Bloomberg: Stocks rose as better-than-estimate earnings and economic data eclipsed fears that inflationary pressures and supply chain grunts could weigh on growth.
All the major groups in the S&P 500 made progress. Bank of America Corp. climbed after beating analysts’ earnings estimates as fees rose in its trading unit. Morgan Stanley, Wells Fargo & Co. and Citigroup Inc. also reported strong results. Chipmakers rallied around strong forecasts from Taiwan Semiconductor Manufacturing Co., while UnitedHealth Group Inc. led the gains in the Dow Jones Industrial Average as the healthcare giant raised its outlook for the year.
U.S. state unemployment claims have fallen to their lowest since March 2020, showing employers are clinging to their workers in a tight labor market. Prices paid to US producers rose at the slowest pace of the year amid falling service costs. The PPI has increased steadily in 2021, as supply network disruptions and constraints, including material and labor shortages, drive up costs.
âEquity investors have become more cautious over the past two months,â said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But we believe those concerns will subside in the coming months and that the third quarter US earnings season could help investors put supply chain risks into perspective.”
Smart stocks have recently taken the wrath of rising bond yields, but major players in the sector could benefit from a boost from investors looking for companies that can pass the higher costs on to clients. Bank of America analysts present market leaders such as ASML Holding NV, Soitec, Infineon Technologies AG and ASM International NV as best placed to withstand inflationary pressures, given the lack of alternative suppliers.
Some other highlights of the company:
Walgreens Boots Alliance Inc.’s fourth quarter earnings and sales exceeded estimates as the Covid-19 pandemic and the vaccination campaign in the United States continued to have a powerful effect on the results of the giant. pharmacy.
Beyond Meat Inc. surged after McDonald’s Corp. confirmed to have tested a hamburger created with the developer of vegetable protein products.
Domino’s Pizza Inc. reported third quarter revenue that missed the analyst average estimate.
Here are some events to watch this week:
Goldman Sachs Group Inc. Reports Results Friday
US Business Inventories, University of Michigan Consumer Sentiment, Friday Retail Sales
Some of the main movements in the markets:
The S&P 500 rose 1% at 9:53 a.m. New York time
The Nasdaq 100 rose 1.3%
The Dow Jones Industrial Average rose 1%
The Stoxx Europe 600 is up 1.1%
The MSCI World index increased by 1%
The Bloomberg Dollar Spot Index changed little
The euro was little changed at $ 1.1596
The British pound rose 0.3% to $ 1.3699
The Japanese yen fell 0.3% to 113.62 per dollar
The yield on 10-year treasury bills was little changed at 1.54%
German 10-year yield fell five basis points to -0.18%
UK 10-year yield fell four basis points to 1.05%
West Texas Intermediate crude rose 0.4% to $ 80.75 a barrel
Gold futures rose 0.1% to $ 1,796.60 an ounce