U.S. Index Futures Little Changed; Qualcomm Jumps on Earnings

by Frankie Norman July 23, 2016, 6:43
U.S. Index Futures Little Changed; Qualcomm Jumps on Earnings

The S&P 500 posted 45 new 52-week highs and no new lows; the Nasdaq Composite recorded 99 new highs and 16 new lows.

Abbott Laboratories reported better-than-expected quarterly sales and profit, sending its shares up 2.2 per cent.

The large-cap S&P 500 Index (NYSEARCA:SPY) closed down 0.3%, with commodity-sensitive stocks in the industrials and materials sectors leading the declines. Although the company's second-quarter earnings beat estimates, revenues were a little light.

ENERGIZED: Southwestern Energy jumped 71 cents, or 5.4 percent, to $13.94. USA crude was last down $0.68, or down 1.52 percent, at $43.97 per barrel.

Biogen BIIB.O was up 5.8 percent at $277.80 after strong results.

United States equity markets tumbled on Thursday in reaction to mixed corporate earnings from technology heavyweight Intel Corp (NASDAQ: INTC).

American Express, another Dow component, fell 1.6 percent after reporting a 37 percent rise in earnings to $2.0 billion in the second quarter.

GE shares fell 2.4% and Honeywell, which lowered its 2016 revenue guidance, was off almost 5%. Rival Qualcomm fared better, with shares rising 7.4 percent after it reported strong demand for its mobile chips in China. It helped hold the industrial sector to the weakest gains of the day among the 10 sectors that make up the S&P 500, up 0.1 percent.

In Europe, meanwhile, the main indices were in the red as investors eyed the latest rate announcement from the European Central Bank. Verizon rose 1 percent. The S&P 500 is up more than 8 percent since June 27.

Today was another wild day on Wall Street, and investors might have missed several profit opportunities if they weren't paying attention.

The S&P 500 and Dow set new records last week for the first time in more than a year, shaking off global economic uncertainty including Britain's recent vote to leave the European Union. "I think it's interesting; a half-a-percent move down feels like a 5% move".

BIGGER WAVES AHEAD? Next week could be more exciting for markets, with the Bank of Japan and Federal Reserve each holding policy meetings.

Japan's economy is barely growing, and economists are speculating about whether its central bank may push more stimulus next week. But if the Fed highlights the better-than-expected recent economic reports, economists may move up their predictions for when the it could next raise interest rates.

European stocks were flat as the ECB left rates unchanged.

Britain's FTSE 100 rose 0.4 percent to 6,728 and Germany's DAX was up 0.1 percent to 10,163. The yield on the 30-year Treasury bond climbed to 2.31 percent from 2.29 percent.

OIL: U.S. crude gained 3 cents to $44.78 in NY. Brent crude, the global benchmark, rose 4 cents to $46.24, after falling 97 cents on Thursday.

Oil prices fell to a two-month low before U.S. data that may signal whether a supply glut in the top consuming country was easing. Barrick Gold Corporation (NYSE: ABX) fell almost 8 percent on heavier than usual volume to $19.91, finishing at new session lows.

The yuan jumped as much as 0.28 per cent to 6.6780 per U.S. dollar amid speculation China's central bank is trying to prevent the currency from weakening beyond 6.70, a threshold that was breached this week for the first time since 2010.

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