World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US&nbsp;President Donald Trump will press ahead with a large fiscal spending package.

Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks.

MSCI&#39;s global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street&#39;s main indices reached fresh peaks overnight.

Europe&#39;s index of 300 leading shares and Germany&#39;s DAX both rose 1 per cent and Britain&#39;s FTSE 100 was up 0.7 per cent.

Japan&#39;s Nikkei advanced 1.4 per cent, buoyed by data showing the country&#39;s exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US&nbsp;protectionism looms over the outlook.

US&nbsp;futures pointed to a higher open on Wall Street. On Tuesday the S&amp;P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark.

&quot;US&nbsp;stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the &#39;Trump rally&#39; that we saw in the aftermath of the presidential election,&quot; said Kathleen Brooks, research director at City Index.

Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure.

He also met chief executives of the Big Three US&nbsp;automakers to push for more cars to be built in the United States.

&quot;Wednesday&#39;s key theme is the return of the &#39;Trump trade&#39;,&quot; Brooks said.

Bond yields up

The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US&nbsp;investment, after focusing on protectionism in his first few days in office.

The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday.

While the greenback moved in tandem with the snap back in US&nbsp;Treasury yields overnight, it struggled to make much headway in Asian and European trading.

Lingering concerns about growing protectionism from the Trump administration&nbsp;and the potential negative effects on global trade and growth remained close to the surface.

&quot;It has kept dollar/yen flat despite the S&amp;P 500 hitting new highs and Treasury yields edging up,&quot; Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday.

&quot;There&#39;s no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US&nbsp;trade,&quot; he said.

The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month.

Germany&#39;s 10-year Bund yield rose to a six-week high of 0.38 per cent and France&#39;s benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply.

Sterling was steady at $1.2524 after Britain&#39;s Supreme Court ruled that the government would need approval from parliament before formally triggering the country&#39;s departure from the European Union.

The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week.

Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight.

Renewed optimism over Trump&#39;s growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce.

(Reuters)

Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent

World stocks hit a 19-month high on Wednesday, lifted by strong Japanese trade data, stellar European company earnings and hope that US President Donald Trump will press ahead with a large fiscal spending package. Spanish bank Santander was among the big gainers in Europe, its 4 per cent rise in 2016 net profit giving its share price a similar boost and leading the continent-wide rally in bank stocks. MSCI's global share index rose 0.2 per cent to 433.59 points, its highest since June 2015, after two of Wall Street's main indices reached fresh peaks overnight. Europe's index of 300 leading shares and Germany's DAX both rose 1 per cent and Britain's FTSE 100 was up 0.7 per cent. Japan's Nikkei advanced 1.4 per cent, buoyed by data showing the country's exports rose for the first time in 15 months in December, a positive sign for the economy even as talk of US protectionism looms over the outlook. US futures pointed to a higher open on Wall Street. On Tuesday the S&P 500 and Nasdaq both rose to fresh record highs and the Dow Jones Industrials came within 51 points of the elusive 20,000 mark. "US stocks have shown renewed signs of life this week, as the market toyed with the idea of reigniting the 'Trump rally' that we saw in the aftermath of the presidential election," said Kathleen Brooks, research director at City Index. Trump signed two executive orders on Tuesday to move forward with construction of the Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favour of expanding energy infrastructure. He also met chief executives of the Big Three US automakers to push for more cars to be built in the United States. "Wednesday's key theme is the return of the 'Trump trade'," Brooks said. Bond yields up The dollar snapped its recent losing streak and Treasury yields firmed overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US investment, after focusing on protectionism in his first few days in office. The 10-year yield inched up to 2.48 per cent, recovering from its dip below 2.40 per cent earlier in the week, while the two-year yield held firm at 1.23 per cent. It was as low as 1.14 per cent on Monday. While the greenback moved in tandem with the snap back in US Treasury yields overnight, it struggled to make much headway in Asian and European trading. Lingering concerns about growing protectionism from the Trump administration and the potential negative effects on global trade and growth remained close to the surface. "It has kept dollar/yen flat despite the S&P 500 hitting new highs and Treasury yields edging up," Kit Juckes, head of FX research at Societe Generale in London, wrote in a note on Wednesday. "There's no doubt that a major bout of protectionism-induced risk aversion would be yen-supportive, as well as negative for a bunch of currencies that depend on US trade," he said. The dollar slipped 0.1 per cent to 113.65 Yen, and 0.1 per cent against a basket of currencies. The Euro was unchanged at $1.0725, little moved by a surprise fall in German business morale this month. Germany's 10-year Bund yield rose to a six-week high of 0.38 per cent and France's benchmark 10-year yield hit a one-year high of 0.95 per cent, with bond prices weighed down by the rally in stocks and new debt supply. Sterling was steady at $1.2524 after Britain's Supreme Court ruled that the government would need approval from parliament before formally triggering the country's departure from the European Union. The decision overall was seen as clearing the way for Prime Minister Theresa May to get on with launching Brexit talks. Sterling has bounced 4 per cent over the last week. Oil prices gave back much of their overnight gains. Brent futures dipped 0.5 per cent to $55.13 per barrel, after rising 0.4 per cent overnight. Renewed optimism over Trump's growth policies took the wind out of a recent rally in safe-haven gold, which fell 0.6 per cent to $1,201 per ounce. (Reuters)

Reignited 'Trump trades' help world stocks hit 19-month high

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US&nbsp;President Donald Trump&#39;s surprise election victory.

