Wednesday January 22nd

22-01-2020

Dow set to rise more than 100 points, led by strong IBM earnings

U.S. stock index futures indicated on Wednesday a rebound from the previous session’s losses after the release of stronger-than-expected results from IBM and Netflix. At around 7:10 a.m. ET, Dow Jones Industrial Average futures were up 88 points, indicating a gain of 110 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a solid open. IBM shares climbed more than 4% in the premarket on the back of quarterly numbers that beat analyst expectations. The company also issued 2020 earnings guidance that topped estimates. Netflix gained 2% after releasing its results. The streaming giant’s revenue topped estimates, but its earnings per share was not comparable to an analyst forecast. International paid subscriber additions, however, topped expectations. So far, more than 10% of S&P 500 companies have posted their latest quarterly results. Of those companies, 75% have posted better-than-forecast earnings. Sentiment was also lifted as concerns over the coronavirus, which has swept across China, eased. China on Wednesday unveiled measures to rein in the deadly virus. President Donald Trump also said he trusts Chinese President Xi Jinping to deal with the crisis, adding the U.S. has everything “totally under control.” Trump made his comments after U.S. public health officials confirmed that the first U.S. case has been diagnosed in Washington State. However, the Centers for Disease Control and Prevention said the patient  “poses little risk” to the public. Airline and casino stocks rebounded Wednesday after falling sharply in the previous session. American and United Airlines were up 1.1% and 0.8%, respectively. Wynn Resorts, meanwhile, advanced 1%. Markets in Asia edged higher on Wednesday as investors weighed concerns over the spread of the coronavirus that has afflicted hundreds in China so far. Mainland Chinese stocks made a turnaround to close higher after dropping more than 1% in the morning. The Shenzhen component added 1.08% to 11,072.06 and the Shenzhen composite rose 0.724% to 1,819.61. The Shanghai composite advanced 0.28% to around 3,060.75. Hong Kong’s Hang Seng index was 1.32% higher, as of its final hour of trading, after leading losses among major Asian markets on Tuesday. Elsewhere in Asia, the Nikkei 225 rose 0.7% to close at 24,031.35 while the Topix index added 0.53% to end its trading day at 1,744.13. The Kospi in South Korea also gained 1.23% to close at 2,267.25. Oil prices dropped on Wednesday as the International Energy Agency’s (IEA) forecast of a market surplus in the first half of this year was enough to cancel out concerns about military disruptions that have slashed Libya’s crude output. Brent crude was down 34 cents, or 0.5%, to $64.25 per barrel, after dropping 0.3% on Tuesday. U.S. West Texas Intermediate crude fell 32 cents, or 0.6%, to $58.05 a barrel, having declined 0.3% the day before. Gold was little changed on Wednesday as strong technical support on expected dovish monetary policy from global central banks offset revived appetite for riskier assets and an upbeat dollar. Spot gold was 0.1% firmer at $1,558.55 an ounce. U.S. gold futures were steady at $1,558.50.