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: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news