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

 


While you were sleeping: American Express rallies

Friday 21 April 2017 07:11 AM

While you were sleeping: American Express rallies

By Margreet Dietz

April 21 (BusinessDesk) - Wall Street climbed, bolstered by better-than-expected corporate earnings such as from American Express.

In 2.23pm trading in New York, the Dow Jones Industrial Average rallied 1 percent, while the Nasdaq Composite Index also climbed 1 percent. In 2.08pm trading, the Standard & Poor’s 500 Index gained 0.9 percent.

US Treasuries, meanwhile, declined, pushing yields on the benchmark 10-year note two basis points higher to 2.23 percent.

Gains in shares of American Express and those of Goldman Sachs, recently up 5.5 percent and 1.8 percent respectively, led the Dow higher.

American Express reported a smaller-than-expected decline in quarterly profit and revenue.

“Our first quarter performance marks a good start to the year with momentum in the consumer and commercial businesses in the US and in key markets internationally,” Kenneth Chenault, chief executive officer, said in a statement. “The results reflect many of the investments we’ve been making to grow the business, plus continued progress in reducing operating expenses.

Of the 82 companies in the S&P 500 that have reported earnings through Thursday afternoon, about 75 percent have topped expectations, above the 71 percent average for the past four quarters, Reuters reported.

"As we see a steady stream of earnings, on balance the season has been better and that's helping the market today,” Art Hogan, chief market strategist at Wunderlich Securities in New York, told Reuters.

Bucking the trend were shares of Travelers and those of Verizon, recently down 1.5 percent and 0.9 percent respectively, for the largest percentage drops in afternoon trading in the Dow.

Shares of Verizon fell after the company posted its first quarterly decline of subscribers.

Investors are closely monitoring pending elections in France and geopolitical tensions.

“This political uncertainty’s not going away for a while,” Ben Kumar, a London-based investment manager at Seven Investment Management, told Bloomberg. “Markets are trying to get their heads around whether that will actually affect company earnings.”

Europe's Stoxx 600 Index finished the session with a 0.2 percent increase from the previous close. The UK’s FTSE 100 Index added 0.1 percent, as did Germany’s DAX Index, while France’s CAC40 Index advanced 1.5 percent.

Recent polls showed increased support for French presidential candidate Emmanuel Macron ahead of the first round of voting on Sunday.

The CAC 40 is “moving higher on the belief that Emmanuel Macron will make it into the final vote this weekend, and as such win the French Presidency in a run off with one or the other of Marine Le Pen or Jean-Luc Melenchon, neither of whom are viewed as particularly market friendly,” Michael Hewson, an analyst at CMC Markets in London, wrote in a note, Bloomberg reported.

(BusinessDesk)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news