Wednesday January 30th

30-01-2019

Dow set to jump more than 200 points, boosted by Boeing and Apple earnings

U.S. stock index futures rose sharply on Wednesday as Boeing and Apple surged on the back of their earnings results. At 8:18 a.m. ET, Dow Jones Industrial Average futures were up 237 points, indicating a gain of 248.04 points at the open. S&P 500 and Nasdaq 100 futures also pointed to strong gains at the open. Boeing shares jumped 5.8 percent after its quarterly earnings easily beat expectations. The aerospace giant also posted annual revenue of more than $100 billion for the first time and gave strong earnings guidance for 2019. Apple also rose more than 4.8 percent after reporting a quarterly profit that barely beat estimates. The company’s overall quarterly revenue topped expectations, but iPhone sales for the quarter came in below estimates. The report comes after the company had slashed its revenue guidance earlier this month, citing a slowdown in China. The results from the Dow members come during the busiest week of the earnings season. By the end of this week, more than 100 S&P 500 companies will have released their quarterly results. So far, 71 percent of the companies that have reported have surpassed earnings expectations, FactSet data show. AMD shares also surged more than 9 percent on its quarterly release. Facebook and Microsoft are scheduled to report after the bell Wednesday. Qualcomm and Tesla are also slated to report. Investors also looked ahead to a key monetary-policy decision from the Federal Reserve. The Fed is largely expected to have kept interest rates unchanged at their latest meeting. However, investors will look for clues regarding the Fed’s plans to roll off its massive balance sheet. On the data front, U.S. private payrolls grew by 213,000 in January, according to data released by ADP and Moody’s Analytics. Economists polled by Refinitiv expected a gain of 178,000. The data come ahead of Friday’s nonfarm payrolls report. Major stock markets in Asia closed mixed on Wednesday, as investors awaited the start of U.S.-China trade talks later in the day stateside. The mainland Chinese markets slipped back into negative territory — after an earlier recovery — to end their trading day lower. The Shanghai composite slipped about 0.72 percent to 2,575.58 while the Shenzhen component fell 1.070 percent to 7,470.47. The Shenzhen composite also declined 1.279 percent to 1,283.71. Hong Kong’s Hang Seng index was higher by about 0.1 percent. Japan’s Nikkei 225 slipped 0.52 percent to close at 20,556.54 while the Topix fell 0.41 percent to finish its trading day at 1,550.76. South Korea’s Kospi, on the other hand, advanced 1.05 percent to close at 2,206.20. Oil prices rose on Wednesday, boosted by concerns about supply disruptions following U.S. sanctions on Venezuela’s oil industry but pegged back by uncertainty over the global economy. U.S. West Texas Intermediate (WTI) crude futures rose 51 cents, or 1 percent, to $53.82 per barrel at 8:30 a.m. ET (1330 GMT). International Brent crude oil futures were up 53 cents, or nearly a percent, at $61.85 per barrel. Gold rose to near a more than eight-month peak on Wednesday, supported by a muted dollar as investors awaited the Federal Reserve’s policy decision and U.S.-China trade talks later in the day. Spot gold was relatively unchanged at $1,311.75 per ounce at 8:05 a.m. ET, after touching $1,315.93, its highest since May 14, 2018 earlier in the session. U.S. gold futures rose 0.13 percent to $1,310.60.