Stocks end day with meager gains

Updated 50 minutes ago

U.S. stock indexes spent Wednesday drifting and finished with small gains. While big companies continue to report strong profit growth, investors aren’t sure how much longer it will last.

The S&P 500 index rallied 0.8 percent in the morning after fourth-quarter earnings reports from major companies including IBM, consumer products maker Proctor & Gamble and manufacturer United Technologies. Later, traders focused on some less encouraging quarterly reports and the muddled state of trade talks between the United States and China, and the S&P 500 lost 0.8 percent before it gradually turned higher.

Corporate profit growth shot higher in early 2018 after the Republican-backed corporate tax cut, but Liz Ann Sonders, chief investment strategist for Charles Schwab, said corporate profits are growing at a slower clip because of economic weakness in Europe and China and a steep decline in oil prices.

“Even if we end up with the best-case scenario on trade, it doesn’t alleviate … global growth slowing, earnings uncertainty with regard to 2019, (or) monetary policy,” she said.

Smaller companies lagged Wednesday, and most of the companies listed on the New York Stock Exchange finished with losses. Energy companies fared the worst as the price of crude oil fell for the third time in four days after a strong start to 2019.

The S&P 500 added 5.80 points, or 0.2 percent, to 2,638.70 after a 1.4 percent loss Tuesday. The Dow Jones Industrial Average climbed 171.14 points, or 0.7 percent, to 24,575.62.

The Nasdaq composite edged up 5.41 points, or 0.1 percent, to 7,025.77. The Russell 2000 index of smaller-company stocks dipped 3.20 points, or 0.2 percent, to 1,454.26.

IBM rocketed 8.5 percent to $132.89 after its fourth-quarter results surpassed Wall Street estimates. Investors were also pleased with the company’s forecasts for 2019. BMO Research

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US stocks waver as signs of future profit growth wobble

U.S. stock indexes spent Wednesday drifting and finished with small gains. While big companies continue to report strong profit growth, investors aren’t sure how much longer it will last.

The S&P 500 index rallied 0.8 percent in the morning after fourth-quarter earnings from major companies including IBM, consumer products maker Proctor & Gamble, and manufacturer United Technologies. Later, traders focused on some less encouraging quarterly reports and the muddled state of trade talks between the U.S. and China, and the S&P 500 lost 0.8 percent before it gradually turned higher.

Corporate profit growth shot higher in early 2018 after the Republican-backed corporate tax cut, but Liz Ann Sonders, chief investment strategist for Charles Schwab, said corporate profits are now growing at a slower clip because of economic weakness in Europe and China and a steep decline in oil prices.

“Even if we end up with the best case scenario on trade, it doesn’t alleviate… global growth slowing, earnings uncertainty with regard or 2019, (or) monetary policy,” she said.

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The S&P 500 added 5.80 points, or 0.2 percent, to 2,638.70 after a 1.4 percent loss Tuesday. The Dow Jones Industrial Average climbed 171.14 points, or 0.7 percent, to 24,575.62.

The Nasdaq composite edged up 5.41 points, or 0.1 percent, to 7,025.77.

Smaller company stocks tend to do worse than larger ones when prospects for profit growth fades. The Russell 2000 index of smaller-company stocks dipped 3.20 points, or 0.2 percent, to 1,454.26 and most of the companies listed on the New York Stock Exchange finished with losses.

Energy companies fared the worst as the price of crude oil fell for the third

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Toronto stock market falls on lower crude oil prices; U.S. markets up slightly

The Canadian Press
Published Wednesday, January 23, 2019 12:38AM EST
Last Updated Wednesday, January 23, 2019 4:38PM EST

TORONTO — Canada’s main stock index dipped again as lower crude oil prices hurt the key energy sector.

The S&P/TSX composite index was down 25.43 points at 15,208.33.

In New York, the Dow Jones industrial average was up 171.14 points at 24,575.62. The S&P 500 index was up 5.80 points at 2,638.70, while the Nasdaq composite was up 5.41 points at 7,025.77.

The Canadian dollar traded at an average of 74.92 cents US compared with an average of 74.96 cents US on Tuesday.

The March crude contract was down 39 cents at US$52.62 per barrel and the March natural gas contract was down five cents at US$2.92 per mmBTU.

The February gold contract was up 60 cents at US$1,284 an ounce and the March copper contract was down half of a cent at US$2.65 a pound.

