Stocks largely rise as the European Central Bank pledges to provide support.
Following a flurry of earnings announcements, Wall Street stocks rose for a third straight session Thursday, while leading bourses on the other side of the Atlantic rose as the European Central Bank committed to keep assistance in place for longer.
On a busy day of US earnings, railroad Union Pacific reported a 30 percent increase in revenue, while Domino’s Pizza reported stronger comparable store sales despite a difficult comparison with the year-ago quarter, when pizza orders spiked during pandemic lockdowns.
According to Briefing.com analyst Patrick O’Hare, the majority of companies reporting had “positive earnings surprises,” and “the excellent earnings news cut across industry groups and sectors.”
Jobless claims surprisingly rose, while existing house sales surged, halting a sequence of decreases as values hit a new high.
After suffering its worst day of 2021 on Monday due to concerns over the Delta version of the coronavirus and soaring inflation, the Dow managed a 0.1 percent gain to improve for the third straight day.
According to a report from Charles Schwab, “the markets appear to be coming to terms with the possible disruption from the global spread of the Delta coronavirus variety and the prospect that we may have reached peak earnings and economic growth rates.”
The European Central Bank (ECB) has stated that monetary support would continue to flow in the eurozone as concerns about the fast-spreading Covid-19 version rise.
The ECB’s Christine Lagarde stated, “The euro area economy is rebounding robustly.” “However, the epidemic continues to throw a pall over the situation, particularly because the Delta variety is becoming an increasing source of uncertainty.”
The highly contagious strain, which has prompted additional restrictions in a number of nations, might stymie the recovery “in services, particularly tourism and hospitality,” she noted.
The ECB’s emergency bond purchases will last until the end of March 2022, or until the ECB “judges that the coronavirus crisis phase is over,” according to Lagarde.
The euro fell versus the dollar and other major currencies, while markets in Paris and Frankfurt rose.
“The ECB confirmed today’s meeting that they are not in a hurry to hike interest rates,” Kathy Lien of BK Asset Management said. “Not only did they avoid any mention of tapering, as other central banks have done, but they also changed their forward guidance to account for higher inflation tolerance.”
Oil prices began to recover in other markets after suffering significant losses at the start of the year. Brief News from Washington Newsday.