Strong earnings from Boeing, GM, others send stocks higher

AP News
|
Posted: Oct 21, 2015 9:39 AM
Strong earnings from Boeing, GM, others send stocks higher

NEW YORK (AP) — Stocks are opening higher as several big U.S. companies deliver better earnings than the market was expecting.

General Motors jumped 4 percent after reporting earnings and revenue that easily beat analysts' forecasts.

Boeing rose 2 percent after its own results also came in ahead of expectations.

The Dow Jones industrial average climbed 49 points, 0.3 percent, to 17,269 as of 9:35 a.m. Eastern time Wednesday.

The Standard & Poor's 500 index rose five points, or 0.3 percent, to 2,036. The Nasdaq composite gained 19 points, or 0.4 percent, to 4,899.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.04 percent.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Global stock markets rose Wednesday buoyed by hopes that central banks in Japan and Europe may provide some more stimulus to their ailing economies.

KEEPING SCORE: In Europe, Germany's DAX was up 1 percent to 10,248 while the CAC-40 in France rose 0.6 percent to 4,701. The FTSE 100 index of leading British shares was 0.3 percent higher at 6,363. U.S. stocks were poised for a solid opening with Dow futures and the broader S&P 500 futures up 0.4 percent.

ECB IN FOCUS: Attention is slowly turning towards Thursday's policy meeting of the European Central Bank. Many traders think the bank is edging closer to unleashing more monetary stimulus on top of the 1.1 trillion euros ($1.2 trillion) it is already pumping into the eurozone's less than impressive economic recovery. While no immediate action is expected at Thursday's meeting in Malta, investors will look for hints from ECB President Mario Draghi that the bank is willing or preparing to extend the stimulus effort rather than let it end next year.

JAPAN TRADE: Investors viewed disappointing trade figures for September as further reason to expect additional stimulus from the Bank of Japan. Weakness in exports led to a 114.48 billion yen ($955 million) trade deficit for the month against expectations for a large surplus. And a 3.5 percent year-on-year drop in exports to China underscored the challenges to Japan's recovery.

ANALYST TAKE: The trade data were a "bad news is good news" moment for Japan stocks, said Angus Nicholson of IG in a market commentary. But given recent upbeat comments by central bank officials and the finance minister, and the fact that the BOJ already controls most of the market in the government securities it has been buying to pump money into the economy, "The big question is whether the Bank of Japan will do anything about it during its meeting next week."

TOPSY-TURVY CHINA: After spending much of the day in positive territory, the Shanghai Composite Index took a hit from selling of heavy industrials such as Zoomlion Heavy Industry Science and Technology Co., which has forecast weaker earnings due to slack demand. Zoomlion fell 4.4 percent and rival XCMG Construction Machinery Co. tumbled 7.9 percent. The Shanghai benchmark fell 3.1 percent to 3,320.68.

ASIA'S DAY: Outside China, most markets were higher. Japan's Nikkei 225 gained 1.9 percent to 18,554.28 and South Korea's Kospi was up 0.2 percent at 2,042.98. Australia's S&P/ASX 200 rose 0.2 percent to 5,248.30. Hong Kong's market was closed for a public holiday.

ENERGY: Benchmark U.S. crude fell 76 cents to $45.53 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 49 cents to $48.22 a barrel in London.

CURRENCIES: The euro was flat at $1.1353 while the dollar rose 0.2 percent to 120.03 yen.