U.S. stocks rebounded from a selloff Wednesday as better-than-estimated results from Facebook Inc. boosted technology shares and crude oil rallied for a third day to lift energy producers.
The Standard & Poor’s 500 Index gained 0.9 percent to 1,899.64 at 9:32 a.m. in New York, after sliding 1.1 percent yesterday, as the gauge alternated between daily gains and losses for a fifth session. Oil rose to a three-week high in New York after Interfax reported that OPEC and other producers will meet in February to discuss a potential output cut.
Stocks dropped yesterday after the Federal Reserve, while largely maintaining its policy stance, signaled financial-market turmoil may pose risks to its economic outlook. An Apple-led slump in technology shares and Boeing Co.’s biggest drop in 14 years also weighed on equities.
Investors are looking to earnings as a possible bright spot in the worst month for stocks in at least five years. Analysts estimate profit at S&P 500 firms fell 6.3 percent in the fourth quarter, better than predictions a week earlier that called for a 7 percent slump. Of those that have already posted results, 80 percent beat earnings projections and 51 percent exceeded sales forecasts. Amazon and Microsoft Corp. are due to report results later today.
Fed policy makers left interest rates unchanged yesterday and said they still expect to raise borrowing costs at a “gradual” pace, while watching to see the impact of the global economy and markets. The comments sent the probability of a March hike lower, to 12 percent from about one-in-four odds before the meeting.
Data today showed orders for business equipment fell in December by the most in 10 months, a sign U.S. companies were slashing capital investment even before the turmoil in global financial markets. Orders for all durable goods — items meant to last at least three years — slumped 5.1 percent, the most since August 2014 and reflecting a broad-based pullback.
Source : Bloomberg