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Michael George Haddad
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Back to business. Shares rose broadly on Friday as the three major stock indexes posted gains. After a difficult period, the first quarter earnings season has finally arrived, with banking results boosting investors' mood and many more big names on the bridge for next week. Finally, a distraction from the shortage of news on the US-China negotiations. Today, after the bell, we …
… applaud the results of the first quarter;
… Examine other data; and
… see Anadarko fly away.
End on a good note
After hesitating and waiting, investors were happy to hear other news that rumors that commercial talks would be winning some agreement, hopefully.
the
Dow Jones Industrial Average
269.25 points, or 1.03%, to 26412.30, while the
S & P 500
added 19.09 points, or 0.66%, to 2907.41, and the
Nasdaq Composite
earned 36.80 points, or 0.46%, at 7984.16. Each index ended the week with a 0.1% rise for the Dow, 0.5% for the S & P and 0.6% for the Nasdaq.
Investors were encouraged
JPMorgan Chase
(JPM) started the reporting season of the first quarter with some good news, even though not all banks could say the same. Search
Bank of America
(LAC)
Citigroup
(C) and
Goldman Sachs
(GS) to report next week. Although shareholders have reason to celebrate, the results could bode well for other banks: Jeffery Harte by Sandler O'Neill notes that JPMorgan's Fixed Income and Commodity Products (FICC) results and technical debts are much better than expected.
Not all sectors will necessarily see similar results, John Lynch from LPL Research written. He notes that while the benefits of health care, utilities and real estate are expected to post only small year-over-year gains, the slump in oil means that energy sector profits could fall by more than 20%. In addition, analysts are preparing for a double-digit decline in the profits of the technology sector. Together, the energy and technology sectors accounted for about 70% of the 4.6% decline in S & P 500 earnings in the first quarter.
Nevertheless, the gains are just one piece of the puzzle. While markets demand news of tariff negotiations, there is more good news to digest. The Chinese data published overnight show that exports grew 14.2% from one year to the next last month, which is well above expectations. This is not a big news, but it is a welcome departure from recent periods of decline. And at least that does not add to the fears that global growth will slow down further. John Normand of JPMorgan writes that his company's economists have seen their Forecast Revision Index increase by a record amount in nine months, following recent data provided by the United States and China.
The hot stock
Anadarko Petroleum
Stock (APC) reached the top of the S & P 500, following the announcement that
Chevron
(CVX) plans to buy the company. Anadarko rose $ 14.98, or 32%, to $ 61.78. Chevron was the fourth worst performer in the index, down 4.9%.
The $ 33 billion deal would allow Chevron to expand its presence in the productive Permian Basin – and raises the question of knowing
Exxon Mobil
of the
(XOM) could be the next takeover target.
In the last 12 months, the Anadarko share has lost 1.6%.
The biggest loser
ANTM (Anthem Stock) has collapsed at the bottom of the index, another tough day for health care. Hymn lost $ 23.44, or 8.5%, to $ 252.85.
Health sector stocks also hit the chin on Thursday, and this trend continued on Friday, despite a lack of apparent news, with
UnitedHealth Group
(A H),
Centene
(CNC), and
Humana
(HUM), all of the underperforming of the S & P 500.
In the last 12 months, the anthem stock has increased by 14.7%.
Write to Teresa Rivas at [email protected]
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