US close: Stocks gain after earnings, confidence data

Sharecast

LONDON (ShareCast) - - Ford, Pfizer (NYSE: PFE - news) and DR Horton (NYSE: DHI - news) rise after results
- Apple (NasdaqGS: AAPL - news) plunges, limits gains on Nasdaq
- Consumer confidence rises; durable goods fall
- Taper speculation ramps up ahead of FOMC

Dow Jones: 0.57%
Nasdaq: 0.35%
S&P 500: 0.61%

US markets advanced on Tuesday with the Dow Jones Industrial Average snapping a five-day losing streak as investors reacted to upbeat earnings from Ford, Pfizer and DR Horton, as well as a rise in consumer confidence.

Upside on the Nasdaq was capped though by a sharp fall from tech giant Apple, which fell by 8% after fewer-than-expected iPhone sales in its fiscal first quarter and disappointing revenue guidance for the current quarter.

Equities on the whole were tracking gains in Europe as the recent volatility on currency markets - sparked by concerns over a slowdown in China - eased, with the MSCI Emerging Market Index bouncing off its worst level since August.

However, gains were only modest on Wall Street on Tuesday as investors looked ahead to the Federal Open Market Committee meeting which concludes on Wednesday. The Fed, which began scaling back its monthly asset purchases in December from $85bn to $75bn, will make another $10bn cut this month, according to the consensus forecast.

"Markets are factoring in further tapering, which partially explains the market jitters we have seen in the last few trading days," said Market Analyst Alastair McCaig from IG (LSE: IGG.L - news) .

Consumer confidence rises, durable goods fall

The Conference Board's closely-watched gauge of consumer confidence rose to 80.7 in January from a revised 77.5 in December, coming in ahead of the consensus forecast of 78.

Orders for US durable goods unexpectedly dropped by 4.3% in December to reach $229.3bn, according to the latest figures released by the Department of Commerce, mainly as a result of a fall in orders from volatile sectors such as defence and aircraft. While headline orders were 4.9% higher than December 2012, markets had been looking for a 1.8% increase month-on-month.

The S&P/Case-Shiller Home Price Index was 13.7% higher in November from a year earlier, up slightly from the 13.6% growth in October and more or less in line with forecasts.

Apple plunges; Ford, Pfizer and DR Horton rise

Apple reported that 51m of its smartphones were sold in the quarter ended December 28th 2013, 7% higher than the previous year but below analysts' forecast of 55m units. Meanwhile, the company expects to generate $42-44bn in revenue in its second quarter, far short of the $46.2bn current consensus estimate.

Ford Motor Co (NYSE: F - news) finished higher after saying it made record pre-tax profits in North America and Asia last year with "one of the company's best years ever". Full-year profits rose 7.6% to $8.6bn in 2013 on revenues that increased 10% to $146.9bn.

Drugmaker Pfizer rose strongly after profits in the fourth quarter excluding one-offs came to 56 cents per share, compared with forecasts for 52 cents.

DR Horton surged after the homebuilder reported a 86% jump in fiscal first-quarter earnings following a rise in home prices.

Chemicals group DuPont edged lower after a strong start despite beating Street forecasts with fourth-quarter adjusted earnings of 59 cents per share, up from just 20 cents the year before. The company also announced a $5bn share buyback.

Comcast Corp advanced following reports the cable company is close to a deal to buy assets from Charter Communications (NasdaqGS: CHTR - news) .


S&P 500 - Risers
D. R. Horton Inc. (DHI) $23.00 +9.84%
Waters Corp. (WAT) $110.41 +7.30%
Netflix Inc (NasdaqGS: NFLX - news) . (NFLX) $406.77 +6.70%
Vulcan Materials Co. (VMC) $61.58 +6.10%
T. Rowe Price Group Inc. (TROW) $80.70 +5.48%
Lennar Corp (NYSE: LEN - news) . Class A (LEN) $38.52 +4.36%
Yahoo (TLO: YA-U.TI - news) ! Inc. (YHOO) $38.22 +4.28%
PerkinElmer Inc (NYSE: PKI - news) . (PKI) $42.71 +4.02%
Salesforce.Com Inc. (CRM) $59.37 +4.01%
PulteGroup Inc (NYSE: PHA - news) . (PHM) $19.45 +3.96%

