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

 


While you were sleeping: Pfizer, Eli Lilly lift mood

While you were sleeping: Pfizer, Eli Lilly lift mood

Jan 30 (BusinessDesk) – Better-than-expected profit outlooks from drug makers Pfizer and Eli Lilly bolstered Wall Street, while a rise in US home prices also underpinned optimism that the economic recovery is kicking into gear.

Shares of Pfizer gained, last up 3.1 percent, after the company predicted 2013 profit that surpassed expectations. So did Eli Lilly, boosting its shares 3.8 percent.

Of the 174 companies in the S&P 500 that have reported earnings this season, 68.4 percent have been above analyst expectations, according to Thomson Reuters data.

There was bright news on US house prices, which posted their biggest annual gain since 2006. The S&P/Case Shiller composite index of 20 metropolitan areas increased 0.6 percent in November on a seasonally adjusted basis, and jumped 5.5 percent year over year, the most since August 2006.

"What we're seeing is really a gradual improvement in the overall economy," Anthony Chan, chief economist for Chase Private Client in New York, told Reuters.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.52 percent, while the Standard & Poor's 500 Index gained 0.12 percent. The Nasdaq Composite Index slipped 0.10 percent. Earlier the Dow rose as high as 13,954.04, the highest level in five years.

And that optimism also helped fuel a gain in oil prices to the highest level in four months.

"We’re pricing in a lot of economic optimism,” Mike Wittner, head of oil-market research for the Americas at Societe Generale in New York, told Bloomberg News. “The underlying macroeconomic picture looks solid and that’s good for demand.”

Even so, consumer confidence slumped in January, declining to the lowest level since November 2011, with the Conference Board’s index sliding to 58.6 this month, from a revised 66.7 in December.

It wasn't all good news on the earnings front either. Shares of VMware plunged, last down 20.9 percent, after the software maker predicted first-quarter revenue that fell short of expectations.

Seagate also missed the mark in its revenue outlook, sending its shares 9.5 percent lower.

US Federal Reserve policy makers began a two-day meeting today.

“The Fed meeting will be as always very closely watched,” Hank Smith, who helps oversee US$6.5 billion as chief investment officer of Haverford Trust told Bloomberg. “The market’s going to be very curious and read into any commentary as to if the Fed lets on as to when this non-traditional easing will start to end.”

In Europe, the Stoxx 600 Index ended the day with a 0.3 percent advance from the previous close. It's at the highest level in nearly two years. Stocks in London, Frankfurt, and Paris also gained, rising 0.7 percent, 0.2 percent and 0.1 percent respectively.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news