The Dow Jones Industrial Average wild ride finished higher by 0.7% on the day as strong earning beats from IBM, Procter & Gamble and United Technologies drove the index higher. Earlier in the day, we did see initial gains evaporate as growth concerns grew and White House Council of Economic Advisers Chairman Kevin Hassett’s comment that there is a chance for zero growth in the first quarter if the shutdown lasts until March. The market did not initial react to his comment but we did see the wires focus heavily on his downbeat words, which was quite a negative stance when comparing it to his comments earlier in the month that said the shutdown would have some economic impact. The broader markets however were not able to match the Dow’s gains. A positive day for earnings, but not enough to ease growth concerns.
After hours earning results painted a mixed picture. Texas Instruments initially sold off initially after delivering guidance near the lower end of the analysts’ expectations. Ford posted a big miss with earnings coming at $0.30, much lower than the $0.39 that was eyed. Revenue increased from $41.3 billion to $41.8 billion. Ford shares climbed higher following the release.
The 10-year yield on US Treasuries were up 3 basis points to 2.743%. The high-beta currencies had modest gains to the dollar while gold prices were practically little changed.
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Ed Moya