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Overnight Markets: Dow, S&P surge on energy and industrials

Overnight Markets: Dow, S&P surge on energy and industrials

The Dow and the S&P 500 closed higher on Thursday to halt a two-session losing skid, following upbeat data on the labour market and buoyed by gains in industrial and energy shares.

The Dow Jones Industrial Average added 165 points, or 0.66%, to 24,962, the S&P 500 gained three points, or 0.10%, to 2,704, and the Nasdaq Composite dropped eight points, or 0.11%, to 7,210.

Major indexes advanced early as worries about a faster pace of interest rate hikes by the US Federal Reserve were eased by comments by St. Louis Fed President James Bullard, who expressed concerns that a “bunch of hikes” could turn Fed policy restrictive.

But socks ended the session well off their intraday highs as financial and health-care shares slid into negative territory in the afternoon.

Benchmark 10-year US Treasury yields retreated from the more than four-year highs hit on Wednesday.

Industrial shares climbed 0.59%, led by a 3.04% gain in Quanta Services Inc after its quarterly results and a 3.34% rise in United Technologies Corp after the aero parts maker said it is exploring a breakup of its business portfolio.

Energy stocks, up 1.08%, also helped support gains, as oil prices advanced on a surprise draw in US crude inventories.

Chesapeake Energy Corp shares surged 21.67%, their biggest daily percentage gain since April 2016, after the company’s quarterly results and outlook.

On the other hand, shares in Roku Inc. plunged 18% in heavy trading after the streaming-media company issued a disappointing outlook late Wednesday, along with better-than-expected quarterly earnings.

Pandora Media Inc.’s stock shed 7.2% after the music service late Wednesday posted stronger-than-expected quarterly revenue, although the adjusted net loss was wider than consensus estimates.

Car-rental giant Avis Budget Group Inc. gained 13.5% after its better-than-anticipated results.

Wayfair Inc. shares sank 23% after the online home retailer reported a wider-than-expected fourth-quarter loss.

In Asia, shares advanced on Friday in morning session after US stock indexes mostly edged higher in the last session.

Gains in the region were led by South Korea's Kospi, which bounced back to rise more than 1% after slipping in the last session. In Japan, the Nikkei 225 edged up 0.3% in the morning. In Sydney, the S&P/ASX 200 tacked on 0.63%.

Meanwhile, Hong Kong's Hang Seng Index rose 0.77% in early trade. Gains on the mainland were slighter. The Shanghai composite inched higher by 0.13% and the Shenzhen composite added 0.14%.

 

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