The rally was reignited by Trump&#39;s signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20.

&nbsp;

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Great! <a href="https://twitter.com/hashtag/Dow20K?src=hash">#Dow20K</a> <a href="https://t.co/wXFhXBLgag">https://t.co/wXFhXBLgag</a>
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&nbsp;

The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration.

But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration&#39;s new policies.

&quot;A seminal moment. It is just a number but it is a big number, it is certainly a flashy number,&quot; said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

&quot;There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought.&quot;

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones.

The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain.

The two banks have benefited as investors bet that Trump&#39;s expected fiscal stimulus will trigger inflation and stoke a rise in interest rates.

On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top.

At 9:33 am&nbsp;ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&amp;P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13.

The S&amp;P and the Nasdaq also hit record intraday highs.

Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell.

The S&amp;P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows.

(Reuters)

The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US President Donald Trump's surprise election victory. The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20. Great! #Dow20K https://t.co/wXFhXBLgag — President Trump (@POTUS) January 25, 2017 × The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration. But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration's new policies. "A seminal moment. It is just a number but it is a big number, it is certainly a flashy number," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought." If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones. The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest. The rise from 18,000 to 19,000 took the Dow 483 trading sessions. The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain. The two banks have benefited as investors bet that Trump's expected fiscal stimulus will trigger inflation and stoke a rise in interest rates. On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top. At 9:33 am ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13. The S&P and the Nasdaq also hit record intraday highs. Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell. The S&P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows. (Reuters)

Dow hits 20,000 mark as post-election rally resumes

The rally in regional US bank stocks that followed last month&#39;s election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further.

The S&amp;P 600 index of small-cap banks has surged more than 20 per cent since Trump&#39;s surprise November 8 victory, while their large-cap peers on the S&amp;P 500 index have jumped over 17 per cent.

Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent.

Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump&#39;s promises of tax cuts and regulatory changes materialise, according to Sandler O&#39; Neill analyst Brad Milsaps.

But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen.

Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source.

&quot;It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates,&quot; said Milsaps.

Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration.

Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts.

They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations.

&quot;There&#39;s definitely more opportunity on the regional banking level,&quot; David Lebovitz, global market strategist at JPMorgan Asset Management. &quot;When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue.&quot;

Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US&nbsp;10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday.

Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year.

In relation to rising interest rates alone, Keefe, Bruyette &amp; Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018.

&quot;Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they&#39;re turning positive on higher revenues, which is even more important,&quot; said KBW analyst Christopher McGratty. &quot;They don&#39;t look cheap but there&#39;s a justifiable path toward the valuations they&#39;re at.&quot;

The current forward price-to-earnings for the S&amp;P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011.

McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples.

(Reuters)

The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory

The rally in regional US bank stocks that followed last month's election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further. The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory, while their large-cap peers on the S&P 500 index have jumped over 17 per cent. Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent. Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump's promises of tax cuts and regulatory changes materialise, according to Sandler O' Neill analyst Brad Milsaps. But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen. Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source. "It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates," said Milsaps. Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration. Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts. They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations. "There's definitely more opportunity on the regional banking level," David Lebovitz, global market strategist at JPMorgan Asset Management. "When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue." Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US 10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday. Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year. In relation to rising interest rates alone, Keefe, Bruyette & Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018. "Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they're turning positive on higher revenues, which is even more important," said KBW analyst Christopher McGratty. "They don't look cheap but there's a justifiable path toward the valuations they're at." The current forward price-to-earnings for the S&P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011. McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples. (Reuters)

Wall Street Week Ahead: Small banks rally pauses but may not be over yet

In an attempt to reassure investors after Brexit, British Prime Minister Theresa May met Wall Street finance leaders on Monday to discuss the consequences of the vote. 
 
She met officials from Goldman Sachs, Morgan Stanley and other banks discussing investments for a post-Brexit Europe. 
 
&quot;Every working day in the United Kingdom one million people wake up and go to work for an American company. And every day in the United States one million people wake up and go to work for a UK company,&quot; May told the business leaders. 
 