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Wall Street edges higher as upbeat earnings dampened by trade, shutdown woes

(Reuters) – Wall Street ended slightly higher on Wednesday after a spate of upbeat earnings reports, but lingering concerns about trade tensions and the longest U.S. government shutdown ever limited the advance.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 22, 2019. REUTERS/Brendan McDermid

All three major U.S. stock indexes closed in positive territory, with the blue chip Dow Jones Industrial Average seeing the biggest gains on positive quarterly results from International Business Machines (IBM.N), Procter & Gamble Co (PG.N) and United Technologies (UTX.N).

Investor sentiment was dampened by reports that business leaders gathered at the World Economic Forum in Davos, Switzerland, were losing confidence in President Donald Trump’s policies that have resulted in the prolonged U.S.-China trade stand-off.

Uncertainty persisted in Washington, where no end to the longest-ever federal government shutdown appeared to be in sight.

The United States could see zero growth in the first quarter if the shutdown extends through March, according to White House economic adviser Kevin Hassett on Wednesday.

“The headlines coming out of Davos are rehashing some of the pessimism,” said Matthew Keator, partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.

“We are in a more anxious market here, coming off the lows of the fourth quarter,” Keator added. “People’s wounds are still fresh.”

Still, a spate of positive earnings helped boost the Dow.

IBM provided the biggest boost to the Dow, rising 8.5 percent after cloud and software services helped its profit come in above analyst estimates and the company offered better-than-expected guidance for 2019.

Procter & Gamble advanced 4.9 percent after the company upped its full-year sales forecast and took advantage of price increases and strong demand to beat analyst earnings estimates.

United Technologies reported a better-than-expected fourth-quarter profit and

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TSX Slightly Off

Jan 23, 2019 (Baystreet.ca via COMTEX) —

Equities in Canada’s largest centre fell below breakeven early Wednesday, and did not display enough gumption to make it all the way back.

The S&P/TSX Composite Index faded 25.43 points to end Wednesday at 15,208.33

The Canadian dollar eked up 0.06 cents to 74.93 cents U.S.

Consumer discretionary stocks led gainers, as Hudson’s Bay Company pointed up 12 cents, or 1.5%, to $7.91.

Next came tech stocks, in which BlackBerry took on 14 cents, or 1.4%, to $10.31, and Constellation Software, strengthening $24.97, or 2.7%, to $952.96.

Real-estate issues were also prosperous, as Colliers International Group gained 72 cents to $79.80.

Energy stocks got bruised, however, as Suncor Energy lost 62 cents, or 1.5%, to $41.50, and Imperial Oil shed nine cents to $36.46.

In financial stocks, Toronto-Dominion dropped 22 cents to $72.19, while Royal Bank slipped $1.45, or 1.5%, to $98.55.

In the health-care field, Canopy Growth drooped 25 cents to $58.00, while Aurora Cannabis docked two cents to $8.26.

On the economic slate, Statistics Canada said retail sales decreased 0.9% to $50.4 billion in November on lower sales at gasoline stations and motor vehicle and parts dealers. Excluding these two sub-sectors, retail sales increased 0.2%.

ON BAYSTREET

The TSX Venture Exchange handed back 0.38 points Wednesday to 592.70

Seven of the 12 TSX subgroups remained positive on the day, led by consumer discretionary stocks, better by 1.8%, while information technology improved 0.9%, and real-estate was 0.3% more solid.

The five laggards were weighed most by energy, trading down 1.3%, financials, sliding 0.5%, and health-care 0.4% sicker.

ON WALLSTREET

The Dow Jones Industrial Average rose on Wednesday on the back of strong quarterly earnings from companies like IBM, United Technologies and Procter & Gamble.

The 30-stock index restored 168.8 points to conclude

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US Stocks Decline Wednesday

U.S. stocks were in negative territory on Wednesday on fears regarding the U.S.-China trade conflict as well as a potential global economic slowdown. The Dow Jones Industrial Average fell more than 65 points to 24,345, the S&P 500 index lost 0.65% to 2,616 and the Nasdaq Composite Index retreated 0.88% to 6,959.

Shares of United Technologies Corp. (NYSE:UTX) jumped more than 4% on Wednesday after the company announced fourth-quarter results. It reported revenue of $18.04 billion, reflecting 15.1% year-over-year growth and beating expectations by $1.22 billion. Earnings were $1.95 per share, beating estimates by 40 cents.

Full-year sales of $66.5 billion were up 11% and adjusted earnings per share grew 14% from the prior-year quarter to $7.61.

Looking ahead, the company expects 2019 adjusted earnings between $7.70 and $8 per share and sales in the range of $75.5 billion to $77 billion.

Gainers

Losers

Global markets

The main European indexes traded lower. The U.K.’s FTSE 100 declined 0.85%, France’s CAC 40 dipped 0.15%, Germany’s Dax fell 0.17% and Spain’s Ibex 35 gained 1.01%.

