U.S. stocks open higher on earnings despite weak GDP; Dow up 0.06%
Published Apr 27, 2012 10:10AM ET
At the open of U.S. trade, the Dow Jones Industrial Average moved higher by 0.06%, the S&P 500 added 0..25%, while the Nasdaq Composite advanced 0.02%.
75% of the 271 companies reporting in the S&P 500 since April 10 have topped analyst’s estimates and eight out of ten sectors delivered better-than-forecast earnings fuelling the risk on trade.
In other bullish news, U.S. University of Michigan consumer sentiment advanced unexpectedly last month.
In a report, the UoM stated that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.
However, the Gross Domestic Product numbers indicated that the U.S. economy expanded at a 2.2% rate in the first quarter, missing the 2.5% increase projected by economists, casting doubts on the economic growth.
Adding to global growth concerns, S&P slashed Spain’s long term debt rating to BBB+ reporting that the outlook is negative in the face of the recession undermining efforts to cut the budget deficit.
Additionally, the jobless rate spiked to 24.4%, hitting an eighteen year high, the National Statistics Institute reported.
Meanwhile, in Japan, the central bank expanded its plan for government-bond purchases by 10 trillion yen to support the economy.
On the pro global growth side, data indicated Switzerland’s KOF economic barometer rose more-than-expected to a seasonally adjusted 0.40 last month from 0.09 in the preceding month whose figure was revised up from 0.08.
Analysts had expected the KOF economic barometer to rise to 0.26 last month.
Expedia exploded higher by 25% on strong hotel booking business.
Newmont Mining advanced 2.1% after first quarter profits beat analyst’s estimates.
Starbucks gave back 6.4% on declining sales numbers.
In the middle of European trade, the EURO STOXX 50 is ahead by 0.81%, France's CAC 40 added 1.16%, while Germany’s DAX climbed 0.83%. Meanwhile, in the U.K. the FTSE 100 gained 0.48%.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.