The Breakfast Briefing: Global Stocks Waver After Earnings-Driven Jump

Ted

FYI: Global stock markets took a pause Wednesday after strong earnings propelled U.S. stocks to new highs.

In Europe, the Stoxx Europe 600 was down 0.1%. That followed losses across most Asian markets.

Futures pointed to broadly flat opening for the S&P 500 and the Dow Jones Industrial Average. The S&P 500 registered its first record close of 2019 on Wednesday, while the Dow is within less than a percentage point of a new high.

Strong corporate earnings have boosted stocks this week in a year marked by a more accommodative Federal Reserve and a stable economy. The rally marked a strong reversal from the fourth quarter of 2018 when a selloff dragged the Nasdaq into bear-market territory and left the S&P 500 teetering on the edge of ending its longest bull run ever.

Of the 104 companies in the S&P 500 to report results so far, some 78% have beaten analysts’ expectations, compared with about 65% in the fourth quarter, according to data from Refinitiv. The bar is significantly lower, however, after steep downgrades to 2019 earnings forecasts in recent months.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was up 0.2%. The 10-year U.S. Treasury yield was down at 2.551% from 2.570% on Tuesday. Yields move inversely to prices.

In Asia, Hong Kong’s Hang Seng fell 0.5% while Japan’s Nikkei was down 0.3%.

In commodities, Brent crude, the global oil benchmark, was down 0.5%, while gold prices fell 0.1%.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-waver-after-earnings-driven-jump-11556091910

Bloomberg:
https://www.bloomberg.com/news/articles/2019-04-23/asian-stocks-set-for-gains-after-u-s-hits-record-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-current-stock-market-rally/

CNBC:
https://www.cnbc.com/2019/04/24/stock-market-wall-street-looks-to-facebook-microsoft-earnings.html

U.K.:
https://uk.reuters.com/article/uk-britain-stocks/uk-stocks-fall-as-concern-grows-over-chinas-stimulus-plans-idUKKCN1S00TN

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-dip-as-china-policy-concerns-temper-earnings-boost-idUSKCN1S00SF

Asia:
https://www.marketwatch.com/story/asian-markets-give-up-early-gains-following-wall-street-records-2019-04-23/print

Bonds:
https://www.cnbc.com/2019/04/23/us-bonds-treasury-yields-tick-lower-as-investors-await-data-auctions.html

Currencies:
https://www.cnbc.com/2019/04/24/forex-market-us-housing-data-european-economy-in-focus.html

Oil:
https://www.cnbc.com/2019/04/24/oil-market-us-iran-oil-sanctions-opec-spare-capacity-in-focus.html

Gold:
https://www.cnbc.com/2019/04/24/gold-market-dollar-moves-stock-market-climb-in-focus.html

Current Futures:
https://finviz.com/futures.ashx