US MARKET JUMP AS INVESTORS APPLAUDED APPLE INC.'S EARNINGS
DATE: 26/04/2012
The US markets gained on Wednesday as investors applauded Apple Inc.'s earnings and offered muted reaction to the Federal Reserve's decision to leave its monetary policy unchanged. Shares of Apple jumped breaking a five-day losing streak, a day after the iPhone and iPad maker reported a quarterly profit that blew out expectations. Also, Federal Reserve Chairman Ben Bernanke stated that he is comfortable with the current stance of interest rate policy given the forecast that economic growth will remain moderate over coming quarters and then only pick up gradually. As expected, Bernanke stressed that Fed could purchase more assets if it looked like the economy needed help. By a nine-to-one vote, the Fed announced that it will leave its target range for its federal-funds rate unchanged at 0 to 0.25% - as it has for every meeting since December 2008. The central bank also did not change the forecast that exceptionally low rates will be here until late 2014. A separately released forecast of the 17 Federal Open Market Committee members showed a growing number coalescing around 2014 as the date of the first hike. Further, Bernanke conveyed that the Fed’s next move depended on the data.
Ahead of the opening, the government reported orders for long-lasting American goods declined in March by the most in three years. Orders for long-lasting US goods fell sharply in March, largely because of fewer bookings for commercial jets. Orders sank 4.2% in March, a bigger decline than forecast and the largest drop in more than three years. The government also revised orders for February to show a 1.9% increase compared to an original reading of a 2.4% gain.
In Europe, the UK's economy slipped back into second recession in less than five years after the economy shrank in the first quarter on sharp decline in construction and a weakness in the service sector. Polish retail sales increased 10.7% and unemployment declined to 13.3%. While the political turmoil in the Netherlands continues after the Dutch opposition parties rejected Prime Minister Mark Rutte's austerity cuts.
The Dow Jones Industrial Average closed higher by 89.16 points, or 0.69 percent, at 13,090.70. The S&P 500 gain 18.72 points, or 1.36 percent, at 1,390.69, while the Nasdaq was up by 68.03 points, or 2.30 percent, at 3,029.63.
Indian ADRs closed mostly in green on Wednesday; Infosys Technologies was up 0.38%, HDFC Bank was up 0.29% and Sterlite Industries was up 0.16%. On the other hand, Wipro was down 0.53% and ICICI Bank was down 0.09%.
Ahead of the opening, the government reported orders for long-lasting American goods declined in March by the most in three years. Orders for long-lasting US goods fell sharply in March, largely because of fewer bookings for commercial jets. Orders sank 4.2% in March, a bigger decline than forecast and the largest drop in more than three years. The government also revised orders for February to show a 1.9% increase compared to an original reading of a 2.4% gain.
In Europe, the UK's economy slipped back into second recession in less than five years after the economy shrank in the first quarter on sharp decline in construction and a weakness in the service sector. Polish retail sales increased 10.7% and unemployment declined to 13.3%. While the political turmoil in the Netherlands continues after the Dutch opposition parties rejected Prime Minister Mark Rutte's austerity cuts.
The Dow Jones Industrial Average closed higher by 89.16 points, or 0.69 percent, at 13,090.70. The S&P 500 gain 18.72 points, or 1.36 percent, at 1,390.69, while the Nasdaq was up by 68.03 points, or 2.30 percent, at 3,029.63.
Indian ADRs closed mostly in green on Wednesday; Infosys Technologies was up 0.38%, HDFC Bank was up 0.29% and Sterlite Industries was up 0.16%. On the other hand, Wipro was down 0.53% and ICICI Bank was down 0.09%.
POWERED BY: COMMODITY INSIGHTS
No comments:
Post a Comment