the year. The gauge plummeted 2.7 percent last week, the biggest since 2012.
Twenty-five firms in the S&P 500 report profits today. Earnings per share for the index’s constituents possibly appreciated 0.7 percent in the first quarter, according to analyst projection gathered by Bloomberg. Analysts estimated a development of 6.6 percent at the start of the year.
“The market, with the sell-off and some downward revisions to estimates, maybe set itself for better reactions to earnings than it might have been the case earlier,” Gerry Paul, chief investment officer of U.S. value equities at AllianceBernstein LP in New York, said by phone. The firm oversees $454 billion. “Broadly, what we’re going to learn from earnings is that we’re pretty march on the trajectory of what the market expect it to be on.”
Unemployment Claims
Fewer Americans than projected filed applications for jobless benefits last week, an indication the labor market continues to advance. Unemployment claims skyrocketed by 2,000 to 304,000 in the week ended April 12 from a revised 302,000 the prior period that was the weakest since September 2007, a Labor Department report revealed.
The Chicago Board Options Exchange Volatility Index (VIX), the meter for U.S. stock volatility known as the VIX, slumped 5.8 percent to 13.36. The measure has relinquished 22 percent this week, the most since January 2013.
Seven of 10 S&P 500 industries climbed as energy and industrial firms each soar 0.8 percent hike for the best performance.
Expanding Margins
GE rose 1.7 percent to $26.56. The firm recorded first-quarter profits that topped analysts’ projections, buoyed by expanding margins in the industrial businesses that make products such as jet engines.
Morgan Stanley skyrocketed 2.9 percent to $30.76. First-quarter net income jumped to 74 cents a share from 48 cents a year earlier, the bank said. Excluding an accounting gain tied to the company’s own debt, earnings from continuing operations was 68 cents a share, surpassing the 60-cent average projection of analysts surveyed by Bloomberg.
The Philadelphia Semiconductor Index bolstered 1.9 percent, the largest hike in a month. Micron Technology Inc., the biggest U.S. maker of memory chips, jumped 6.4 percent to $23.91.
SanDisk Corp. leap 9.4 percent to $82.99 for the largest surge in the S&P 500. The maker offlash memory for mobile devices increased its projection for gross margin this year to between 47 percent and 49 percent. That’s up from its previous guidance scope of between 45 percent to 48 percent and in comparison with analysts’ projection that call for 47.4 percent.
Google, IBM
Google’s Class C shares pulled back 3.7 percent to $536.10. The owner of the biggest search engine said revenue, excluding sales passed on to partners, totaled $12.2 billion in the first quarter. It didn’t reach the estimated number by analysts for $12.3 billion.
IBM gave up 3.3 percent to $190.01. The firm said first-quarter revenue retreated 3.9 percent from a year earlier to $22.5 billion. That missed the average projection of analysts that called for $22.9 billion.
UnitedHealth Group Inc. tumbled 3.1 percent to $75.78 for its weakest day since October. The largest U.S. health insurer said first-quarter earnings surrendered 7.8 percent. It has derived progress from Medicare and has the largest program among publicly exchanged insurers, with 3 million enrollees. In April, the government implemented a second round of trim downs to Medicare Advantage.
The material has been provided by InstaForex Company – www.instaforex.com
U.S. stocks bolster, pushing the Standard & Poor’s 500 Index to its best performing week since July, as profits from General Electric Co. and Morgan Stanley topped projections and concern eased that the Ukraine crisis may get worse.
GE spiked 1.7 percent higher after results surpassed estimates. Morgan Stanley climbed 2.9 percent as an increase in trading revenue aided earnings surpass projections. Google Inc. and International Business Machines Corp. backslide at least 3.3 percent as sales trailed estimates.
The S&P 500 inched up 0.1 percent to 1,864.85 at 4 p.m. in New York, continuing its increase for the week to 2.7 percent. The Dow Jones Industrial Average dive down 16.31 points, or 0.1 percent, to to 16,408.54. IBM, which accounts for 7.4 percent of the Dow, took 41 points off the index’s total today. About 6.2 billion shares were traded on U.S. exchanges, 8.6 percent under the three-month average.