In Asia, Japan’s Nikkei 225 fell 0.14%, India’s BSE Sensex lost 0.92%, Hong Kong’s Hang Seng advanced 0.01% and China’s Shanghai Composite rose 0.05%.

Disclosure: The author holds no positions in any stocks mentioned.

About the author:

Omar Venerio

Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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Wall Street ends higher, helped by earnings

(Reuters) – Wall Street ended slightly higher on Wednesday after a spate of upbeat earnings reports, but lingering concerns about trade tensions and the longest U.S. government shutdown ever limited the advance.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 22, 2019. REUTERS/Brendan McDermid

All three major U.S. stock indexes closed in positive territory, with the blue chip Dow Jones Industrial Average seeing the biggest gains on positive quarterly results from International Business Machines (IBM.N), Procter & Gamble Co (PG.N) and United Technologies (UTX.N).

Investor sentiment was dampened by reports that business leaders gathered at the World Economic Forum in Davos, Switzerland, were losing confidence in President Donald Trump’s policies that have resulted in the prolonged U.S.-China trade stand-off.

Uncertainty persisted in Washington, where no end to the longest-ever federal government shutdown appeared to be in sight.

The United States could see zero growth in the first quarter if the shutdown extends through March, according to White House economic adviser Kevin Hassett on Wednesday.

“The headlines coming out of Davos are rehashing some of the pessimism,” said Matthew Keator, partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.

“We are in a more anxious market here, coming off the lows of the fourth quarter,” Keator added. “People’s wounds are still fresh.”

Still, a spate of positive earnings helped boost the Dow.

IBM provided the biggest boost to the Dow, rising 8.5 percent after cloud and software services helped its profit come in above analyst estimates and the company offered better-than-expected guidance for 2019.

Procter & Gamble advanced 4.9 percent after the company upped its full-year sales forecast and took advantage of price increases and strong demand to beat analyst earnings estimates.

United Technologies reported a better-than-expected fourth-quarter profit and

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U.S. stocks shrug off midday selloff to finish mostly higher on Wednesday

U.S. stocks shrugged off a midday selloff to finish mostly higher on Wednesday, as investors weighed a round of solid corporate earnings with ongoing uncertainty surrounding the U.S.-China trade talks. The Dow Jones Industrial Average DJIA, +0.70% was the best-performing major index, closing up around 170 points, or 0.7%, aided by solid earnings from IBM Corp. IBM, +8.46% and Procter & Gamble Co. PG, +4.87% The S&P 500 SPX, +0.22% finished up 0.2% and the Nasdaq Composite Index COMP, +0.08% was up less than 0.1%. In other company news, shares of Tesla Inc. TSLA, -3.79% fell more than 4% after RBC downgraded the stock to underperform and cut its price target to $245 from $290. Elsewhere, citing the government shutdown, House Speaker Nancy Pelosi said she would not authorize President Donald Trump to give his State of the Union speech in the chamber.

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US STOCKS-Wall St mixed as shutdown, trade tensions dampen upbeat earnings

(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window.)

* WH adviser warns govt shutdown could lead to zero Q1 GDP growth

* CEOs at Davos express loss of confidence in Trump trade policies

* Dow pulled higher by upbeat earnings from IBM, PG, UTX

* Dow up 0.53 pct, S&P flat, Nasdaq down 0.18 pct (Updates to late afternoon, changes dateline, byline)

By Stephen Culp

Jan 23 (Reuters) – Wall Street struggled for direction on Wednesday, as early gains driven by a spate of upbeat earnings were offset by concerns about a potential economic downturn, trade tensions and longest government shutdown in U.S. history.

While the S&P 500 was flat and the Nasdaq edged lower, the blue chip Dow Jones Industrial Average rose as positive quarterly results from International Business Machines, Procter & Gamble Co, United Technologies and others helped pull the index into positive territory.

Optimism early in the session was dampened by reports that business leaders gathered at the World Economic Forum in Davos, Switzerland, were losing confidence in President Donald Trump’s policies as the effects from the prolonged U.S.-China trade stand-off become more deeply felt.

Uncertainty persisted in Washington, where no end to the longest-ever federal government shutdown appeared to be in sight.

The United States could see zero growth in the first quarter if the shutdown extends through March, according to White House economic adviser Kevin Hassett on Wednesday.

“It relates to the weakness yesterday, people being unsure, a market that’s gotten overbought over a short amount of time,” said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York.

“A lot of people are questioning the government shutdown, and with CEOs saying they’re concerned about the trade policies, this speaks

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