Sign in Subscribe
Software industry

Stocks End Week Higher Following Tech Earnings, Monetary Policy Announcements

Strategic Insights

— 2 min read

Stocks in the U.S. and global markets ended the week on a positive note, driven by strong earnings reports from tech giants, easing monetary policy measures from the European Central Bank, and a interest rate cut in China. The Nasdaq Composite index rose above 5,000, and the S&P 500 moved back into positive ground for the year.

Key Takeaways:

  • The National Association of Home Builders' sentiment index jumped to 64 in October, its highest level since October 2005, surpassing the expected reading of 62.
  • Housing starts rose 6.5% to a 1.206M rate in September, exceeding the expected increase of 1.4%, while building permits declined 5.0% to a 1.1M rate.
  • Existing home sales rose 4.7% to a 5.55M rate in September, outperforming the expected 1.5% increase.
  • Initial jobless claims came in at 259,000 last week, versus the expected 265,000 first-time claims.
  • The European Central Bank (ECB) kept its key interest rates unchanged, with ECB President Mario Draghi hinting at the possibility of further stimulus measures in December.
  • China's GDP growth last quarter came in at 6.9%, above the consensus expectation of 6.8%, while the People's Bank of China cut its one-year lending rate to 4.35% and reduced reserve requirements for banks.
  • Google, Amazon, and Microsoft reported better-than-expected earnings, while IBM's earnings disappointed, leading to sharp declines in its stock price.
  • Valeant's shares plunged after short-selling firm Citron Research alleged that the company artificially inflates its revenue through specialty pharmacies.
  • Several merger and acquisition deals were announced in the tech space, including Western Digital's acquisition of SanDisk for approximately $19 billion.
  • Yum! Brands announced plans to spin out its China unit, while Oprah Winfrey took a 10% stake in Weight Watchers and joined its board.

Statistics:

  • The National Association of Home Builders' sentiment index reached 64 in October.
  • Housing starts rose 6.5% to a 1.206M rate in September.
  • Building permits declined 5.0% to a 1.1M rate in September.
  • Existing home sales rose 4.7% to a 5.55M rate in September.
  • Initial jobless claims came in at 259,000 last week.
  • China's GDP growth last quarter came in at 6.9%.
  • The European Central Bank's (ECB) key interest rates remained unchanged.
  • The People's Bank of China cut its one-year lending rate to 4.35% and reduced reserve requirements for banks by 50 basis points.
  • Western Digital's acquisition of SanDisk was valued at approximately $19 billion.
  • Yum! Brands plans to spin out its China unit.
  • Oprah Winfrey took a 10% stake in Weight Watchers and joined its board.

Sources:

  • TheFlyOnTheWall.com
  • COMTEX

Read more