&quot;So you see there is reciprocity,&quot; said May, who is in New York to attend the United Nations General Assembly. &quot;The UK is going to be out there. We will be looking &lrm;for business. And ladies and gentlemen, please feel free to invest in the UK.&quot; 
 
May asked the business leaders what issue they wanted to be addressed in the Brexit negotiations. She expressed confidence that she would yield a good trade deal with the European Union.&nbsp; 
 
The United States is the largest single inward investor into Britain. Five of its largest banks have already started talks with European regulators about procedures for obtaining banking licenses and meeting capital requirements in EU countries post Britain&#39;s exit.&nbsp; 
 
London and Brussels are expected to conduct lengthy talks after May triggers the EU treaty&#39;s Article 50. 
 
(WION with inputs from agencies) 
&nbsp;

May sought to rebuild economic confidence among US businesses, the largest investors in Britain

In an attempt to reassure investors after Brexit, British Prime Minister Theresa May met Wall Street finance leaders on Monday to discuss the consequences of the vote. She met officials from Goldman Sachs, Morgan Stanley and other banks discussing investments for a post-Brexit Europe. "Every working day in the United Kingdom one million people wake up and go to work for an American company. And every day in the United States one million people wake up and go to work for a UK company," May told the business leaders. "So you see there is reciprocity," said May, who is in New York to attend the United Nations General Assembly. "The UK is going to be out there. We will be looking ‎for business. And ladies and gentlemen, please feel free to invest in the UK." May asked the business leaders what issue they wanted to be addressed in the Brexit negotiations. She expressed confidence that she would yield a good trade deal with the European Union. The United States is the largest single inward investor into Britain. Five of its largest banks have already started talks with European regulators about procedures for obtaining banking licenses and meeting capital requirements in EU countries post Britain's exit. London and Brussels are expected to conduct lengthy talks after May triggers the EU treaty's Article 50. (WION with inputs from agencies)

British PM Theresa May meets Wall Street banks to discuss post-Brexit investments

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks, especially on the big Wall Street banks. 
 
The settlement proposal, made during negotiations between the US Department of Justice and Deutsche Bank over claims that the German bank mis-sold mortgage-backed securities, was larger than expected. 
 
Deutsche Bank&#39;s US-listed shares were down 9.4 per cent. Dow components Goldman Sachs and JPMorgan fell 0.9 per cent each. 
 
The S&amp;P 500 financial index dropped 0.74 per cent, dragging down the benchmark index the most. The KBW Bank index fell 0.90 per cent, putting it on track for its second straight week of decline. 
 
Traders have all but ruled out the possibility of the Federal Reserve raising interest rates at its meeting that starts next Tuesday. Investors will instead look for clues on when the central bank will eventually pull the trigger. 
 
At 12:25 a.m. ET (1625 GMT), the Dow Jones Industrial Average was down 63.62 points, or 0.35 per cent, at 18,148.86. 
 
The S&amp;P 500 was down 8.16 points, or 0.38 per cent, at 2,139.1. 
 
The Nasdaq Composite was down 6.49 points, or 0.12 percent, at 5,243.20. 
 
The technology index dropped 0.52 per cent, pulled down by Apple&#39;s a 0.8 per cent decline and Oracle&#39;s 4.1 per cent drop following a weak quarterly profit. 
 
Helping limit losses was Intel&#39;s 2.5 per cent gain after the chipmaker raised its third-quarter revenue forecast. 
 
The CBOE Market Volatility index Wall Street&#39;s &quot;fear gauge&quot;, reversed course and was down 0.43 per cent despite the expiry of futures and options on stocks and indexes, or quadruple witching. 
 
Declining issues outnumbered advancing ones on the NYSE by 1,989 to 911. On the Nasdaq, 1,492 issues fell and 1,245 advanced. 
 
The S&amp;P 500 index showed five new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 35 new lows. 
 
(Reuters)

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks, especially on the big Wall Street banks. The settlement proposal, made during negotiations between the US Department of Justice and Deutsche Bank over claims that the German bank mis-sold mortgage-backed securities, was larger than expected. Deutsche Bank's US-listed shares were down 9.4 per cent. Dow components Goldman Sachs and JPMorgan fell 0.9 per cent each. The S&P 500 financial index dropped 0.74 per cent, dragging down the benchmark index the most. The KBW Bank index fell 0.90 per cent, putting it on track for its second straight week of decline. Traders have all but ruled out the possibility of the Federal Reserve raising interest rates at its meeting that starts next Tuesday. Investors will instead look for clues on when the central bank will eventually pull the trigger. At 12:25 a.m. ET (1625 GMT), the Dow Jones Industrial Average was down 63.62 points, or 0.35 per cent, at 18,148.86. The S&P 500 was down 8.16 points, or 0.38 per cent, at 2,139.1. The Nasdaq Composite was down 6.49 points, or 0.12 percent, at 5,243.20. The technology index dropped 0.52 per cent, pulled down by Apple's a 0.8 per cent decline and Oracle's 4.1 per cent drop following a weak quarterly profit. Helping limit losses was Intel's 2.5 per cent gain after the chipmaker raised its third-quarter revenue forecast. The CBOE Market Volatility index Wall Street's "fear gauge", reversed course and was down 0.43 per cent despite the expiry of futures and options on stocks and indexes, or quadruple witching. Declining issues outnumbered advancing ones on the NYSE by 1,989 to 911. On the Nasdaq, 1,492 issues fell and 1,245 advanced. The S&P 500 index showed five new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 35 new lows. (Reuters)

Wall Street hit as Deutsche Bank fine risk triggers bank rout

Consumers are flocking to discount apparel retailers, but investors are faced with nothing close to a bargain as stocks in the sector rally. 
 
