Business

Stocks gain as upbeat Wall St earnings lift outlook

3 minute read

Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach/File Photo

Register now for FREE unlimited access to Reuters.com
  • S&P 500 and Dow reach record highs
  • Central bank meetings, data later in week add risk
  • WTI touches highest since Oct 2014, Brent hits three-year high

NEW YORK, Oct 25 (Reuters) - Global stocks rose and Treasury yields dipped on Monday with major Wall Street benchmarks hitting fresh records, buoyed by a robust start to the U.S. corporate earnings season and an improving economic outlook.

A large proportion of S&P 500 companies are due to report results this week, including technology heavyweights Facebook (FB.O), Apple Inc (AAPL.O), Amazon (AMZN.O), Microsoft (MSFT.O), and Alphabet (GOOGL.O), which have been the drivers of the market rally this year.

The Dow Jones Industrials and S&P 500 closed at record highs on Monday as traders looked ahead to earnings reports.

Register now for FREE unlimited access to Reuters.com

"The number one thing is that earnings are better-than-expected and what's more interesting is that as we approach the end of the year, we're going to see forward guidance being lifted, which would make the market multiple more reasonable," said Thomas Hayes, chairman of Great Hill Capital in New York.

The MSCI world equity index (.MIWD00000PUS), which tracks shares in 50 countries, rose 0.28%, while the pan-European STOXX 600 (.STOXX) index gained 0.07%.

In choppy trading on Monday, U.S. Treasury yields were lower as uncertainty about when the Federal Reserve would raise rates to curb rising inflation weighed on market sentiment.

The benchmark U.S. 10-year yield fell to 1.6325%. Last week, the 10-year yield hit 1.705%, the highest since mid-May.

The U.S. dollar rose from a one-month low on Monday, ahead of central bank meetings and economic data coming later this week, boosted by the prospect of a tighter U.S. monetary policy. The dollar index was up 0.178% at 93.828. read more

On Wall Street, the group of stocks with the highest gains were consumer discretionary, industrials, communication services and technology stocks.

A string of solid quarterly earnings reports this month, including J.P. Morgan Chase & Co (JPM.N) and Goldman Sachs Group Inc (GS.N) and insurer Travelers Cos Inc (TRV.N), have boosted market expectations.

Tesla, which jumped 12.66% and breached $1 trillion in market capitalization, also provided the biggest boost to the S&P 500 and the Nasdaq.

The Dow Jones Industrial Average (.DJI) rose 0.18% to 35,741.15, the S&P 500 (.SPX) gained 0.47% to 4,566.48 and the Nasdaq Composite (.IXIC) added 0.9, to 15,226.71.

Oil prices rose on Monday and reached multi-year highs, as tight global supply and strengthening fuel demand in the United States and beyond supported prices. read more

Brent crude futures gained 0.43% to $85.90 a barrel, while the U.S. West Texas Intermediate (WTI) crude futures pared earlier gains and traded lower at 0.06% to $83.71 a barrel in early afternoon trading.

Gold prices rose nearly 1% on Monday, as a retreat in U.S. bond yields and persistent worries about inflation lifted the safe-haven asset ahead of major central bank meetings this week.

Spot gold gained 0.85% to $1,807.7102 per ounce, while U.S. gold futures for December delivery settled up 0.6% at $1,806.80 per ounce.

Register now for FREE unlimited access to Reuters.com
Reporting by Chibuike Oguh; editing by David Evans and Sam Holmes

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters