Markets today: 'Mag Seven' power stocks in run-up to U.S. earnings
BNN Bloomberg
The world’s largest technology companies drove a rebound in stocks, with traders bracing for a deluge of results from Corporate America that will test this year’s US$4 trillion rally.
Earnings season kicks into full swing Friday, with JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. reporting. A solid economy is expected to fuel a rise in profit growth for S&P 500 companies — and strong margins from big tech will be key. Also helping sentiment Thursday was an inflation report that trailed estimates a day after a hot price reading curbed bets on Federal Reserve rate cuts.
“It’s not going to be Fed rate cuts that drive the market going forward, rather it’s going to be earnings,” said George Ball, chairman of Sanders Morris. “Corporate earnings are much stronger than people have anticipated even in this elevated interest-rate environment.”
The S&P 500 hovered near 5,200, while the Nasdaq 100 added 1.6 per cent. Alphabet Inc. got closer to the $2 trillion mark, Amazon.com Inc. hit a record high and Apple Inc. jumped on news it plans to overhaul its Mac line. Financial shares came under pressure, with Morgan Stanley tumbling on a news report regulators are probing its wealth arm. Globe Life Inc. sank after a short-seller call.