Few expect shares of off-price retailer TJX Companies&#39; or its peer, Ross Stores, to go on a fire sale next week when they report earnings, as the trends that have favoured them over their higher-priced competitors are expected to persist. 
 
Just this year, TJX shares have gained nearly 17 per cent and Ross Stores has added slightly more, compared with gains closer to seven per cent in both the S&amp;P 500 retail index and the broader S&amp;P 500. 
 
&quot;TJX and Ross have outperformed and will continue to outperform because they are good merchandisers. They get the selection right,&rdquo; said Kim Forrest, senior equity research analyst Fort Pitt Capital Group in Pittsburgh. 
 
&quot;I don&rsquo;t own these and I regret it,&quot; she said, adding that she will wait for a stumble in the price to jump in. 
 
Contrary to the discounts shoppers find at TJX and Ross, investors are faced with a high price for their shares. At near 22 times expected earnings over the next 12 months, their price-to-earnings ratio is at its highest level in at least 15 years, according to Thomson Reuters Datastream. 
 
Both stocks set record closing highs on Friday ahead of TJX&#39;s quarterly report due on Tuesday. Ross is expected to report on Thursday. 
 
But the stock gains could continue, as sales are expected to continue to grow and investors welcome the revenue increase. Same-store sales are expected to have risen 3.3 per cent last quarter for TJX and 2.1 per cent for Ross, according to Thomson Reuters data. 
 
&quot;The off-price sector has developed a successful strategy to keep consumers coming back,&quot; said New York-based Christina Boni, a senior analyst at Moody&#39;s Investors Service. 
 
&quot;Stores have the unique ability to change product offerings quickly, which creates a &#39;scarcity&#39; effect that makes consumers feel more compelled to purchase on the spot, rather than risk someone else beating them to the checkout line,&quot; she said. 
 
Shoppers are indeed favouring discounters, and the competition is trying to catch up. Both Macy&#39;s and Nordstrom talked up their off-price lines - Backstage and Nordstrom Rack - in their most recent earnings reports. 
 
&quot;Consumers have started moving to dollar stores and places like off-price chains&quot; at the expense of Macy&#39;s and other department stores, said Burt Flickinger, managing director at retail consultancy Strategic Resources Group in New York. 
 
Activity in the options market has been leaning toward bets on declines in stock prices in the broad retail sector. In addition, options on discount retailers, including Burlington, TJX companies and Ross Stores, show a similar sense of caution. 
 
Apparel retailers reporting earnings next week include L Brands, Gap Inc and Urban Outfitters. 
 
(Reuters)

Contrary to the discounts shoppers find at TJX and Ross, investors are faced with a high price for their shares

Consumers are flocking to discount apparel retailers, but investors are faced with nothing close to a bargain as stocks in the sector rally. Few expect shares of off-price retailer TJX Companies' or its peer, Ross Stores, to go on a fire sale next week when they report earnings, as the trends that have favoured them over their higher-priced competitors are expected to persist. Just this year, TJX shares have gained nearly 17 per cent and Ross Stores has added slightly more, compared with gains closer to seven per cent in both the S&P 500 retail index and the broader S&P 500. "TJX and Ross have outperformed and will continue to outperform because they are good merchandisers. They get the selection right,” said Kim Forrest, senior equity research analyst Fort Pitt Capital Group in Pittsburgh. "I don’t own these and I regret it," she said, adding that she will wait for a stumble in the price to jump in. Contrary to the discounts shoppers find at TJX and Ross, investors are faced with a high price for their shares. At near 22 times expected earnings over the next 12 months, their price-to-earnings ratio is at its highest level in at least 15 years, according to Thomson Reuters Datastream. Both stocks set record closing highs on Friday ahead of TJX's quarterly report due on Tuesday. Ross is expected to report on Thursday. But the stock gains could continue, as sales are expected to continue to grow and investors welcome the revenue increase. Same-store sales are expected to have risen 3.3 per cent last quarter for TJX and 2.1 per cent for Ross, according to Thomson Reuters data. "The off-price sector has developed a successful strategy to keep consumers coming back," said New York-based Christina Boni, a senior analyst at Moody's Investors Service. "Stores have the unique ability to change product offerings quickly, which creates a 'scarcity' effect that makes consumers feel more compelled to purchase on the spot, rather than risk someone else beating them to the checkout line," she said. Shoppers are indeed favouring discounters, and the competition is trying to catch up. Both Macy's and Nordstrom talked up their off-price lines - Backstage and Nordstrom Rack - in their most recent earnings reports. "Consumers have started moving to dollar stores and places like off-price chains" at the expense of Macy's and other department stores, said Burt Flickinger, managing director at retail consultancy Strategic Resources Group in New York. Activity in the options market has been leaning toward bets on declines in stock prices in the broad retail sector. In addition, options on discount retailers, including Burlington, TJX companies and Ross Stores, show a similar sense of caution. Apparel retailers reporting earnings next week include L Brands, Gap Inc and Urban Outfitters. (Reuters)

