BNN Bloomberg's closing bell update: Jan. 28, 2020
U.S. stocks climbed the most since October on speculation that efforts to contain the coronavirus will prevent a major economic fallout.
The S&P 500 Index rebounded from its worst sell-off in four months, with technology shares leading the charge. Some of the companies that suffered the biggest losses during the latest equity rout, such as chipmakers, casino operators and airlines, advanced on Tuesday. Demand for havens cooled, sending Treasuries and gold lower. After the close of regular trading, Starbucks Corp. reported earnings that beat analyst estimates.
Equities rallied after a slide that wiped about US$1.5 trillion off the value of world stocks since Jan. 20. As it’s too early to assess the full impact of the deadly virus, traders digested some positive readings on U.S. consumer confidence and home prices. With earnings continuing to roll in, investors will be looking for signs of how the disease is affecting operations in China.
“We kind of stall a little bit on the Chinese recovery, but we have a lot of other things going in favor of a global recovery anyway,” Stephen Auth, chief investment officer of equities at Federated Investors, told Bloomberg TV. “We still think that’s coming.”
Some corporate highlights:
PulteGroup Inc. climbed after reporting better-than-expected quarterly orders.
Lockheed Martin Corp. rose on sales that beat the highest estimate.
Acceleron Pharma Inc. surged on mid-stage results for its medicine aimed at treating a type of lung and heart disorder.
3M Co. sank after revealing it had received a grand jury subpoena in an environmental probe and saying it would cut 1,500 jobs.
Harley-Davidson Inc. slid after quarterly profit missed estimates.
Pfizer Inc. tumbled as a drop in sales overshadowed the company’s projections for a better-than-feared 2020.
Here are some events to watch out for this week:
Wednesday brings reports from GE, Boeing and Facebook; Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.
Federal Reserve policy makers on Wednesday are expected to open 2020 the same way they closed 2019 -- by holding rates steady.
Goldman Sachs will hold its first-ever Investor Day on Wednesday.
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 the main moves in markets:
The S&P 500 climbed 1 per cent as of 4 p.m. New York time.
The Stoxx Europe 600 Index rose 0.8 per cent.
The MSCI Emerging Market Index was little changed.
The Bloomberg Dollar Spot Index decreased 0.1 per cent.
The euro was unchanged at US$1.1019.
The Japanese yen weakened 0.2 per cent to 109.14 per dollar.
The yield on 10-year Treasuries rose four basis points to 1.65 per cent.
Germany’s 10-year yield climbed four basis points to -0.34 per cent.
Britain’s 10-year yield jumped four basis points to 0.552 per cent.
The Bloomberg Commodity Index advanced 0.1 per cent.
West Texas Intermediate crude rose to US$53.48 a barrel.
Gold decreased 0.5 per cent to US$1,575.80 an ounce.