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Current Futures: Dow +187.00, S&P +21.10, NASDAQ +42.75
Global markets advanced for the third consecutive day on Wednesday, as investors’ optimism was raised after key companies reports have beat analysts’ expectations so far.
U.S. markets are advancing at a strong pace, after Intel’s earnings beat analysts’ projections. Moreover, Intel’s order surged at a faster pace on record from the first quarter to the second one, adding further hopes that U.S. companies are able to withstand the credit crisis and sluggish consumer spending. Helped by Intel’s results, technology companies were among the best performing sectors in Europe and in the U.S. on Wednesday.
Goldman Sachs and Intel’s earnings helped lift the market’s optimism as investors interpreted these quarterly results as signs that the global economy is recovering, TheLFB-Forex.com Trade Team noted. The view that global demand is picking up once again, caused oil to rally, posting its first gains in 10 days. As such, raw materials companies advanced on average 3% on the day, helping to push the major U.S. indexes higher. Moreover, every one of the 10 industries represented in the U.S. markets advanced on Wednesday.
During the U.S. session, a release showed that inflation rose 0.7% in June, much more than forecasted. However, much of gains seen in the CPI can be traced back to a jump in energy prices. From one year ago, inflation fell by 1.4% in June, being the biggest drop recorded since 1950. At the same time, a different report showed that the business activity in the New York region stayed flat in July compared with the previous month, but still, the index is hovering near the highest level achieved over the last year.
The Dow Jones Index gained 190.52 points (2.28%) to 8,550.01, while the S&P 500 index gained 20.53 points (2.27%) to 926.37.
Crude oil for August delivery was recently trading at $61.60 per barrel, up by $2.10.
Gold for August delivery was recently trading higher by $16.10 to $938.10.