Dow Industrials Surge on Earnings Reports from Caterpillar, 3M
24 Oktober 2017 - 4:11PM
Dow Jones News
By Georgi Kantchev
U.S. stocks opened higher Tuesday as investors took positions
ahead of several earnings reports and key central bank moves.
The Dow Jones Industrial Average gained 178 points, or 0.8%, to
23452 shortly after the opening bell. The S&P 500 added 0.2%,
and the Nasdaq Composite rose 0.1%.
The Stoxx Europe 600 index fell 0.3% after lower-than-expected
economic numbers, while bourses across Asia finished mostly
higher.
Investors were focused on the next batch of profit reports, with
nearly 200 companies in the S&P 500 on the week's earnings
calendar, according to FactSet. Strong results in previous
quarters, as well as solid economic growth around the world, have
underpinned stock markets and pushed them to record highs.
Dow components Caterpillar, 3M and McDonald's led the index
higher following strong earnings reports.
"It's a busy week for markets but risk assets continue to
perform," said Richard Benson, co-head of portfolio investments at
$18 billion fund Millennium Global Investments.
Central banks are another focus for investors this week. The
European Central Bank is set to announce changes to its massive
bond-buying program after its meeting Thursday. Economists expect
the ECB to reduce its monthly asset purchases, possibly by half,
but also to extend the program for a number of months into
2018.
Investors "need to exercise caution as markets enter a different
phase with less central bank support than has been the case over
the past decade," said David Simner, portfolio manager at Fidelity
International.
On Tuesday, IHS Markit said its composite Purchasing Managers
Index for the eurozone -- based on survey responses from
manufacturers and service providers -- fell to 55.9 in October from
56.7 in September. The index still points to solid growth, with 50
demarcating a rise from a contraction in output.
Also of interest to markets, U.S. President Donald Trump is
expected to unveil his pick for the new leader of the Federal
Reserve within the next 10 days from a roster of candidates that
include current Fed Chairwoman Janet Yellen. Late Monday, Mr. Trump
said he was "very, very close" to naming his choice.
A hawkish candidate might send U.S. Treasury yields higher and
boost the dollar, analysts say. Yields on 10-year U.S. Treasury
notes rose to 2.397% from 2.375%. Yields move inversely to
prices.
In currencies, the WSJ Dollar Index, which tracks the dollar
against a basket of 16 currencies, was up 0.1%. The euro was up
0.1% against the greenback at $1.1758.
In China, the Communist Party congress, which started last week,
is due to wrap up this week with President Xi Jinping expected to
consolidate his power further through a new lineup of the country's
leadership.
The Shanghai Composite Index finished up 0.2%. In Japan, the
Nikkei extended its record-setting streak of daily gains to 16 by
closing up 0.5%.
Oil futures rose, with the Brent global benchmark up 0.7% at
$57.75 a barrel. Gold was down, by 0.1%.
Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
October 24, 2017 09:56 ET (13:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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