Wall Street: Cheap clothes make for pricey stocks at TJX, Ross

Asian stocks inched up on Friday, after a surge in oil prices helped propel Wall Street to record highs overnight, while Chinese economic indicators that missed expectations did not dent gains in mainland shares. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan nudged up 0.2 per cent. It was on track to gain 1.9 per cent for the week. 
 
Both China&#39;s CSI300 index and the Shanghai Composite rose about 0.5 pe rcent after fixed asset investment, retail sales and industrial output all rose but were below expectations. Both indexes were headed for gains of about 1.4 per cent for the week. 
 
Fixed asset investment from January to July increased by 8.1 per cent from a year earlier, the slowest rate in more than 16 years, compared with expectations for 8.8 per cent. 
 
July retail sales increased 10.2 per cent, versus 10.6 per cent the previous month and a forecast 10.5 per cent. Industrial output rose 6.0 per cent from a year earlier, slowing from June&#39;s 6.2 per cent and just missing forecasts of 6.1 per cent. 
 
Hong Kong shares rose 0.7 per cent and were at their highest in more than eight months. 
 
Japan&#39;s Nikkei rose 0.7 per cent on a slightly weaker yen, and is poised to end the week 3.7 per cent higher. 
 
South Korea&#39;s Kospi, which touched the highest level since July 2015, was little changed. Australian stocks gained 0.3 per cent. 
 
The S&amp;P 500, the Dow and Nasdaq all closed at historic highs on Thursday for the first time since 1999 on higher crude oil and upbeat corporate results. 
 
The pan-European FTSEurofirst 300 stock index also jumped, climbing 0.85 per cent to its highest close since late May. 
 
MSCI&#39;s 46-country All World index held close to a one-year high touched overnight. 
 
Supporting investor appetite for risk, oil prices climbed more than 4 per cent overnight after a Saudi oil minister hinted at possible action to stabilise prices and triggered a round of buying. 
 
They retained that momentum on Friday, with US crude futures up 0.5 per cent at $43.72 a barrel, on track to gain 4.5 per cent on the week. 
 
Global benchmark Brent crude climbed 0.3 per cent to $46.18, set to end the week 4.6 per cent higher. 
 
&quot;Asia Pacific markets are set to finish the week on a high following strong leads from European and US investors,&quot; wrote Michael McCarthy, chief market strategist at CMC Markets. 
 
&quot;Industrial commodities rose, led by oil, and overnight trading displayed &#39;risk on&#39; characteristics despite the lack of an obvious trigger. Important data from China may change the course of the trading day.&quot; 
 
Global markets will also sift through the string of US data, notably retail sales, due later in the session for latest cues about the world&#39;s largest economy and whether it is robust enough to withstand further monetary tightening. 
 
US retail sales are expected to show a 0.4 per cent monthly increase in July, according to the median estimate of 64 economists polled by Reuters. 
 
In currencies, the dollar rose after San Francisco Fed President John Williams told the Washington Post that the US central bank should raise rates this year because of improving labour market conditions and the likelihood that inflation is heading higher. 
 
The greenback inched up 0.1 per cent to 102.035 yen after gaining 0.7 per cent on Thursday, and is heading for a 0.25 per cent weekly rise. The euro was steady at $1.11375 after losing 0.3 per cent overnight. 
 
The dollar index, which tracks the greenback against a basket of six major peers, rose 0.1 per cent to 95.924, but was on track for a loss of 0.3 per cent for the week. 
 
The New Zealand dollar slipped 0.1 per cent to $0.7202 after surging on Thursday to $0.7351, its highest in more than a year after the Reserve Bank of New Zealand cut rates by 25 basis points to 2.0 per cent, a smaller cut than some investors had expected. 
 
The Australian dollar dipped 0.3 per cent to $0.7678 . 
 
