Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: US tech earnings in focus

World Week Ahead US tech earnings in focus

By Margreet Dietz

Jan 21 (BusinessDesk) – US corporate earnings will take centre stage with Apple, Microsoft, IBM and Google among those scheduled to release in the coming days.

So far, about 72 percent of the 67 S&P 500 companies which have reported quarterly results beat analysts' forecasts, according to Bloomberg News.

Results from General Electric and Morgan Stanley were among those that pleased investors on Friday, while shares of Intel copped a beating, reporting sagging sales after the market closed on Thursday.

After a weak start, Wall Street found momentum in the second half of last week that lifted it to five-year highs as the latest signs on earnings and the US economy proved positive, or at least better than expected, while House Republicans said they will agree to a temporary lift in the nation's debt ceiling.

The vote on a three-month extension to the US$16.4 trillion borrowing limit—set to be surpassed sometime from mid-February to early March¸ according to the Treasury Department—will take place on Wednesday.

The debt-ceiling vote is part of a rethink by House Republicans to get Senate Democrats onside with a budget that details spending cuts.

“We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem,” Speaker John Boehner said in a statement late last week.

In the past week, the Dow Jones Industrial Average gained 1.2 percent, the Standard & Poor's 500 Index rose 0.9 percent, while the Nasdaq Composite Index advanced 0.3 percent. Both Dow and S&P 500 finished the week at their highest level in five years.

And equities seem to be extending their appeal when compared against fixed-income securities.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," Stephen Massocca, managing director at Wedbush Morgan in San Francisco, told Reuters. "You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

On Monday, US markets are closed for the Martin Luther King Jr holiday. In Washington on Sunday, President Obama will take the oath of office to mark the official start of his second four-year term.

On the economic front, the coming days will see reports on the housing market—existing home sales on Tuesday, the FHFA house price index on Wednesday and new homes sales on Friday.

Other data include the Chicago Fed national activity index and the Richmond Fed manufacturing index, both due Tuesday, as well as the PMI manufacturing index flash and leading indicators, both due Thursday.

In Europe, the Stoxx 600 Index edged less than 0.1 percent lower last week. The World Bank predicted another contraction for the euro-zone economy this year, while Germany downgraded its expectations for growth of Europe's largest economy in 2013.

Euro zone finance ministers are set to gather for their first meeting of 2013 on Monday with Dutch finance minister Jeroen Dijsselbloem poised to become president of the Eurogroup.

Policy makers at the Bank of Japan are meeting this week and are expected to announce further measures to halt deflation which may include open-ended asset purchases. In anticipation, the yen last week slid further against both the euro and the greenback.

"Expectations are nearly universal for a shift from a 1 percent to a 2 percent inflation target, including upsized [asset buying] measures," Dan Dorrow, head of research at FX broker Faros Trading in Stamford, Connecticut, told Reuters. "Prime Minister [Shinzo] Abe and the political class as a whole have a very compelling need to push BoJ into a regime change and keep it there. The political pressure on the BoJ will not abate."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news