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Wall Street indexes ended into the green amid stabilization of the bond markets

The main Wall Street indexes ended the latest trading session with increases after stabilization of the bond markets, which faded the recession fears.

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The main Wall Street indexes ended the latest trading session with increases after stabilization of the bond markets, which faded the recession fears.

The blue-chip index Dow Jones Industrial Average ended with an increase of 140.90 points to 25,657.73 points. Earlier in the day, the index reached a daily peak of 25,796.29 points.

The broader index S&P 500 ended the trading session with a 0.7% increase to 2,818.46 points. Overall, since the beginning of the year, the increase is about 12%. Nasdaq Composite rose by 0.7% to 7,691.52 points.

SP500 index

The yields on 10-year and 30-year US government bonds remained at 2.42%. Only a day earlier yields on 10-year bonds reached their lowest level since December 2017, which inverted the yield curve.

The concerns about the global economy limit the market profits in the broader market. The investors also focus on US housing data for February. The US housing has fallen more than expected in the past month after single-family housing has reached its lowest level in a year and a half.

Nevertheless, housing market prospects are improving against the backdrop of declining interest rates on mortgage loans.

New homeowners decreased by 8.7% on a monthly basis to a seasonally adjusted annual rate of 1.162 million units last month, according to data from the Ministry of Commerce. This is the biggest drop in the past eight months, and bad weather may have contributed to a sharp contraction in housing last month.

Corporate stocks performance

The shares of the banks performed well. The quotations from the SPDR S & P Bank ETF (KBE) added more than 2% to its value. The shares of Citigroup, Bank of America, Goldman Sachs, Morgan Stanley, and J.P. Morgan Chase rose by more than 1%.

The shares of Bed Bath & Beyond jumped by more than 21% after The Wall Street Journal reported that three investor activists were trying to change the company’s board of directors.

Nvidia shares rose by 1.8%.

The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company (+2.18%), 3M Company (+1.98%) and Visa Inc (+1.48%). On the other side, the worst performers were UnitedHealth Group Incorporated (-1.41%), Apple (-1.03%) and Home Depot (-0.18%).

Within the S&P 500, the stocks of Viacom B Inc appreciated by 7.64%, while Biogen Inc added 5.74% and CBS Corporation gained 3.93%.

The stocks of Carnival Corporation wiped out 8.72% amid a decrease in first-quarter net income, due to higher costs and drag of fuel price. The company stocks were seriously affected by the low earnings guidance for 2019.

The FAANG stocks were trading without single direction with Netflix wiping out 1.71% and Alphabet Inc decreasing by 0.63%. The stocks of Facebook and Amazon appreciated by 0.84% and 0.54%, respectively.

Corporate earnings reports

Carnival Corporation reported net income of 336 million USD, or 0.48 USD diluted EPS, for the first quarter of 2019. The adjusted net income during the period was 338 million USD, or 0.49 USD adjusted EPS. both figures are slightly below the same period last year. However, the revenues for the first quarter of 2019 were 4.7 billion USD, higher than the 4.2 billion USD in the prior year. For the full year, the company earnings guidance now reflects 155 million USD, or 0.22 USD per share, due to higher fuel prices and currency fluctuations.

FactSet Research reported quarterly earnings of 2.42 USD per share, beating market expectations. FactSet posted revenues of 354.90 million USD for the quarter ended February 2019, missing the analysts’ estimates. This compares to year-ago revenues of 335.23 million USD. The company has topped consensus revenue estimates two times over the last four quarters.

IHS Markit reported mixed first-quarter fiscal 2019 results with earnings beating the market estimates but revenues missing them. Adjusted earnings per share of 0.60 USD beat the consensus mark by 0.03 USD and increased 13% on a year-over-year basis. Total revenues came in at 1.05 billion USD, missing the consensus mark of 1.06 billion USD but improving 12% from the year-ago quarter. Revenues at the Resources segment totaled 216.8 million USD, up 6% year over year. The Transportation segment experienced year-over-year revenue growth of 7% to reach 288.1 million USD. The company’s revenues at the CMS segment amounted to 132.3 million USD, down 4% year over year, with no organic growth in recurring revenues.