(Reuters) 
 
 
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Hong Kong shares rose 0.7 per cent and were at their highest in eight months,?Japan's Nikkei rose 0.7 per cent on a slightly weaker Yen

Asian stocks inched up on Friday, after a surge in oil prices helped propel Wall Street to record highs overnight, while Chinese economic indicators that missed expectations did not dent gains in mainland shares. MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.2 per cent. It was on track to gain 1.9 per cent for the week. Both China's CSI300 index and the Shanghai Composite rose about 0.5 pe rcent after fixed asset investment, retail sales and industrial output all rose but were below expectations. Both indexes were headed for gains of about 1.4 per cent for the week. Fixed asset investment from January to July increased by 8.1 per cent from a year earlier, the slowest rate in more than 16 years, compared with expectations for 8.8 per cent. July retail sales increased 10.2 per cent, versus 10.6 per cent the previous month and a forecast 10.5 per cent. Industrial output rose 6.0 per cent from a year earlier, slowing from June's 6.2 per cent and just missing forecasts of 6.1 per cent. Hong Kong shares rose 0.7 per cent and were at their highest in more than eight months. Japan's Nikkei rose 0.7 per cent on a slightly weaker yen, and is poised to end the week 3.7 per cent higher. South Korea's Kospi, which touched the highest level since July 2015, was little changed. Australian stocks gained 0.3 per cent. The S&P 500, the Dow and Nasdaq all closed at historic highs on Thursday for the first time since 1999 on higher crude oil and upbeat corporate results. The pan-European FTSEurofirst 300 stock index also jumped, climbing 0.85 per cent to its highest close since late May. MSCI's 46-country All World index held close to a one-year high touched overnight. Supporting investor appetite for risk, oil prices climbed more than 4 per cent overnight after a Saudi oil minister hinted at possible action to stabilise prices and triggered a round of buying. They retained that momentum on Friday, with US crude futures up 0.5 per cent at $43.72 a barrel, on track to gain 4.5 per cent on the week. Global benchmark Brent crude climbed 0.3 per cent to $46.18, set to end the week 4.6 per cent higher. "Asia Pacific markets are set to finish the week on a high following strong leads from European and US investors," wrote Michael McCarthy, chief market strategist at CMC Markets. "Industrial commodities rose, led by oil, and overnight trading displayed 'risk on' characteristics despite the lack of an obvious trigger. Important data from China may change the course of the trading day." Global markets will also sift through the string of US data, notably retail sales, due later in the session for latest cues about the world's largest economy and whether it is robust enough to withstand further monetary tightening. US retail sales are expected to show a 0.4 per cent monthly increase in July, according to the median estimate of 64 economists polled by Reuters. In currencies, the dollar rose after San Francisco Fed President John Williams told the Washington Post that the US central bank should raise rates this year because of improving labour market conditions and the likelihood that inflation is heading higher. The greenback inched up 0.1 per cent to 102.035 yen after gaining 0.7 per cent on Thursday, and is heading for a 0.25 per cent weekly rise. The euro was steady at $1.11375 after losing 0.3 per cent overnight. The dollar index, which tracks the greenback against a basket of six major peers, rose 0.1 per cent to 95.924, but was on track for a loss of 0.3 per cent for the week. The New Zealand dollar slipped 0.1 per cent to $0.7202 after surging on Thursday to $0.7351, its highest in more than a year after the Reserve Bank of New Zealand cut rates by 25 basis points to 2.0 per cent, a smaller cut than some investors had expected. The Australian dollar dipped 0.3 per cent to $0.7678 . (Reuters)

Asia rises on Wall Street's record highs while China data misses forecasts

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. 
 
Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. 
 
&quot;Today, it seems like whatever oil does, equities will follow,&quot; said Peter Cardillo, chief market economist at First Standard Financial in New York. 
 
The S&amp;P 500 index&#39;s technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&amp;P and the Nasdaq. 
 
Microchip Tech soared 9.4 per cent to $61.980 after the company&#39;s first-quarter revenue beat analysts&#39; estimate. 
 
A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. 
 
At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. 
 
The S&amp;P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. 
 
The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. 
 
Seven of the 10 major S&amp;P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. 
 
Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. 
 
Endo International surged 10.5 per cent to $20.12 after the drugmaker&#39;s second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&amp;P 500 companies. 
 
Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. 
 
The S&amp;P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. 
 
(Reuters)

Oil edged further above $45 on estimates of a drop in US inventories

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. "Today, it seems like whatever oil does, equities will follow," said Peter Cardillo, chief market economist at First Standard Financial in New York. The S&P 500 index's technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&P and the Nasdaq. Microchip Tech soared 9.4 per cent to $61.980 after the company's first-quarter revenue beat analysts' estimate. A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. The S&P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. Seven of the 10 major S&P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. Endo International surged 10.5 per cent to $20.12 after the drugmaker's second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&P 500 companies. Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. The S&P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. (Reuters)

Wall Street near record highs as oil, tech stocks lift

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru&#39;s new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. 
 
The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori&#39;s party, which controls Congress, saying he would need their help to pass reforms. 
 
He promised to work for all Peruvians, outlining his vision for a &quot;social revolution&quot; in his inaugural address before Congress. 
 
&quot;I will seek equity, equality and fraternity among all Peruvians,&quot; said the man known simply as PPK. 
 
Peru needs &quot;not just economic, but human growth,&quot; he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. 
 
The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. 
 
