U.S. Indexes Extend Gains on Factory Orders and Corporate Earnings

Nichole Harper
04 May, 2015
New York City

Stocks on Wall Street advanced and crude oil traded higher on the supply glut worries. Markets in Europe jumped more than 1% after a private survey showed factory activities in Germany expanded for the fifth month in a row. Cisco Systems said chief executive John Chambers would step down.

[R]3:55 PM – Stocks on Wall Street advanced and crude oil traded higher on the supply glut worries. Markets in Europe jumped more than 1% after a private survey showed factory activities in Germany expanded for the fifth month in a row. Cisco Systems said chief executive John Chambers would step down.[/R]

Stocks and market indexes in New York on Monday and healthcare and technology stocks led the gainers and crude oil traded higher on supply glut worries.

Investors looked ahead to payrolls data on Friday and economists are estimating net job gains in April to be around 213,000 after adding 126,000 in March.

Markets in Europe surged after a private survey indicated fifth monthly increase in factory activities, but the growth rate is declining. And in Asia, a private survey confirmed that Chinese manufacturing sector is stalling.

Cisco Systems was in focus after the company said 17-year company veteran Chuck Robbins would take over as chief executive and John Chambers would step down to become executive chairman.

New orders for manufactured goods in March jumped $9.6 billion or 2.1% to $476.5 billion, followed by seven consecutive monthly decreases, the Department of Commerce reported.

On Wall Street, Tollbooth Strategy Index gained 0.5% or 54.42 to 10,802.10.

S&P 500 index rose 6.47 or 0.3% to 2,114.65 and the Nasdaq Composite Index increased 15.12 or 0.3% to 5,020.91.

Crude oil in New York fell 37 cents to $58.75 a barrel and gold climbed $14.40 to $1,188.90 an ounce.

U.S. Movers

Berkshire Hathaway Inc, the diversified conglomerate reported revenues in the first-quarter ending in March climbed 7% to $48.64 billion from a year ago period.

Net income in the quarter soared 9.5% to $5.16 billion or $3.14 per diluted share compared to $2.15 billion or $2.86 from the same quarter last year.

Comcast Corporation ((CMCSA)) gained 1.1% or 65 cents to $59.06 after the internet and cable services provider said revenues in the first-quarter ending in March jumped 2.6% to $17.85 billion from a year ago period.

Net income in the quarter climbed 7.5% to $2.01 billion or 81 cents per diluted share compared to $1.87 billion or 71 cents from the same quarter last year.

The company plans to repurchase an additional $2.5 billion during the year under repurchase plan of $6.75 billion in fiscal 2015.

Loews Corporation ((L)) edged up 1 cent to $41.74 after the property and casualty insurance provider reported total revenues in the first-quarter ending in March dropped 5.7% to $3.48 billion form a year ago period.

Net income in the quarter climbed 84.7% to $109 million or 29 cents per diluted share compared to $59 million or 15 cents from the same quarter last year.

European Markets

European markets advanced amid corporate earnings and vehicles sales in the euro zone and German factory activities expanded for the fifth month in a row.

Purchasing manager’s index edged lower to 52.1 in April from 52.8 in March, an 11-month high, according to the data released by Markit.

New orders growth slowed in the month and output growth but manufacturing companies increased hiring activities, according to the survey.

In Frankfurt the DAX index jumped 1.5% or 174.14 to 11,628.52 and in Paris, CAC 40 index gained 0.9% or 45.90 to 5,092.39.

adidas AG climbed 2.4% to €75.20 ahead of annual shareholder''''s meeting next week and chief executive Herbert Hainer defended the decision to spinoff Reebok.

Audi AG gained 0.7% to €749.95 after the Germany-based automaker reported revenues in the first-quarter ending in March surged 13.1% to €14.65 billion form €12.95 billion in a year ago period.

Profit in the quarter climbed 6.8% from a year ago to €1.10 billion compared to €1.03 billion.

Audi said operating profit in the passenger car segment climbed 8.5% to €1.41 billion compared to €1.30 billion but operating profit in the motorcycles business declined 14.3% to €12 million compared to €14 million in the same period a year ago

Revenues in the passenger car segment soared 13.2% to €14.49 billion from €12.80 billion and revenues in motorcycles segment jumped 5.8% to €164 million compared to €155 million in the same period a year ago.

Vehicle production in the first-quarter increased to 500,643 vehicles from 447,414 vehicles in a year ago period

BASF SE rose 0.1% to €89.57 after the Germany-based chemical producer said revenues in the first-quarter ending in March jumped 2.8% to €20.07 billion from €19.51 billion in a year ago period.

Net profit in the quarter tumbled 19.8% from a year ago to €1.17 billion compared to €1.46 billion and diluted earnings per share dropped to €1.28 from €1.59.

Asian Markets

Bulls were in charge in Mumbai trading and Sensex index soared 1.8% after auto sales in April were ahead of expectations and two large retailers agreed to merge.

Rupee closed unchanged at 63.47.

The Sensex Index climbed 479.28 or 1.8% to close at 27,490.59. The CNX Nifty advanced 150.45 or 1.8% to 8,331.95.

Adani Ports and Special Economic Zone Limited soared 9.1% to ₹346.40 after the infrastructure developer said net in the fourth-quarter jumped 24.71% to ₹660.73 crore.

Net sales in the quarter soared 54.56% to ₹1,668.25 crore.

Bajaj Auto Limited climbed 7.4% to ₹2,093.70 after the 2-wheel vehicles maker said April sales in the month increased 1% to 336,274 units compared to 331,529 units.

The company added commercial vehicles sales soared 58% to 50,483 units and export sales advanced 7% to 161,598 units while motorcycle sales slipped 5% to 285,791 units.

Maruti Suzuki India Limited increased 0.7% to ₹3,758.65 after the automaker reported April month sales soared 29.6% to 111,748 units compared to 86,196 units in the same period last year.

Domestic sales in the month climbed 27.3% to 100,709 units and exports sales surged 56% to 11,039 units.