“Any deceleration of the conflict will be a relief for the market,” Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co., said in a phone interview. “Combine the ease of the tension between Russia and Ukraine and generally a positive tone of earnings, the result is an upward drifting market.”
Equities skyrocket after four-way discussions on the dispute in Ukraine ended with an accord aimed at taking the first steps toward de-escalating the conflict after President Vladimir Putin said he hopes he won’t have to send troops.
Discussion in Geneva today between Russian Foreign Minister Sergei Lavrov, his Ukrainian counterpart, Andriy Deshchytsia, U.S. Secretary of State John Kerry and Catherine Ashton, the European Union’s foreign-policy chief, went on for over six hours, lengthier than scheduled.
Profits Projection
The S&P 500 spike higher each day this week to delete its sag down for the year. The gauge plummeted 2.7 percent last week, the biggest since 2012.
Twenty-five firms in the S&P 500 report profits today. Earnings per share for the index’s constituents possibly appreciated 0.7 percent in the first quarter, according to analyst projection gathered by Bloomberg. Analysts estimated a development of 6.6 percent at the start of the year.
“The market, with the sell-off and some downward revisions to estimates, maybe set itself for better reactions to earnings than it might have been the case earlier,” Gerry Paul, chief investment officer of U.S. value equities at AllianceBernstein LP in New York, said by phone. The firm oversees $454 billion. “Broadly, what we’re going to learn from earnings is that we’re pretty march on the trajectory of what the market expect it to be on.”
Unemployment Claims
Fewer Americans than projected filed applications for jobless benefits last week, an indication the labor market continues to advance. Unemployment claims skyrocketed by 2,000 to 304,000 in the week ended April 12 from a revised 302,000 the prior period that was the weakest since September 2007, a Labor Department report revealed.
The Chicago Board Options Exchange Volatility Index (VIX), the meter for U.S. stock volatility known as the VIX, slumped 5.8 percent to 13.36. The measure has relinquished 22 percent this week, the most since January 2013.
Seven of 10 S&P 500 industries climbed as energy and industrial firms each soar 0.8 percent hike for the best performance.
Expanding Margins
GE rose 1.7 percent to $26.56. The firm recorded first-quarter profits that topped analysts’ projections, buoyed by expanding margins in the industrial businesses that make products such as jet engines.
Morgan Stanley skyrocketed 2.9 percent to $30.76. First-quarter net income jumped to 74 cents a share from 48 cents a year earlier, the bank said. Excluding an accounting gain tied to the company’s own debt, earnings from continuing operations was 68 cents a share, surpassing the 60-cent average projection of analysts surveyed by Bloomberg.
The Philadelphia Semiconductor Index bolstered 1.9 percent, the largest hike in a month. Micron Technology Inc., the biggest U.S. maker of memory chips, jumped 6.4 percent to $23.91.
SanDisk Corp. leap 9.4 percent to $82.99 for the largest surge in the S&P 500. The maker offlash memory for mobile devices increased its projection for gross margin this year to between 47 percent and 49 percent. That’s up from its previous guidance scope of between 45 percent to 48 percent and in comparison with analysts’ projection that call for 47.4 percent.
Google, IBM
Google’s Class C shares pulled back 3.7 percent to $536.10. The owner of the biggest search engine said revenue, excluding sales passed on to partners, totaled $12.2 billion in the first quarter. It didn’t reach the estimated number by analysts for $12.3 billion.
IBM gave up 3.3 percent to $190.01. The firm said first-quarter revenue retreated 3.9 percent from a year earlier to $22.5 billion. That missed the average projection of analysts that called for $22.9 billion.
UnitedHealth Group Inc. tumbled 3.1 percent to $75.78 for its weakest day since October. The largest U.S. health insurer said first-quarter earnings surrendered 7.8 percent. It has derived progress from Medicare and has the largest program among publicly exchanged insurers, with 3 million enrollees. In April, the government implemented a second round of trim downs to Medicare Advantage.
The material has been provided by InstaForex Company – www.instaforex.com
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