Peru is one of Latin America&#39;s fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. 
 
Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. 
 
The Fujimori problem 
 
Foreign investors and markets have welcomed the new president as a reliable pair of hands. 
 
&quot;Kuczynski&#39;s government is likely to remain highly supportive of foreign investment, with minimalist state intervention,&quot; said Diego Moya-Ocampos of consultancy IHS Country Risk. 
 
He predicted Kuczynski would seek to expand Peru&#39;s domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president&#39;s strategy to make Peru a &quot;metallurgical powerhouse.&quot; 
 
But a large bump is lurking in the road.&nbsp;Kuczynski&#39;s party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. 
 
The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori.&nbsp;Her right-wing party, Popular Force, has 73 lawmakers in Congress. 
 
None of them applauded at any point during the inauguration, Kuczynski&#39;s camp complained.&nbsp;It could prove tough for the new president to advance his reform agenda. 
 
There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. 
 
In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. 
 
The race opened old wounds dating back to the 1990s, when Fujimori&#39;s father was president. 
 
Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. 
 
But his authoritarian legacy was also heavy baggage for his daughter. 
 
Her 78-year-old father&#39;s supporters are now pressuring Kuczynski to pardon him. 
 
The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 
 
&#39;El Gringo&#39; 
 
Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. 
 
Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. 
 
He stressed his age and experience during the campaign. 
 
&quot;I&#39;m old, but my noggin is still working,&quot; he said.&nbsp;But he sometimes struggles to connect with ordinary Peruvians. 
 
He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him &quot;El Gringo.&quot; 
 
Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. 
 
(AFP)

The Pedro Kuczynski choked as he took the oath of office. He vowed to kick-start the economy and bring about a social revolution

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru's new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori's party, which controls Congress, saying he would need their help to pass reforms. He promised to work for all Peruvians, outlining his vision for a "social revolution" in his inaugural address before Congress. "I will seek equity, equality and fraternity among all Peruvians," said the man known simply as PPK. Peru needs "not just economic, but human growth," he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. Peru is one of Latin America's fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. The Fujimori problem Foreign investors and markets have welcomed the new president as a reliable pair of hands. "Kuczynski's government is likely to remain highly supportive of foreign investment, with minimalist state intervention," said Diego Moya-Ocampos of consultancy IHS Country Risk. He predicted Kuczynski would seek to expand Peru's domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president's strategy to make Peru a "metallurgical powerhouse." But a large bump is lurking in the road. Kuczynski's party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori. Her right-wing party, Popular Force, has 73 lawmakers in Congress. None of them applauded at any point during the inauguration, Kuczynski's camp complained. It could prove tough for the new president to advance his reform agenda. There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. The race opened old wounds dating back to the 1990s, when Fujimori's father was president. Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. But his authoritarian legacy was also heavy baggage for his daughter. Her 78-year-old father's supporters are now pressuring Kuczynski to pardon him. The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 'El Gringo' Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. He stressed his age and experience during the campaign. "I'm old, but my noggin is still working," he said. But he sometimes struggles to connect with ordinary Peruvians. He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him "El Gringo." Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. (AFP)

Former Wall Street banker Kuczynski sworn in as Peruvian president

Wall Street was set to open higher today, setting the stage for the Dow and S&amp;P 500 to hit fresh highs, as US corporate reports continue to top expectations. 
 
Equity futures, which dipped after the close on Friday, shrugged off the impact of an attempted coup in Turkey. 
 
With the S&amp;P and Dow hitting record intraday highs almost everyday last week, investors will assess the quality of second-quarter earnings to justify stock valuations. 
 
&quot;The markets are going to be driven by earnings reports while geopolitical problems take a backseat for now,&quot; said Peter Cardillo, chief market economist at First Standard Financial in New York. 
 
Bank of America profits show corporations making money&nbsp; 
 
Bank of America, the number 2 US bank by assets, and fellow S&amp;P component Hasbro posted better than expected profit for the second quarter, mirroring the results of the few companies, including big banks, that reported last week. 
 
&quot;The handful of results that we have got have been okay and earnings have mostly beaten expectations. It shows that corporations are still making money, and that&#39;s what counts,&quot; Cardillo said. 
 
Dow e-minis were up 32 points, or 0.17 per cent at 8:27 a.m. ET (1227 GMT), with 28,500 contracts changing hands. 
 
S&amp;P 500 e-minis were up 5.75 points, or 0.27 per cent, with 186,056 contracts traded. 
 
Nasdaq 100 e-minis were up 10.5 points, or 0.23 per cent, on volume of 25,766 contracts. 
 
Bank of America shares rose nearly 1 per cent to $13.79 premarket. Hasbro was off 0.6 pe rcent. 
 
Investors favouring riskier assets? &nbsp; 
 
British chip designer ARM&#39;s US-listed shares surged 43.5 per cent to $67.64 premarket, after Japan&#39;s SoftBank agreed to buy the company for $32.2 billion. 
 
