Wednesday, 8 February 2017
US equities to extend gains; Crude inventories in focus
US stock indexes ended green on Tuesday as market players focused on positive corporate earnings and energy prices extended losses amid political concerns and increasing US output.
The Nasdaq composite and the Dow Jones industrial average were able to reach new all-time highs during Tuesday’s session. The S&P 500 posted a minimum gain by the end of trades, as energy components lost more than 1 percent.
- Dow Jones Industrial Average: +0.19 percent / 20,090.29 points
- Standard & Poor’s 500: +0.02 percent / 2,293.08 points
- Nasdaq Composite: +0.19 percent / 5674.22 points
On Tuesday, Disney stocks plunged more than 1 percent following disappointing first-quarter earnings. The entertainment company reported $1.55 a share on revenue of $14.78 billion while markets anticipated a $1.49 a share on revenue of $15.26 billion. Returns from the television and cinema divisions were 4 and 7 percent below expectations.
Another company with lower-than-expected earnings was Mondelez International. According to data, the company paid $0.47 earnings per share for the first-quarter of the year, with analysts pointing at $0.49. Revenue for the period came in at $67.70 billion against $68.65 billion seen.
However, not everything was bad news. General Motors earnings came in above expectations at $1.28 per share on revenue of $43.91 billion. Traders had forecasted $1.17 per share on revenue of $41.53 billion.
On the data front, the US Commerce Department said trade balance came in at -$44.30 billion against a -$45.00 billion estimation. The trade deficit was up by 0.4 percent in December. Also, job openings were below expectations at 5.501 million vs 5.568 initially estimated.
The US Energy Information Administration will release its weekly crude oil stockpiles at 15:30 GMT, with economists predicting a 2.529 million-barrel build in the week ended February 3. On Tuesday, the American Petroleum Institute said crude inventories increased by a mind blowing 14.227 million barrels last week.