Global equity markets edged higher yesterday, lifted by solid corporate results and benign US inflation data that may give the Federal Reserve enough leeway to keep interest rates lower for longer, but US stocks faltered as some big corporate names sold off following their results.
European stock gains were largely driven by earnings. In addition, GlaxoSmithKline shares jumped 2.6 per cent in London after it said it expects a vaccine against Ebola to be ready later this year.
US tech names were also on Tuesday. But Wall Street headed lower as Boeing and Biogen sold off after their results disappointed investors.
Biogen Idec was the biggest drag on the S&P 500, falling 6.5 per cent after the company reported sales of its big-selling new multiple sclerosis drug, Tecfidera, that fell short of Wall Street's lofty expectations.
Boeing Co lost 3.8 per cent as analysts raised concern about the costs of its 787 Dreamliner jet.
“The season has been mixed, and the global economy is a concern for big multinational companies, but the fact that the market can shake off some bad reports is indicative of what good footing it is on right now,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville. MSCI's all-country world stock index pared some gains, rising 0.18 per cent, while the pan-European FTSEurofirst 300 closed up 0.73 per cent at 1,308.73.
The Dow Jones industrial average fell 44.47 points, or 0.27 per cent, to 16,570.34. The S&P 500 slid 1.74 points, or 0.09 per cent, to 1,939.54, and the Nasdaq Composite lost 11.23 points, or 0.25 per cent, to 4,408.25.
Boeing Co dipped 3.4 per cent, despite reporting higher-than-expected earnings and raising its outlook, on concerns that the costs of its 787 Dreamliner were creeping higher.
But earnings overall remained solid. So far in Europe, 9 per cent of STOXX 600 companies have reported results, of which 65 per cent have met or beaten profit forecasts, according to Thomson Reuters. In the United States, of the 135 companies in the S&P 500 that have reported results, 68.9 per cent beat expectations, higher than the rate over the previous four quarters, Thomson Reuters data show US Treasuries prices fell as data showed a mild rebound in domestic consumer prices in September.
The reading reduced some bets the Federal Reserve might postpone possible plans to raise interest rates in 2015.