A host of US chip stock such as Micron, Nvidia and Broadcom were up between 1.0 and 1.5 per cent. 
 
Earnings of S&amp;P 500 companies are now estimated to have declined 4.7 per cent in the second quarter, less than the 5 per cent drop estimated earlier, according to Thomson Reuters data. 
 
That adds to hopes that earnings contraction bottomed out in the previous quarter, a view that could be reinforced when IBM, Yahoo and Netflix report results after markets close. 
 
Gold prices have fallen, while the yen was lower, indicating investors&#39; favour for more riskier assets has been growing after weeks of uncertainty. Low Treasury yields in recent weeks have also helped steer investors to equities. 
 
(Reuters)&nbsp; 
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Equity futures, which dipped after the close on Friday, shrugged off the impact of an attempted coup in Turkey

Wall Street was set to open higher today, setting the stage for the Dow and S&P 500 to hit fresh highs, as US corporate reports continue to top expectations. Equity futures, which dipped after the close on Friday, shrugged off the impact of an attempted coup in Turkey. With the S&P and Dow hitting record intraday highs almost everyday last week, investors will assess the quality of second-quarter earnings to justify stock valuations. "The markets are going to be driven by earnings reports while geopolitical problems take a backseat for now," said Peter Cardillo, chief market economist at First Standard Financial in New York. Bank of America profits show corporations making money Bank of America, the number 2 US bank by assets, and fellow S&P component Hasbro posted better than expected profit for the second quarter, mirroring the results of the few companies, including big banks, that reported last week. "The handful of results that we have got have been okay and earnings have mostly beaten expectations. It shows that corporations are still making money, and that's what counts," Cardillo said. Dow e-minis were up 32 points, or 0.17 per cent at 8:27 a.m. ET (1227 GMT), with 28,500 contracts changing hands. S&P 500 e-minis were up 5.75 points, or 0.27 per cent, with 186,056 contracts traded. Nasdaq 100 e-minis were up 10.5 points, or 0.23 per cent, on volume of 25,766 contracts. Bank of America shares rose nearly 1 per cent to $13.79 premarket. Hasbro was off 0.6 pe rcent. Investors favouring riskier assets? British chip designer ARM's US-listed shares surged 43.5 per cent to $67.64 premarket, after Japan's SoftBank agreed to buy the company for $32.2 billion. A host of US chip stock such as Micron, Nvidia and Broadcom were up between 1.0 and 1.5 per cent. Earnings of S&P 500 companies are now estimated to have declined 4.7 per cent in the second quarter, less than the 5 per cent drop estimated earlier, according to Thomson Reuters data. That adds to hopes that earnings contraction bottomed out in the previous quarter, a view that could be reinforced when IBM, Yahoo and Netflix report results after markets close. Gold prices have fallen, while the yen was lower, indicating investors' favour for more riskier assets has been growing after weeks of uncertainty. Low Treasury yields in recent weeks have also helped steer investors to equities. (Reuters)

Wall Street gears up for upbeat earnings

The Dow industrials ended at a record high on Friday and major indexes closed a third consecutive week of gains as upbeat economic data and the start of earnings season gave investors confidence. 
 
But equity futures fell after the closing bell following reports of a coup in Turkey. The military said it had seized power, but the Turkish Prime Minister later asserted the attempted coup was put down. 
 
&quot;US (Treasury) yields have fallen, the Turkish lira plummeted, gold is up, you could call it a textbook response to this kind of situation,&quot; said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. 
 
&quot;How it plays out depends on what the effects are by the time markets open on Monday. It is unclear right now who is in control,&quot; he said.&nbsp; 
 
A US exchange-traded fund that follows the Turkish stock market dropped sharply near the end of the session and was down 6 per cent after the bell. 
 
S&amp;P 500 e-mini futures hit a session low down 0.65 per cent after the reports, but pared the loss and were down 0.5 per cent. 
 
Jacobsen added: &quot;I don`t think this spills over to other countries. This isn&rsquo;t like the Arab Spring of 2011 where there was a cascade of anti-government protests in favour of democratic reforms. The issues Turkey is wrestling with seem unique to Turkey.&quot; 
 
&#39;US retail sales rose more than expected in June&#39;&nbsp; 
 
During the normal-hours session, consumer stocks led declines on the S&amp;P 500 while the financial sector posted a less than 0.2 per cent drop, even as Wells Fargo, whose profits fell in the second quarter, fell 2.5 per cent to $47.71 to rank as the largest weight on the S&amp;P. 
 
But expectations for S&amp;P earnings ticked up to a 4.7 per cent decline from a view of a 5-per cent drop earlier in the week, cementing hopes that an earnings contraction bottomed in the first quarter. 
 
Adding to investor confidence, US retail sales rose more than expected in June, bolstering views that economic growth picked up in the second quarter. 
 
&quot;When you go into earnings season with negative bias in the market it bodes well for stocks. