(Bloomberg) -- Earnings set the tone for American equities, with strong results from Netflix Inc (NASDAQ:NFLX). bolstering technology indexes, while blue chips were mixed. Treasuries rose and the dollar edged lower.
The Nasdaq 100 Index surged as Netflix powered past subscriber forecasts, while the Dow Jones Industrial Average slipped on disappointing results from Procter & Gamble and Johnson & Johnson (NYSE:JNJ). Blowout earnings in the past two weeks have bolstered stocks to records, with 82 percent of S&P 500 firms that have reported topping estimates.
The 10-year Treasury yield fell after the Bank of Japan signaled it’ll maintain generous stimulus. The dollar dropped toward lows of the year. Emerging-market stocks advanced an eighth day and West Texas crude futures hit $64 a barrel.
“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
With earnings season in full swing, investors held to the risk-on stance that’s taken stocks around the world higher. The synchronized global economic recovery shows no signs of slowing and the BOJ’s signal added to optimism that central banks won’t rush to tap the brakes. Investors also kept an eye on Davos, Switzerland, where the world’s business elites gathered for an annual conference roiled by protectionist moves across the Atlantic.
Terminal users can read more in our markets blog.
Here’s what to watch out for this week:
- Earnings season is in full swing: Novartis, General Electric (NYSE:GE), Intel (NASDAQ:INTC), LVMH Moet Hennessy Louis Vuitton, Starbucks (NASDAQ:SBUX) and Hyundai Motor all come later in the week.
- Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum.
- The European Central Bank announces its rate decision on Jan. 25.
- The U.K. House of Lords is considering Prime Minister Theresa May’s Brexit bill this week.
These are the main moves in markets:
Stocks
- The S&P 500 Index rose 0.3 percent to 2,840.01 as of 1:58 p.m. New York time.
- The Dow Jones Industrial Average slipped 16 points to 26,198.77.
- The Nasdaq Composite Index advanced 0.6 percent.
- The Stoxx Europe 600 Index gained 0.2 percent.
- The MSCI All-Country World Index climbed 0.4 percent to the highest on record.
- The MSCI Emerging Market Index increased 1.0 percent to the highest in a decade.
Currencies
- The Bloomberg Dollar Spot Index fell 0.1 percent.
- The euro rose 0.2 percent to $1.2282.
- The British pound was steady at $1.3980.
- The Japanese yen gained 0.5 percent to 110.40 per dollar, the strongest in almost 19 weeks.
Bonds
- The yield on 10-year Treasuries decreased two basis points to 2.63 percent.
- Germany’s 10-year yield was little changed at 0.56 percent.
- Britain’s 10-year yield was steady at 1.355 percent.
Commodities
- Gold rose 0.3 percent to $1,337.93 an ounce, the highest in a week.
- West Texas Intermediate crude increased 1.5 percent to $64.44 a barrel.
- Copper futures fell 2.6 percent to $311.55 per pound, most since Dec. 5.
