World News | Stock Market Today: Wall Street Climbs Ahead of US GDP Data
Get latest articles and stories on World at LatestLY. Wall Street pointed toward gains ahead of the release of data expected to show the world's biggest economy cooled in the first quarter despite a very strong showing from the largest companies in the US during the same period.
Washington, Apr 27 (AP) Wall Street pointed toward gains ahead of the release of data expected to show the world's biggest economy cooled in the first quarter despite a very strong showing from the largest companies in the US during the same period.
Futures for the Dow Jones industrials rose 0.4 per cent and the S&P 500 inched 0.5 per cent higher before the opening bell Thursday
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The US economy stood firm last year but is expected to weaken and potentially slip into a recession in coming months. Worries over the impact of higher interest rates aimed at vanquishing high inflation are detracting from relatively strong earnings reports for many companies.
Shares in Facebook parent company Meta jumped 12 per cent in off-hours trading after its first-quarter results beat Wall Street's modest expectations on both profit and revenue. Meta's revenue guidance for the current quarter was also above analyst estimates.
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Meta's surprisingly strong quarter echoed results from other high-profile companies. General Motors, Microsoft, Coca-Cola and McDonald's have all posted better-than-expected financial results this week.
American Airlines and Southwest Airlines muscled through a tough quarter but see travel picking up strongly in the crucial summer travel season, dispelling fears that inflation would suppress the desire of Americans to vacation. Southwest lost USD 159 million due to aftershocks from the December meltdown that caused thousands of cancelled flights. Its shares tumbled 4.5 per cent before the bell Wednesday.
Elsewhere, at midday in Europe, France's CAC 40 added 0.3 per cent, while Germany's DAX edged up 0.1 per cent and Britain's FTSE 100 inched down 0.1 per cent.
In Asian trading, Japan's benchmark Nikkei 225 recouped morning losses to add 0.2 per cent, finishing at 28,457.68.
The Bank of Japan began a two-day monetary policy meeting under its new governor, Kazuo Ueda. No immediate change is expected to the nation's super-easy monetary policy.
Australia's S&P/ASX 200 slipped 0.3 per cent to 7,292.70. South Korea's Kospi rose 0.4 per cent to 2,495.81. Hong Kong's Hang Seng added 0.4 per cent to 19,840.28, while the Shanghai Composite added 0.7 per cent to 3,285.88.
Kirin Holdings Co., a Japanese maker of beer and other beverages, rose 0.5 per cent after it announced it was acquiring 100 per cent of the outstanding shares of Blackmores, an Australian-based company operating a natural health business in the Asia-Pacific region. The move will make Blackmores a Kirin subsidiary in a deal valued at 169.2 billion yen (USD 1.3 billion)
On Wall Street on Wednesday, the S&P 500 dropped 0.4 per cent and the Dow Jones Industrial Average fell 0.7 per cent. The Nasdaq composite led the market with a gain 0.5 per cent.
Concerns about the strength of US banks have weighed on markets lately, especially the spotlight on First Republic Bank. The worry is that it and other smaller and mid-sized banks could suffer debilitating runs of deposits from customers, similar to the ones that caused last month's failures of Silicon Valley Bank and Signature Bank.
Even without more shutdowns, the industry's struggles could cause a pullback in lending by banks that would sap the economy. All banks are contending with much higher interest rates, which have flown higher over the past year to tighten the screws on the economy and financial markets.
The US Federal Reserve's key overnight interest rate is at its highest level since 2007. High rates slow the entire economy and hurt prices for investments.
In energy trading, benchmark US crude added 34 cents to USD 74.64 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 30 cents to USD 78.02 a barrel.
In currency trading, the US dollar dipped to 133.47 Japanese yen from 133.66 yen. The euro was unchanged at USD 1.1042. (AP)
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)