|Day's Range||2,631.26 - 2,653.19|
|52 Week Range||2,346.58 - 2,940.91|
NYSE chief operating officer John Tuttle speaks to Yahoo Finance at the World Economic Forum.
As Monday's data shows that there is a slowdown in China's economy, Harvard University’s Public Policy and Economics Professor Kenneth Rogoff says China is becoming a real problem.
The S&P 500, Dow Jones and Nasdaq indexes all opened higher, led by shares of consumer-products and information-technology companies, before trimming increases. White House Council of Economic Advisers Chairman Kevin Hassett said that if the partial government shutdown extends through March, there’s a chance of zero economic expansion this quarter, though “humongous” growth would follow once federal agencies reopen.
With about 15% of the S&P 500 having reported fourth-quarter earnings through Wednesday morning, the growth outlook from a year ago has increased slightly, but the outlook for the current quarter keeps slowing. The blended growth estimate for the S&P 500, which includes reported results and estimates of reports still to come, is 10.8%, compared with a 10.7% estimate on Jan. 18 and a 10.6% estimate as of Jan. 11, which was just before the start of earnings season. But the growth estimate for the first quarter has declined to just under 1% from 1.3% on Friday and 1.9% on Jan. 11. Meanwhile, the S&P 500 has gained 1.5% since Jan. 11.
Concerns ranging from slowing corporate and economic growth to faster rate hikes pushed the S&P 500 down as much as 19.8 percent by Christmas Eve and yanked $5 trillion from the value of U.S. equities. “The road to any potential June recovery is likely to be a bit rocky as the market’s trilogy of troubles (political brinkmanship, slowing growth, uncertain monetary policy) are not going to be resolved in a swift manner,” Bartolini said in a blogpost dated Jan. 15, adding that the path to recovery could take longer as U.S. economic growth is projected to decline in 2019 from a year ago.
Stocks rose Wednesday in a rebound from the previous session’s rout as earnings continue to roll in and investors watch continuing trade tensions between the U.S. and China.
The S&P 500 Index posted the biggest drop in almost three weeks on Tuesday while the Cboe Volatility Index jumped the most in a month. “I wouldn’t think the worst is behind us,” said Ian Samson, an investment analyst at Fidelity International.
U.S. stocks rose on Wednesday, as strong earnings from IBM, United Technologies and Procter & Gamble led a rebound for Wall Street from its second biggest decline in 2019. International Business Machines Corp jumped 8.78 percent and led the gains on the Dow Jones Industrial Average after the technology services company projected 2019 profit above expectations.
Shares of Qualcomm Inc. sank 3.0% toward an 8 1/2-month low in morning trade Wednesday, after short-seller Kerrisdale Capital took aim at the semiconductor maker, suggesting a downside of about 60% from current levels. Kerrisdale said its believes the Federal Trade Commission will win its case against Qualcomm, which would force Qualcomm to license its key cellular patents to potential competitors, such as Intel Corp. , on "fair, reasonable and non-discriminatory" (FRAND) terms, which Qualcomm had indicated in the past would destroy its licensing business. Assuming an FTC victory, Kerrisdale said the financial impact would imply a share price of $21.31, or 59.6% below current levels. The stock has shed 21% over the past three months while the PHLX Semiconductor Index has slipped 2.1% and the S&P 500 has edged 3.3% lower.
Despite today's early surge, the period of consolidation we have been expecting appears to have arrived on Tuesday and may continue for the short term. All of the major equity indices closed lower Tuesday with negative internals on lighter trading volume. Some cracks appeared on the charts as the S&P 500 (see above), DJIA and Nasdaq 100 (see below) closed below their short-term uptrend lines.
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Shares of Waters Corp. jumped 9.5% in morning trade Wednesday, and reached an all-time high of $224.59 in intraday trade, after the specialty measurement company reported better-than-expected fourth-quarter results and provided an upbeat full-year outlook. The company also announced a new $4 billion share repurchase program. The company swung to a net profit of $185 million, or $2.46 a share, in the latest quarter, from a loss of $353.2 million, or $4.44 a share, in the same period a year ago, which included a $550 million negative impact from new tax legislation. Excluding non-recurring items, adjusted earnings per share came to $2.87, above the FactSet consensus of $2.64. Sales grew 4% to $715.0 million, beating the FactSet consensus of $702.7 million. Looking ahead, the company expects 2019 adjusted EPS of $9.20 to $9.45, compared with the FactSet consensus of $9.18. The stock has run up 23% over the past three months, while the S&P 500 has slipped 3.3%.
Stocks opened higher Wednesday, taking back a chunk of the previous day's decline, as investors cheered upbeat earnings as fourth-quarter corporate results continue to roll in. The S&P 500 rose 0.5% to 2,645.39, while the Dow Jones Industrial Average advanced 222 points, or 0.9%, to 24,626. The Nasdaq Composite gained 38 points, or 0.5%, to 7,058. International Business Machines led Dow gainers, jumping 6.5% after its earnings and outlook topped expectations. Dow components Procter & Gamble Co. , up 6.4%, and United Technologies, up 6.1%, were also on the rise after earnings.
United Technologies Corp rose 4.3 percent after the industrial conglomerate reported a better-than-expected profit and forecast 2019 earnings above estimates, boosted by acquisition of aero parts maker Rockwell Collins. Fellow industrial companies in the Dow, Boeing Co, Caterpillar Inc and 3M Co rose between 0.2 percent and 0.9 percent. The gains follow Wall Street's more than 1 percent loss on Tuesday as worries about slowing global growth came to the fore after a gloomy economic outlook from the International Monetary Fund, signs of further cooling in China's economy and mixed reports on U.S.-China trade talks.
AdvisorShares CEO Noah Hamman says “taking an active approach to how you manage your money is critically important in the environment we’re heading into.” Yahoo Finance’s Alexis Christoforous speaks to him.