On 09 May, 2017 – Global stocks mixed

With little new economic information, stocks meandered through the trading day.
United States
Stocks drifted in listless trading with the Dow Jones industrials down 0.2 percent and the S&P 0.1 percent lower. The Nasdaq however added 0.3 percent and hit a new high again. Last week’s employment report reassured investors that the US economy is growing despite its weak showing at the start of the year. Profits also have been strong and investors continue to hope that US President Donald Trump will cut corporate and personal taxes. Traders also monitored comments from Federal Reserve officials throughout the day with Boston Fed President Eric Rosengren suggesting the Fed could be forced to raise interest rates at a faster pace if unemployment drops below 4 percent.
Marriott International jumped after reporting stronger than expected earnings for the latest quarter. The hotel operator cited improving trends around the world. Hertz Global Holdings was lower after reporting a larger loss for the last quarter than expected. Valeant Pharmaceuticals jumped after the company posted its first profit in six quarters. Endo International and Office Depot also rose after reporting better than expected quarterly earnings. Wayfair surged to an all-time high after the online furniture retailer revenue beat expectations. Apple extended its climb.
Walt Disney reported an 11.4 percent increase in quarterly profit, helped by the success of its latest fairy tale adaptation “Beauty and the Beast” and strength in the company’s theme park business. Disney’s revenue rose 2.8 percent to $13.34 billion from $12.97 billion a year earlier. Net income climbed to $2.39 billion or $1.50 per share in the second quarter ended April 1 from $2.14 billion or $1.30 per share.
Job openings in March totaled 5.743 million, up from a revised 5.682 million in February and well ahead of hiring which totaled 5.260 million.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$9.40 to US$1,220.40. Copper futures were up 0.1 percent to US$2.50. WTI spot crude was down 49 US cents to US$45.94. Dated Brent spot crude was down 56 US cents to US$48.78. The US dollar was up against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was up 0.4 percent. The yield on US Treasury 30 year bond was unchanged at 3.02 percent while the yield on the 10 year note was up 1 basis point to 2.39 percent.
Europe
Most European stock indices advanced Tuesday thanks to a weaker euro and well received corporate earnings. The FTSE was up 0.6 percent, the CAC gained 0.3 percent, the DAX advanced 0.4 percent and the SMI added 0.8 percent.
Adecco rose after the world’s biggest temporary staffing group reported a 22 percent jump in first-quarter profit. Potash maker K+S Group advanced after the company said it expects revenues and operating earnings to be tangibly higher in the 2017 financial year than in the previous year. Utility E.ON jumped after retaining its full-year earnings forecast despite reporting a sharp drop in first quarter profit.
Miners Anglo American, Antofagasta, Glencore and BHP Billiton also moved higher in London after sharp losses Monday following disappointing merchandise trade data from China. Micro Focus shares dropped after the software company issued a trading update ahead of its full-year results. Centrica was lower after Prime Minister Theresa May confirmed that the Conservative manifesto will include plans for price controls on energy bills.
In economic news, German March industrial output declined 0.4 percent from the previous month, partially reversing February’s 1.8 percent increase. March seasonally adjusted merchandise trade surplus was €19.6 billion, down from a marginally larger revised €21.2 in February. Exports were up 0.4 percent on the month while imports jumped 2.4 percent.
Asia Pacific
Stocks were mixed Tuesday as the French election euphoria faded and a lack of fresh catalysts kept investors on the sidelines. Markets were closed in South Korea for the presidential election.
The Shanghai Composite inched up 0.1 percent in thin trading as concerns over tougher financial regulations lingered. The People’s Bank of China refrained from injecting cash into markets via open market operations for the third day running, adding to concerns over policy tightening. The Hang Seng jumped 1.3 percent.
Both the Nikkei and Topix lost 0.3 percent. Exporters were mixed, with Panasonic, Honda Motor and Toyota declining while Sony and Canon gained. Toshiba jumped after telling partner Western Digital not to interfere with the sale of its chip business.
The S&P/ASX declined 0.5 percent and the All Ordinaries were down 0.4 percent after March retail sales data disappointed investors and bank stocks sold off on concerns over rising challenges from regulatory action to cool the housing market. Commonwealth Bank was lower after reporting underwhelming third-quarter results. The other three banks also retreated prior to the release of the federal budget amid speculation the Australian government may impose a transactions tax on institutional lending. March retail sales slipped 0.1 percent on the month.
The Sensex was virtually unchanged (up 7.10 points) — investors booked some profits and looked ahead to quarterly earnings from Bharti Airtel and Hero MotoCorp for further direction.
Looking Forward
China releases April consumer and producer price indices. France posts march industrial production and merchandise trade balance. The US releases April import and export price indices and the weekly petroleum status report.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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