U.S. Stocks Trim January Rout Amid BOJ Action

The U.S. stocks ended the worst January since 2009 with the best one-day gains in more than four months, after earnings from Microsoft Corp. exceeded expectations and the Bank of Japan stepped up monetary stimulus.

Equity gains accelerated in the final hour, with the strong finish a fitting end to a weak month that featured sharp reversals on an almost daily basis. Microsoft led the surge Friday with its biggest gain in three months. Nine of the S&P 500’s 10 main groups rose at least 1.6 percent. Amazon.com Inc. was a blemish, tumbling 7.6 percent as earnings for the holiday quarter missed estimates.

S & P 500 rose 2.5 percent to 1,939.72 at 4 p.m. in New York. The gauge slumped 5.1 percent in January, its worst start to a year since the height of the financial crisis.

Stocks swung between gains and losses this week as investors assessed corporate earnings and the degree to which central banks will intervene to help stem increasing volatility and a dimming outlook for global growth.

Prior to today’s unexpected action from the Bank of Japan to adopt a negative interest-rate strategy, the European Central Bank signaled last week it could boost stimulus as soon as March. The Federal Reserve said Wednesday it was watching to see how the global economy and markets impact the U.S. outlook.

Source : Bloomberg

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U.S. Stocks Trim January Rout Amid BOJ Action, Microsoft Results

U.S. stocks trimmed their worst monthly rout since 2010, after earnings from Microsoft Corp. exceeded expectations and the Bank of Japan stepped up monetary stimulus in another signal that central banks will act to prevent further turmoil in financial markets.

Microsoft rose 5 percent after more businesses bought its cloud services and Internet-based tools last quarter. Honeywell International Inc. gained 3.8 percent as aerospace sales increased and the company reiterated its 2016 outlook. Amazon.com Inc. tumbled 8 percent as earnings for the holiday quarter missed estimates, and Chevron Corp. lost 2.2 percent after its first quarterly loss since 2002.

The Standard & Poor’s 500 Index rose 1.4 percent to 1,919.67 at 12:06 p.m. in New York. The gauge has slumped 6.1 percent in January, its worst start to a year since the height of the financial crisis in 2009. The Dow Jones Industrial Average advanced 235.11 points, or 1.5 percent, to 16,304.75. The Nasdaq Composite Index increased 1.4 percent. Trading in S&P 500 shares was 24 percent above the 30-day average for this time of day.

Data today showed the economy expanded at a slower pace in the fourth quarter, in line with forecasts, as households tempered spending while businesses cut back on capital investment and made further adjustments to inventories. A separate report showed consumer confidence cooled in January, shaken by a stock-market downturn. A gauge on Chicago-area manufacturing jumped more than forecast to the highest in a year.

Source: Bloomberg

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