Posted on 01/25/2018 9:47:34 AM PST by Red Badger
Caterpillar and 3M earnings surpassed analyst expectations. Calendar fourth-quarter earnings and sales have mostly beat analyst expectations thus far.
U.S. stocks traded higher on Thursday on the back of stronger-than-expected quarterly results from Caterpillar and 3M.
The Dow Jones industrial average gained 200 points. The S&P 500 rose 0.3 percent, with materials as the best-performing sector. The Nasdaq composite advanced 0.4 percent.
Shares of Caterpillar rose as much as 2.8 percent before trading 1 percent higher, while 3M gained 2.7 percent. Celgene and McCormick also reported better-than-forecast quarterly earnings and sales.
"The numbers companies are releasing, along with the upbeat views from executives, is helping analysts lift their estimates and that's helping stocks advance," said Mark Luschini, chief investment strategist at Janney. "You [also] have strong U.S. and overseas economic growth, and that is supportive for stocks."
Calendar fourth-quarter earnings and sales have mostly beat analyst expectations thus far. Of the companies that have reported quarterly results, 77 percent have beaten earnings expectations, while 79 percent have surpassed revenue estimates, according to FactSet.
"Thus far corporate earnings have been strong enough to keep momentum building, with the few high profile disappointments coming from franchises that had already been suffering from self-inflicted wounds for a number of quarters," Michael Shaoul, chairman and CEO of Marketfield Asset Management.
"It is still too early to declare the earnings season a clear winner, but thus far the news flow has confirmed the clear picture coming from global economic data in recent months, namely that demand accelerated meaningfully over the course of 2017 and in most sectors has not yet been met by a sufficient increase in supply," Shaoul said.
Investors in the U.S. also looked to Europe after the European Central Bank kept interest rates unchanged. The euro shot up 0.7 percent against the dollar to $1.249, briefly breaking above $1.25.
"People were looking looking for dovishness out of [ECB President Mario] Draghi, and it wasn't until the end of the news conference that he delivered that," said Luke Bartholomew, investment manager at Aberdeen Standard Investments.
The euro's move added to the greenback's recent losses. The U.S. currency is trading around its lowest levels since 2014. On Thursday, it fell 0.6 percent against a basket of currencies to 88.66.
U.S. equities hit record highs on Wednesday before falling from those levels. A roll-over in tech stocks, valuation concerns and worries about protectionist U.S. policies knocked the major indexes from their records.
Rush just said that part of the reason for the up market is the ‘rock star’ reception Trump got in Davos.
MSM will spin this as a sign that Trump’s days are numbered.................
Love me some CAT!!!
THAT’S what I’m talk’n about!!
This is Obama’s economy......just watch...
Construction really does drive the whole economy. Great sign Cat is doing well.
MAGA!!!!
i have already heard Cuomo saying that.
We picked the wrong year to retire and be heavily invested in bond mutual funds. :(
Yep. Trump is King in Davos.
Back in mid-September, I bought a bunch of shares of CAT for $106. Today...sitting at $168....35-percent gain in 100 days.
Has to be some split coming in 2018 as well for CAT. Really a great stock.
Well... as of today, my two sons have $40,000 more to squander when I pass on. Thank you President Trump!
who knew that it would take Obamas economic/fiscal policies 9 years to kick in. /s
CAT sold off its earnings already. It’s down almost a percent today.
Sounds like the tariffs announced yesterday had no effect on the stock market. Free Traitors™ are unhappy...
The MSM has already said that this is Obozo’s economy, not Trump’s...........
Yeah, Obama. The guy who never even submitted a budget to Congress, let alone passed a federal budget, in 7 of the 8 years he was in office. Yeah, boy that Obama, sure was an economic wizard.
Take that Democrat scum!!
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