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Stock Market Is in Green due to Earnings and Coronavirus Fears as Vaccine Is Not Tested Yet

Summary:
Indexes went strongly up today as investors were waiting for the Federal Reserve’s interest rate decision (probably stays the same). Traders were also focused on the economic data published today. The Census Bureau reported wholesale inventories decrease of 0.1% in December, while the trade deficit increased .3 billion compared to November. Some companies have already released their quarterly earnings and some are still waited for.The Dow Jones Industrial Average went up at the open by 0.34%, as Apple Inc. climbed 2.06%. The Nasdaq 100 gained 0.55%. Apple Inc. was the best performer, advancing 2.29%. The S&P 500 rose 0.44%, with Boeing Co. growing 2.09%.Treasury yields fell though, while the greenback grew against most of its major peers. Prices of oil, however, fell after it was

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Indexes went strongly up today as investors were waiting for the Federal Reserve’s interest rate decision (probably stays the same). Traders were also focused on the economic data published today. The Census Bureau reported wholesale inventories decrease of 0.1% in December, while the trade deficit increased $5.3 billion compared to November. Some companies have already released their quarterly earnings and some are still waited for.

The Dow Jones Industrial Average went up at the open by 0.34%, as Apple Inc. climbed 2.06%. The Nasdaq 100 gained 0.55%. Apple Inc. was the best performer, advancing 2.29%. The S&P 500 rose 0.44%, with Boeing Co. growing 2.09%.

Treasury yields fell though, while the greenback grew against most of its major peers. Prices of oil, however, fell after it was reported that Yemeni Houthi rebels hit Saudi Aramco‘s facilities in Jizan on the Red Sea using drones and rockets.

AT&T Inc.

American telecommunications giant AT&T Inc.’s revenue was $46.82 billion in the fourth quarter of 2019, which was $17 million less than expected. The company reported diluted earnings per share of $0.89, up from $0.86 a year ago, topping estimates by 2 cents.

McDonald’s

Fast-food giant McDonald’s posted its earnings for the fourth quarter of 2019. Earnings per share is $2.08 for the quarter, more than an estimated $1.82. Revenue in the fourth quarter was $5.35 billion – 0.8% more than expected.

Mastercard

Mastercard reported its GAAP earnings per share rose huge 138% to arrive at $2.07, while revenues grew 16% in the same period, coming at $4.4 billion.

Goldman Sachs

Goldman Sachs Group said its year revenues stood at $36.55 billion. Net revenues were $9.96 billion while net earnings were $1.92 billion for the fourth quarter of 2019.

Apple

Apple Inc. reported its revenue in the first fiscal quarter of 2020 amounted to $91.8 billion, 9% higher year-over-year and beating expectations. Earnings per share were up 19% on an annual basis, standing at $4.99.

Boeing

The Boeing Company’s loss per share was $1.79 in the fourth quarter year-on-year, as the figure plummeted from earnings per share of $5.93 in the last quarter of 2018.

General Electric

General Electric Company (GE) said its net revenue in the fourth quarter stood at $26.2 billion that is 3.6% more than it was estimated.

Ebay

Ebay reported earnings per diluted share (EPS) at $0.69, marking a fall of 14% compared to the same trimester of 2018 while net income reached $558 million in the final quarter of fiscal 2019, dropping 27% year-over-year.

Starbucks

One of the first Bitcoin acceptors, and our favorite coffee maker Starbucks said its net revenue for the first quarter of 2020 stood at $7.1 billion, marking a 7% increase compared to the same period a year ago and in line with market estimates. Diluted earnings per share (EPS) surged 21.3% year on year to $0.74, while net income rose 16.4% to $885.7 million.

We are still waiting for earnings this week of Samsung Electronics, International Paper, Unilever and Shell report on Thursday, and South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil on Friday.

Coronavirus Influence

Let’s just mention that the rise in the market is due to earnings but also due to the development in happenings regarding the coronavirus. Last information says Russia will join China’s efforts to develop a vaccine for the deadly novel coronavirus in an effort to stop spreading the disease.

Also scientists in Australia have succeeded in recreating the new coronavirus outside of China what they have called a “significant breakthrough”. The discovery will be shared with the World Health Organization (WHO) in the hope it may help efforts to diagnose and treat the virus. On the other hand, Hong Kong researchers have allegedly already developed the vaccine but need time to test it.

Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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