Market Update from Yahoo Finance: January 17, 2019


US equities rose, according to a Wall Street Journal report, that US officials are considering a tariff reduction on Chinese imports.

The S & P 500 (^ GSPC) rose 0.76% or 19.86 points at the close. The Dow (^ DJI) rose 0.67% or 162.94 points, while the Nasdaq (^ IXIC) rose 0.71% or 49.77 points at the end of Thursday's trading session.

The earnings season is still a key concern. 11.6% of the market capitalization of the S & P 500 reported quarterly results. Jonathan Golub, chief strategist for US equities at Credit Suisse, noted that profits have so far surpassed 2.1%. 73% of the reporting companies exceeded their final estimates. By comparison, over the past three years, 70% of companies have experienced a 4.9% rate of impact.

Major companies that reported include Citigroup (loss of earnings, profit), JPMorgan Chase (loss of earnings, loss of profit), Bank of America (sales impact, profit), Morgan Stanley (loss of revenue, profit loss) and Delta Air Lines (sales inline, profit beat) and United Continental (beat sales, beat profit).

For equities, this was a relatively strong start to the year. The S & P 500 closed in 2019 on eight of the last 11 trading days higher. However, given the continued partial closure of the government and China trade, risk appetite is under pressure tensions and turbulent Brexit litigation.

Given these and other factors, some analysts advise investors to "sell off in the rally." Andrew Garthwaite, a stock analyst at Credit Suisse, said in a statement that the company sees some 5% uptrend in key global markets in 2019, it believes that it can sell developed markets instead of continuing to build positions.

In support of his claim, Garthwaite noted that global earnings revisions are "now negative" and "in line with the decline in equities next year". Investment-grade spreads are on the rise, a phenomenon that occurs seven months before a market peak, he added. US wage growth, up 3.2% in December from December, may weigh on corporate margins. And excess liquidity or M1 growth minus nominal gross domestic product is at its lowest level since 2010, "this is the devaluation of global markets over the past 12 months," Garthwaite added.

Garthwaite also pointed out that US-China trade concerns remain one of the key global issues for 2019. However, investors received good news after the Chinese government had confirmed on Thursday that the country's main negotiator, Vice Prime Minister Liu He, will return to the US USA at the end of the month for another round of trade talks. This follows three days of mid-level talks earlier this month in Beijing.

The tensions between the two countries, however, have barely eased. The latest wrinkle comes next Wednesday. Reports According to Prosecutors Public Prosecutor's Office Initiate Criminal Investigations Against China's Huawei Technologies for Alleged Theft of Business Secrets in US Corporations. Huawei, a Chinese telecommunications giant, has long been at the crossroads of the war of commerce as the Trump government seeks to counteract the theft of intellectual property and technology transfer by Chinese companies.

STOCKS: disappointing quarterly results from Morgan Stanley; Shares fall

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) - sm Mt (0.8em) - sm" type = "text" content = "Morgan Stanley (MS) reported a diluted earnings per share of 80 cents. or 10 cents below consensus expectations, sales of $ 8.55 billion in the fourth quarter versus $ 9.35 billion, according to Bloomberg. Morgan Stanley also saw a sharp decline in bond trading, a downtrend that plagued many Wall Street banks amid market volatility in the fourth quarter. Morgan Stanley's fixed income income dropped 30% to $ 564 million, below the consensus estimate of $ 823 million, according to Bloomberg. Morgan Stanley's shares fell 4.41% to $ 42.53 at the close of the market. "Data-reactid =" 25 ">Morgan Stanley (MS) reported a diluted earnings per share of 80 cents. or 10 cents below consensus expectations, sales of $ 8.55 billion in the fourth quarter versus $ 9.35 billion, according to Bloomberg. Morgan Stanley also saw a sharp decline in bond trading, a downtrend that plagued many Wall Street banks amid market volatility in the fourth quarter. Morgan Stanley's fixed income income dropped 30% to $ 564 million, below the consensus estimate of $ 823 million, according to Bloomberg. Morgan Stanley's shares fell 4.41% to $ 42.53 at the close.

NYSE Governor Nicholas Brigandi is working with traders on the New York Stock Exchange Stock Exchange on Tuesday, March 24, 2015. US equities were mixed on Tuesday's early trading day as investors evaluated the latest consumer price news and some corporate earnings. (AP Photo / Richard Drew)

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) - sm Mt (0.8em) - sm" type = "text" content = "The railway operator CSX Corp. (CSX) outperformed consensus estimates for sales and earnings, Adjusted earnings, at $ 3.14 billion, were $ 1.01 per share, up 99 cents on revenue of $ 3.12 billion, Bloomberg said. However, the company expects low single-digit revenue growth for the full fiscal year 2019, compared to growth of 7.4% last year. CEO James Foote told Reuters that this was due, among other things, to a planned reduction in intermodal services, while the haulage company made improvements rather than an expected slowdown in the US economy. CSX shares fell 0.44% to $ 65.09 per share. "Data-reactid =" 41 ">The railway operator CSX Corp. (CSX) outperformed consensus estimates for sales and earnings, Adjusted earnings, at $ 3.14 billion, were $ 1.01 per share, up 99 cents on revenue of $ 3.12 billion, Bloomberg said. However, the company expects low single-digit revenue growth for the full fiscal year 2019, compared to growth of 7.4% last year. CEO James Foote told Reuters that this was due, among other things, to a planned reduction in intermodal services, while the haulage company made improvements rather than an expected slowdown in the US economy. The shares of CSX fell 0.44% to $ 65.09 at the close of trading.

ECONOMY: New jobless claims fell more than expected last week

Initial jobless claims in the US fell 3,000 to 213,000 in the week ending January 12, below consensus estimates of 220,000. The drop in new jobless claims is the most recent data suggesting a continuation of the strength of the US labor market. However, continued claims rose to 1.737 million for the week ending Jan. 5, from 1.719 million for the previous week.

The Philadelphia Fed production outlook survey index rose from a revised 9.1 in December to 17 in January, with more than 30% of manufacturers recording an overall increase in activity and a 13% decline. The new orders index rose 8 points to 21.3, the highest level in six months. The latest results of the Regional Bank's survey represent a turnaround from December onwards. During this time, the results of the banks of New York, Philadelphia, Richmond and Dallas Federal Reserve disappointed.

-

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) - sm Mt (0.8em) - sm" type = "text" content = "Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 46 ">Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) - sm Mt (0.8em) - sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit,"data-reactid =" 47 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit,

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) - sm Mt (0.8em) - sm" type = "text" content = "Read more about Emily:"data -reaidid =" 48 ">Read more about Emily:

Why the arrest of Huawei is a big problem for US-China trade relations

Netflix user growth exceeds expectations and shares the top

Now it is a unique opportunity to invest in US pot companies

There is now "headwind" for the rights of the markets

Ark Invest CEO: Tesla is a repeat of Apple

The weakening Chinese economy could be a problem for Apple

Comments