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U.S. Stocks Rise After Fed With Earnings in Focus: Markets Wrap

Published 01/30/2020, 03:07 AM
Updated 01/30/2020, 03:29 AM
U.S. Stocks Rise After Fed With Earnings in Focus: Markets Wrap
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(Bloomberg) -- U.S. stocks climbed as the Federal Reserve signaled it will remain on hold and after a flurry of solid earnings from bellwethers.

The S&P 500 Index held on to to its gains after the central bank signaled policy is “appropriate to support sustained expansion of economic activity.” Strong results from Apple Inc (NASDAQ:AAPL). and General Electric (NYSE:GE) Co. pushed equities higher, with the iPhone maker surging to a record. Boeing (NYSE:BA) Co. rallied on news the planemaker burned less cash than expected. Treasury yields slid, while the dollar rose.

Fed Leaves Main Rate Unchanged, Saying Policy Is Appropriate

Markets have calmed somewhat from the coronavirus’ initial blow as the earnings season continued to roll in. With the highly anticipated Fed decision, investors have shifted their focus to corporate signals on how the viral outbreak may affect their operations. Heavyweights including Facebook Inc (NASDAQ:FB)., Microsoft Corp (NASDAQ:MSFT). and Tesla (NASDAQ:TSLA) Inc. report results after the close.

Some other corporate highlights:

  • McDonald’s Corp.’s sales in its home market beat expectations.
  • Mastercard Inc (NYSE:MA)., Dow Inc. and T. Rowe Price Group Inc. reported better-than-estimated results.
  • AT&T Inc. topped earnings estimates as cost cuts helped offset steep TV-subscriber losses and higher spending on its media business.
  • EBay Inc., Advanced Micro Devices (NASDAQ:AMD) Inc. and Xilinx Inc (NASDAQ:XLNX). gave lackluster guidance.
  • At its first-ever investor day, Goldman Sachs Group Inc (NYSE:GS). set a goal for return on equity of more than 13% in the next three years.
Elsewhere, oil fell after a government report showed the biggest jump in U.S. crude stockpiles since November. The European Parliament approved Prime Minister Boris Johnson’s Brexit deal, clearing the way for the U.K. to leave the EU on Jan. 31 with an agreement that, for the time being, will avoid a chaotic rupture. The pound remained lower.

Here are some events to watch out for this week:

  • Samsung Electronics (KS:005930), International Paper, Unilever (LON:ULVR) and Shell (LON:RDSa) report on Thursday, followed by South Korean chip maker SK Hynix, Chevron (NYSE:CVX), Caterpillar (NYSE:CAT) and Exxon Mobil (NYSE:XOM) all on Friday.
  • The Bank of England meeting on Thursday is highly anticipated after a series of dovish comments raised speculation policy makers could lower interest rates.
  • The U.S. reports fourth-quarter GDP Thursday.
  • The U.K. is scheduled to leave the European Union Friday.
These are some of the main moves in markets:

Stocks

  • The S&P 500 rose 0.5% as of 2:05 p.m. New York time.
  • The Stoxx Europe 600 Index climbed 0.4%.
  • The MSCI Emerging Market Index fell 0.3%.
Currencies

  • The Bloomberg Dollar Spot Index climbed 0.1%.
  • The euro dipped 0.2% to $1.0999.
  • The Japanese yen weakened 0.1% to 109.22 per dollar.
Bonds

  • The yield on 10-year Treasuries dipped four basis points to 1.62%.
  • Germany’s 10-year yield fell four basis points to -0.38%.
  • Britain’s 10-year yield decreased four basis points to 0.516%.
Commodities

  • The Bloomberg Commodity Index dipped 0.6%.
  • West Texas Intermediate crude decreased 0.4% to $53.24 a barrel.
  • Gold fell 0.1% to $1,574.80 an ounce.

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