Back in Business. Stocks rose across the board on Friday, with all three major market indexes notching gains. After a dry spell, first-quarter earnings season finally arrived, with bank earnings that boosted investors’ moods, and plenty more big names on deck for next week. Finally, a distraction from the dearth of news about U.S.-China negotiations. In today’s After the Bell, we…
…cheer first-quarter results;
…examine other data; and
…see Anadarko soar.
Ending on a High Note
Dow Jones Industrial Average
climbed 269.25 points, or 1.03%, to 26412.30, while the
added 19.09 points, or 0.66%, to 2907.41, and the
gained 36.80 points, or 0.46%, to 7984.16. Each of the indexes ended up for the week, with the Dow eking out a 0.1% gain, the S&P up 0.5%, and the Nasdaq leading the pack with a 0.6% rise.
Investors were cheered that
(GS) to report next week. While shareholders had reason to cheer, the results could bode well for other banks, too: Sandler O’Neill’s Jeffery Harte notes that there are positive read-throughs for peers in JPMorgan’s better-than-expected fixed income currency and commodity (FICC) and debt underwriting revenue.
Not all sectors will necessarily see similar results, LPL Research’s John Lynch writes. He notes that while health care, utilities, and real estate are expected to see small year-over-year profit gains, oil’s slump means that the energy sector’s earnings may fall more than 20%. In addition, analysts are bracing for double-digit declines in the tech sector’s earnings. Combined, energy and tech are likely to be responsible for some 70% of the S&P 500’s projected 4.6% decline in first-quarter earnings.
Still, earnings are just one piece of the puzzle. While markets clamor for drips of tariff negotiation news, there’s other good news to digest. Data from China out overnight showed that exports rose 14.2% year-over-year last month, well ahead of expectations. It’s not huge news, but it is a welcome departure from recent periods of declines. And it at least doesn’t add to fears that global growth is still slwing. JPMorgan’s John Normand writes that his firm’s economists bumped their Forecast Revision Index up by the biggest amount in nine months on the heels of recent data from both the U.S. and China.
The Hot Stock
stock (APC) shot to the top of the S&P 500, following news that
(CVX) plans to buy the company. Anadarko rose $14.98, or 32%, to $61.78. Chevron was the fourth-worst performer in the index, however, slumping 4.9%.
In the past 12 months, Anadarko stock is down 1.6%.
The Biggest Loser
stock (ANTM) slumped to the bottom of the index, on another difficult day for healthcare. Anthem lost $23.44, or 8.5%, to $252.85.
(HUM) all among the S&P 500’s worst performers.
In the past 12 months, Anthem stock has climbed 14.7%.
Write to Teresa Rivas at firstname.lastname@example.org