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

 

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news