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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/oct/16/markets-edgy-ftse-dow-uk-jobs-wages-report-business-live
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| Wall Street posts biggest gains in seven months as markets roar back - as it happened | |
| (35 minutes later) | |
| Boom! Wall Street has surged more than 2%, racking up its biggest one-day gains since March. | |
| The Dow Jones industrial average jumped by 547 points to end the day at 25,798, a gain of 2.17%. | |
| The S&P 500 gained 2.16%, while a solid tech stock rally swept the Nasdaq 2.9% higher. | |
| As covered earlier, optimism in New York was boosted by strong results by Goldman Sachs and Morgan Stanley, and Johnson & Johnson. | |
| New of a record number of vacancies across US firms, and a jump in industrial production, also calmed some of the anxiety that has been building in the markets. | |
| And no sooner had Wall Street closed, than Netflix was reporting results -- and impressing traders. | |
| Netflix surges more than 16% after beating subscriber estimates, beating on EPS https://t.co/6VUzxKy8j0 pic.twitter.com/cnzAkfX0CJ | |
| Weeeeeeeeeeeeeee#netflix earnings out...subscribers beat pic.twitter.com/h7pqcL5ZAF | |
| That’s probably all for today... | |
| Wall Street may also be taking heart from the latest US employment data. | Wall Street may also be taking heart from the latest US employment data. |
| Today’s JOLTS report shows that the number of job openings in the U.S. reached another all-time high of 7.1 million in August. | Today’s JOLTS report shows that the number of job openings in the U.S. reached another all-time high of 7.1 million in August. |
| The Labor Department also reported that American workers voluntarily quit their jobs at a rate of 2.4% in August, matching July’s 17-year high. | The Labor Department also reported that American workers voluntarily quit their jobs at a rate of 2.4% in August, matching July’s 17-year high. |
| U.S. job openings set a new record high of 7.1 million, and – for the sixth straight month – the number of job openings exceeds the number of job seekers, according to @BLS_gov’s JOLTS report released today: https://t.co/tb9m6YRSCF pic.twitter.com/bVNapQuJEv | U.S. job openings set a new record high of 7.1 million, and – for the sixth straight month – the number of job openings exceeds the number of job seekers, according to @BLS_gov’s JOLTS report released today: https://t.co/tb9m6YRSCF pic.twitter.com/bVNapQuJEv |
| No lack of optimism on Wall Street right now. | No lack of optimism on Wall Street right now. |
| The Dow is up 471 points, which would be its best day since late March if we blew the final whistle now. | The Dow is up 471 points, which would be its best day since late March if we blew the final whistle now. |
| Amid the optimism today, a note of caution rings out. | Amid the optimism today, a note of caution rings out. |
| Investors are their least optimistic about global economic prospects since the financial crisis broke out. | Investors are their least optimistic about global economic prospects since the financial crisis broke out. |
| Bank of America Merrill Lynch’s latest global fund manager survey found that 38% of investors think that global economic growth will decelerate in the next 12 months, the highest percentage since November 2008. | Bank of America Merrill Lynch’s latest global fund manager survey found that 38% of investors think that global economic growth will decelerate in the next 12 months, the highest percentage since November 2008. |
| That may explain why last week’s sell-off caught hold (it doesn’t explain why stocks are back up today, though!) | That may explain why last week’s sell-off caught hold (it doesn’t explain why stocks are back up today, though!) |
| European stock markets also ended the day strongly, with the main indices all sharply higher. | European stock markets also ended the day strongly, with the main indices all sharply higher. |
| Italy led the way, despite hints that Brussels will reject its 2019 budget, teeing up a deeper row with the new government in Rome. | Italy led the way, despite hints that Brussels will reject its 2019 budget, teeing up a deeper row with the new government in Rome. |
| Wall Street is rallying because investors are focusing on “upbeat earnings”, says Marketwatch. | Wall Street is rallying because investors are focusing on “upbeat earnings”, says Marketwatch. |
| We covered earlier that Goldman Sachs and Morgan Stanley had outperformed expectations. That has boosted confidence in America’s corporate sector | We covered earlier that Goldman Sachs and Morgan Stanley had outperformed expectations. That has boosted confidence in America’s corporate sector |
| Johnson & Johnson, the pharmaceuticals group, also did well in the last quarter, partly thank to strong sales of cancer drugs and a pick-up at its baby care business. | Johnson & Johnson, the pharmaceuticals group, also did well in the last quarter, partly thank to strong sales of cancer drugs and a pick-up at its baby care business. |