S&P 500 - Fallers
Seagate Technology Plc (STX (KSE: 011810.KS - news) ) $51.52 -11.25%
Apple Inc. (AAPL) $506.50 -7.99%
Corning Inc (NYSE: GLW - news) . (GLW) $17.10 -6.15%
GameStop Corp (NYSE: GME - news) . (GME) $36.05 -3.40%
Lowe's Companies Inc. (LOW) $46.96 -2.17%
QUALCOMM Inc. (QCOM) $71.99 -1.65%
Diamond Offshore Drilling Inc (NYSE: DO - news) . (DO) $50.69 -1.55%
Juniper Networks Inc (NYSE: JNPR - news) . (JNPR) $27.51 -1.47%
Western Digital Corp. (WDC) $83.37 -1.44%
CIGNA Corp (Frankfurt: 866918 - news) . (CI) $85.94 -1.22%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $30.42 +2.56%
Visa Inc (NYSE: V - news) . (V) $220.96 +2.19%
General Electric Co. (GE) $25.46 +1.56%
Caterpillar Inc (NYSE: CAT - news) . (CAT (Taiwan OTC: 4990.TWO - news) ) $92.47 +1.29%
JP Morgan Chase (Other OTC: JFTTL - news) & Co. (JPM) $55.74 +1.18%
Nike Inc (NYSE: NKE - news) . (NKE) $72.71 +1.13%
American Express Co. (AXP) $86.64 +1.07%
Travelers Company Inc. (TRV) $83.10 +0.98%
Goldman Sachs Group Inc. (GS (KSE: 078935.KS - news) ) $166.25 +0.95%
Walt Disney Co. (DIS) $72.88 +0.87%

Dow Jones I.A - Fallers
Cisco Systems Inc (NasdaqGS: CSCO - news) . (CSCO) $21.75 -1.14%
E.I. du Pont de Nemours and Co. (DD) $59.57 -1.11%
Verizon Communications Inc (LSE: VZC.L - news) . (VZ) $47.36 -0.69%
International Business Machines Corp. (IBM (NYSE: IBM - news) ) $176.85 -0.59%
Home Depot Inc. (HD) $78.54 -0.51%
Boeing Co (NYSE: BA - news) . (BA) $137.09 -0.20%

Nasdaq 100 - Risers
Netflix Inc. (NFLX) $406.77 +6.70%
Tesla Motors Inc (Xetra: A1CX3T - news) (TSLA) $178.38 +5.16%
Maxim Integrated Products Inc (NasdaqGS: MXIM - news) . (MXIM) $29.92 +4.65%
Yahoo! Inc. (YHOO) $38.22 +4.28%
Check Point Software Technologies Ltd (NasdaqGS: CHKP - news) . (CHKP) $65.93 +3.76%
Baidu Inc (Xetra: B1C.DE - news) . (BIDU) $164.24 +3.50%
Illumina Inc (NasdaqGS: ILMN - news) . (ILMN) $144.53 +3.05%
F5 Networks Inc (NasdaqGS: FFIV - news) . (FFIV) $109.74 +3.04%
Facebook Inc (NasdaqGS: FB - news) . (FB) $55.14 +2.97%
Regeneron Pharmaceuticals Inc (NasdaqGS: REGN - news) . (REGN) $278.67 +2.93%

Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $10.14 -12.81%
Seagate Technology Plc (STX) $51.52 -11.25%
Apple Inc. (AAPL) $506.50 -7.99%
QUALCOMM Inc. (QCOM) $71.99 -1.65%
Western Digital Corp. (WDC) $83.37 -1.44%
Cisco Systems Inc. (CSCO) $21.75 -1.14%
Broadcom Corp (NasdaqGS: BRCM - news) . (BRCM) $28.96 -1.09%
Sirius XM Holdings Inc (SIRI) $3.63 -0.82%
O'Reilly Automotive Inc. (ORLY) $132.06 -0.75%
Ross Stores Inc (NasdaqGS: ROST - news) . (ROST) $67.77 -0.75%

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