Energy, Industrial Stocks Lift Wall Street; IBM Drags

Doris Richards
April 19, 2018

Solid gains in industrial stocks and retailers outweighed losses among food and beverage companies, technology stocks and banks.

No. 3 USA railroad operator CSX Corp. jumped 6.3 percent after topping profit estimates.

Roughly 10 percent of the companies in the S&P 500 have reported results so far this earnings season, and some 67 percent of those have delivered both earnings and revenue that exceeded financial analysts' expectations, according to S&P Global Market Intelligence. Eastern Time. The Dow Jones industrial average slipped 7 points to 24,779.

In late afternoon trade the S&P briefly lost ground after a Federal Reserve report said robust business borrowing, rising consumer spending, and tight labor markets indicated the US economy is on track for continued growth, with trade war risks being the one big outlier.

The New Brunswick, N.J. -based pharmaceutical company reported higher-than-expected sales in its latest quarter and boosted its sales outlook. "The most notable is energy prices pulling that sector higher", said David Joy, chief market strategist at Ameriprise in Boston. The contract rose $1.95, or 2.9 percent, to settle at $68.47 per barrel on Wednesday.

"China trade tensions seem to have moved to the back burner", he said. The bar was high.

MARKET INSIGHT: "I think overall sentiment today is continuing favorably as geopolitical risk diminishes, and perhaps we're starting to see a definite de-escalation from Trump's America First trade policy", after the Trump-Abe meeting, said Stephen Innes, head of Asian trading at OANDA.

IBM was the biggest decliner in the S&P 500, sliding 7.5 percent to $148.79. S&P 500 e-minis were up 7.5 points, or 0.28 percent, and Nasdaq 100 e-minis were up 18.25 points, or 0.27 percent.

In Toronto, the S&P/TSX composite index was up 204.19 points to 15,557.49.

Tesla rose 2.4 percent after a report that the company was aiming to ramp up production of Model 3 cars to reach its goal.

Lam Research fell 4.6 percent after the chip equipment maker kept its full-year shipment forecast unchanged, which analysts said could imply a slowdown in demand.

Major stock indexes in Europe finished mostly higher.

Advancing issues outnumbered decliners on the NYSE for a 1.79-to-1 ratio, and on the Nasdaq, for a 1.77-to-1 ratio.

On U.S. exchanges 6.46 billion shares changed hands, compared to the nearly 7 billion average for the last 20 days.

Other reports by Iphone Fresh

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