| Here’s the details: | Here’s the details: |
| Earnings per share: $2.05, adjusted, vs. $2.03 expected | Earnings per share: $2.05, adjusted, vs. $2.03 expected |
| Revenue: $20.3 billion vs. $20.05 billion expected | Revenue: $20.3 billion vs. $20.05 billion expected |
| This all boost confidence in corporate earnings, and suggests that economic demand is still robust. | This all boost confidence in corporate earnings, and suggests that economic demand is still robust. |
| Today’s rally is showing some stamina. | Today’s rally is showing some stamina. |
| The Dow is now up by 408 points, or 1.6%, at 25,661 points, and on track for its best day in several months. | The Dow is now up by 408 points, or 1.6%, at 25,661 points, and on track for its best day in several months. |
| Dow rises more than 400 points, on pace for its best day since April, as strong earnings fuel rally https://t.co/gpyJRAEIWl pic.twitter.com/7X4LNRl22m | Dow rises more than 400 points, on pace for its best day since April, as strong earnings fuel rally https://t.co/gpyJRAEIWl pic.twitter.com/7X4LNRl22m |
| Connor Campbell of City firm SpreadEx sums up the day: | Connor Campbell of City firm SpreadEx sums up the day: |
| With confidence lifted by a pair of strong earnings updates from Goldman Sachs and Morgan Stanley, the Dow Jones showed signs of getting its mojo back after the bell. The US index surged 280 points as the session got underway, rocketing above 25500 having neared 25100 on Monday. | With confidence lifted by a pair of strong earnings updates from Goldman Sachs and Morgan Stanley, the Dow Jones showed signs of getting its mojo back after the bell. The US index surged 280 points as the session got underway, rocketing above 25500 having neared 25100 on Monday. |
| These gains helped feed into the European markets, with the DAX and CAC both shooting up 1%. This despite the unresolved budget issues between Italy and the EU. Not content with sparring with Theresa May and her Brexit negotiators, Jean-Claude Juncker has suggested that the Italian government have a slim chance of getting their controversial budget approved, with the President of the European Commission claiming the EU would ‘revolt’ it Italy got its own way. | These gains helped feed into the European markets, with the DAX and CAC both shooting up 1%. This despite the unresolved budget issues between Italy and the EU. Not content with sparring with Theresa May and her Brexit negotiators, Jean-Claude Juncker has suggested that the Italian government have a slim chance of getting their controversial budget approved, with the President of the European Commission claiming the EU would ‘revolt’ it Italy got its own way. |
| While its peers raced off into the distance, the FTSE was left panting behind, only able to add 20 or so points as the day went on. That’s because the pound, ignoring the ongoing Brexit uncertainty, rose around half a percent against both the dollar and the euro, boosted by a better than forecast, 9 year high wage growth reading. There are plenty more chances for the FTSE to get its revenge, however, not only with Wednesday’s inflation and Thursday’s retail sales data, but the impending, hugely important mid-week summit between EU leaders. | While its peers raced off into the distance, the FTSE was left panting behind, only able to add 20 or so points as the day went on. That’s because the pound, ignoring the ongoing Brexit uncertainty, rose around half a percent against both the dollar and the euro, boosted by a better than forecast, 9 year high wage growth reading. There are plenty more chances for the FTSE to get its revenge, however, not only with Wednesday’s inflation and Thursday’s retail sales data, but the impending, hugely important mid-week summit between EU leaders. |
| Britain’s FTSE 100 index has closed 30 points higher at 7059, as today’s wave of optimism sends shares up. | Britain’s FTSE 100 index has closed 30 points higher at 7059, as today’s wave of optimism sends shares up. |
| However, the rally was held back by currency effects - the strengthening pound pulls down the value of multinational companies’ earnings. | However, the rally was held back by currency effects - the strengthening pound pulls down the value of multinational companies’ earnings. |
| US stocks are pushing higher too! | US stocks are pushing higher too! |
| The S&P 500 and the Dow have both gained 1.5%, as Wall Street tries to recover some of last week’s 4% slide. | The S&P 500 and the Dow have both gained 1.5%, as Wall Street tries to recover some of last week’s 4% slide. |
| European stocks are romping higher in late trading, sending the Stoxx 600 index of the region’s largest companies up 1.5%. | European stocks are romping higher in late trading, sending the Stoxx 600 index of the region’s largest companies up 1.5%. |