Wall Street up, supported by Boeing and Caterpillar

Global stocks rise despite lackluster results; sterling creeps up as EU delays Brexit decision
October 24, 2019
US STOCKS-Wall St treads water after mixed earnings reports
October 25, 2019

Wall Street up, supported by Boeing and Caterpillar

(New York) The New York Stock Exchange climbed Wednesday, benefiting in particular from the progress of the titles of giant Boeing and Caterpillar, both of which published their quarterly results.

Its flagship index, the Dow Jones, gained 0.17% to 26,833.95 points.

The NASDAQ, with strong technological coloration, took 0.19% to 8119.79 points.

The broad-based S & P 500 index rose 0.28% to 3004.52 points, just a stone’s throw from its record reached in late July.

Boeing’s share rose 1.04% despite the aircraft’s subdued results in the third quarter.

Investors appeared reassured by the positive signals sent by the US giant, who confirmed he expected to return to the sky in 2019 the 737 MAX, grounded since two fatal crashes, and announced the maintenance of production rates. Caterpillar also appreciated (+ 1.23%) despite a lower forecast of earnings for 2019 and disappointing results. The CEO assured, however, that the share buyback program will continue at the same pace in the second half of the current year. Jim Umpleby also said that the group would reduce production to adapt to the slowdown in the global economy, a measure visibly welcomed by investors. “The earnings season will continue to dominate the movement of stocks and market transactions in the coming days,” warns Peter Cardillo of Spartan Capital Securities. Electronic components maker Texas Instruments dropped 7.48% after posting below expectations amidst Sino-US trade tensions.

Ford and Microsoft also released their results after the close, while Tesla was to engage in this exercise in the evening.
Nearly a quarter of the S & P 500 companies released their quarterly results.

The Libra in question
“Investors are also starting to look at next week’s Fed monetary policy meeting, although this is not the main topic yet,” notes Cardillo.
At the end of this meeting, the Federal Reserve could lower, for the third time this year, its key rates to support the growth of the US economy.
On the bond market, the 10-year rate on the US debt was up slightly to 1.764% around 16:50, against 1.761% the day before closing.
Among other values, Snap, the parent company of Snapchat instant messaging, fell 5.86% after posting disappointing results.

The Chipotle restaurant chain dropped 5.16% despite strong quarterly results.

Whirlpool appreciated 0.96%. The appliance maker reported strong gains in the third quarter.

Facebook gained 2.09%. The boss of the social network, Mark Zuckerberg, defended his project of digital currency in front of members of the American Congress, admitting that the ambitions of the Libra could be revised downwards.

Nike fell 3.43% as the comma brand announced Tuesday after the stock market closed that its general manager, Mark Parker, who has led the group since 2006, will be replaced in early 2020.

His appointed successor, John Donahoe, currently runs the software company ServiceNow, which has yielded 3.65%.
Telecommunications make Toronto fall
The Toronto Stock Exchange closed lower on Wednesday as the telecom sector retreated with the Rogers Communications share, following disappointing earnings and downward revisions.

The sector plunged 5.1%, while Rogers shares fell 8.1%, reaching a new low for the last 52 weeks. Its competitors also gave ground.

These declines came after Rogers reduced its revenue outlook for the year due to the popularity of its new unlimited wireless data plans.

“The communications sector is largely driving the downturn in the TSX, while in the United States, things were a bit more balanced,” said Candice Bangsund, portfolio manager for Fiera Capital.

The election on Monday of a Liberal minority government could also have an impact because of the party’s promise to lower mobile phone rates, she added.

The Toronto S & P / TSX Composite Index lost 55.59 points to close the session with 16,335.93 points.

In the currency market, the Canadian dollar traded at an average price of 76.42 cents US, up from its previous average of 76.37 cents US.

On the New York Commodities Exchange, crude oil prices rose from US $ 1.49 to US $ 55.97 per barrel, while gold prices rose from US $ 8.20 to US $ 1495.70 $ US an ounce. The price of copper rose by 3.85 US cents to US $ 2.67 per pound.