Solid earnings helps Wall Street open higher

Source :AP
Author :AP
Last Updated: Tue, Oct 20th, 2020, 20:23:29hrs
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New York: Stocks are opening higher on Wall Street as traders look over several solid earnings reports from U.S. companies.

They're also monitoring last-ditch efforts in Washington to get more aid for the economy.

The S&P 500 rose 0.4% in the first few minutes of trading Tuesday. Procter & Gamble, Regions Financial and Travelers all rose after reporting quarterly results that were better than analysts were expecting.

The Justice Department is expected to file a lawsuit later in the day claiming that Google has abused its dominance in search to stifle competition. Overseas markets were mixed and Treasury yields held steady.

Global stock markets were subdued on Tuesday as hopes faded that the U.S. will come through with badly needed aid for the economy before the presidential election.

U.S. shares appeared set to recover only part of Monday's losses, with Dow and S&P 500 futures both up 0.6%.

In Europe, France's CAC 40 gained 02% to 4,952, while Germany's DAX slipped 0.4% to 12,801. Britain's FTSE 100 edged up 0.2% to 5,894. Rising coronavirus caseloads are dragging on sentiment as investors consider the likelihood of further business shutdowns and other restrictions on business activity.

"The situation is getting worse in Europe as it faces the second COVID-19 wave, and local governments are trying their best to bring the situation under control," said Naeem Aslam of Avatrade.com.

"The current restrictive measures, which include strict lockdowns in some places, will suppress economic recovery. This particular concern was also voiced by the President of the European Central Bank, Christine Lagarde," Aslam said in a report.

The biggest focus for markets has been the fate of U.S. economic stimulus given the heavy blow from pandemic social distancing restrictions and business closures.

Japan's benchmark Nikkei 225 declined 0.4% to 23,567.04, while South Korea's Kospi recouped earlier losses, gaining 0.5% to 2,358.41. Australia's S&P/ASX 200 fell 0.7% to 6,184.60. Hong Kong's Hang Seng inched 0.1% higher to 24,569.54 while the Shanghai Composite gained 0.5% to 3,328.10.

Stocks have been mostly pushing higher this month after giving back some of their big gains this year in a sudden September swoon. The benchmark S&P 500 has notched a gain in each of the past three weeks. Even so, trading often has been choppy from one day to the next, reflecting uncertainty over the timing of more stimulus for the economy.

Investors were also looking ahead to another busy week of corporate earnings reports. Across the S&P 500, analysts are expecting companies to report another drop in profits.

In energy trading, U.S. benchmark crude rose 2 cents to $40.85 per barrel. Brent crude, the international standard, fell 5 cents to $42.57 a barrel.

The dollar inched up to 105.67 Japanese yen from 105.43 yen late Monday. The euro rose to $1.1805 from $1.1769.

Disclaimer This story has been cleared from an automated feed with no modifications to the content. Only the headline has been changed.  Image attributed to Vincent Vu for AP.
 

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