Tourists have their picture taken in front of the New York Stock Exchange (NYSE) on Jan. 20, 2105.
U.S. stocks rose for a third day as energy shares rallied and speculation grew that the European Central Bank will provide more stimulus.
Netflix Inc. jumped 18 percent as it posted subscriber growth that beat projections and said it will complete its global expansion within two years. Energy companies climbed 1.6 percent for a third day of gains. International Business Machines Corp. slipped 2.8 percent after its earnings forecast trailed some estimates. Qualcomm Inc. dropped 1.1 percent as people familiar with the matter said Samsung Electronics Co. will not use its chip in the next version of its smartphone.
The S&P 500 (SPX) rose 0.7 percent to 2,036.65 at 10:55 a.m. in New York. The Dow Jones Industrial Average added 64.06 points, or 0.4 percent, to 17,579.29. Trading in S&P 500 companies was 13 percent above the 30-day average for this time of the day.
“The initial move after an ECB stimulus announcement was always going to be up, but the real question is how long it’s going to last,” Matt Maley, an equity strategist at Miller Tabak & Co LLC in Newton, Massachusetts, said in a phone interview. “Earnings will take a backseat for the next few days, but they’ll be back in focus before long.”
Two euro-area central-bank officials said the ECB’s Executive Board has proposed quantitative easing of 50 billion euros ($58 billion) a month until the end of 2016.
The proposal will be discussed starting today by the ECB’s decision-making Governing Council, which could still change the design significantly, the people said, asking not to be identified as the proposal is confidential. Purchases won’t start before March 1, one of the people said.
ECB Governing Council member Ewald Nowotny said earlier that investors should not get carried away by one policy meeting. President Mario Draghi will probably announce a 550 billion-euro ($636 billion) program of quantitative easing, economists said in a Bloomberg survey before tomorrow’s meeting.
Data in the U.S. today showed new residential construction rose more than forecast in December, capping the best year since 2007 and signaling the industry will probably keep expanding this year.
Housing starts increased 4.4 percent to a 1.09 annual rate, following the prior month’s 1.04 million pace that was higher than previously estimated. Stocks Rally
The S&P 500 rose for a second day yesterday as technology shares rallied, paring its losses from a record on Dec. 29 to 3.3 percent. International investors have turned the most bullish on U.S. markets in more than five years amid concern over a worsening global economy, a poll showed. A majority of those surveyed by Bloomberg forecast that the S&P 500 will rise in the next six months, while only a quarter see it declining.
“Although investors are very edgy right now, U.S. equities still have a bit further to go,” said William Hobbs, head of equity strategy at Barclays Plc’s wealth-management unit in London. “The hurdle is just a little bit higher because there has been such a big consensus favoring the U.S. and sentiment is already pretty hot on growth. None of these markets are particularly inexpensive.”
The S&P 500 is trading at 16.6 times the projected earnings of its members, according to data compiled by Bloomberg. Valuations reached a five-year high at the end of last year. Profit at companies listed on the benchmark measure probably climbed 0.8 percent in the final three months of 2014, analysts predicted, down from an October estimate of 8.1 percent.
EBay Inc. and American Express Co. are among S&P 500 companies reporting financial results today.
To contact the reporters on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net; Joseph Ciolli in New York at jciolli@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Jeff Sutherland at jsutherlan13@bloomberg.net Jeff Sutherland, Namitha Jagadeesh
Netflix Inc. jumped 18 percent as it posted subscriber growth that beat projections and said it will complete its global expansion within two years. Energy companies climbed 1.6 percent for a third day of gains. International Business Machines Corp. slipped 2.8 percent after its earnings forecast trailed some estimates. Qualcomm Inc. dropped 1.1 percent as people familiar with the matter said Samsung Electronics Co. will not use its chip in the next version of its smartphone.
The S&P 500 (SPX) rose 0.7 percent to 2,036.65 at 10:55 a.m. in New York. The Dow Jones Industrial Average added 64.06 points, or 0.4 percent, to 17,579.29. Trading in S&P 500 companies was 13 percent above the 30-day average for this time of the day.
“The initial move after an ECB stimulus announcement was always going to be up, but the real question is how long it’s going to last,” Matt Maley, an equity strategist at Miller Tabak & Co LLC in Newton, Massachusetts, said in a phone interview. “Earnings will take a backseat for the next few days, but they’ll be back in focus before long.”
Two euro-area central-bank officials said the ECB’s Executive Board has proposed quantitative easing of 50 billion euros ($58 billion) a month until the end of 2016.
The proposal will be discussed starting today by the ECB’s decision-making Governing Council, which could still change the design significantly, the people said, asking not to be identified as the proposal is confidential. Purchases won’t start before March 1, one of the people said.
ECB Governing Council member Ewald Nowotny said earlier that investors should not get carried away by one policy meeting. President Mario Draghi will probably announce a 550 billion-euro ($636 billion) program of quantitative easing, economists said in a Bloomberg survey before tomorrow’s meeting.
Data in the U.S. today showed new residential construction rose more than forecast in December, capping the best year since 2007 and signaling the industry will probably keep expanding this year.
Housing starts increased 4.4 percent to a 1.09 annual rate, following the prior month’s 1.04 million pace that was higher than previously estimated. Stocks Rally
The S&P 500 rose for a second day yesterday as technology shares rallied, paring its losses from a record on Dec. 29 to 3.3 percent. International investors have turned the most bullish on U.S. markets in more than five years amid concern over a worsening global economy, a poll showed. A majority of those surveyed by Bloomberg forecast that the S&P 500 will rise in the next six months, while only a quarter see it declining.
“Although investors are very edgy right now, U.S. equities still have a bit further to go,” said William Hobbs, head of equity strategy at Barclays Plc’s wealth-management unit in London. “The hurdle is just a little bit higher because there has been such a big consensus favoring the U.S. and sentiment is already pretty hot on growth. None of these markets are particularly inexpensive.”
The S&P 500 is trading at 16.6 times the projected earnings of its members, according to data compiled by Bloomberg. Valuations reached a five-year high at the end of last year. Profit at companies listed on the benchmark measure probably climbed 0.8 percent in the final three months of 2014, analysts predicted, down from an October estimate of 8.1 percent.
EBay Inc. and American Express Co. are among S&P 500 companies reporting financial results today.
To contact the reporters on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net; Joseph Ciolli in New York at jciolli@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Jeff Sutherland at jsutherlan13@bloomberg.net Jeff Sutherland, Namitha Jagadeesh
No comments :
Post a Comment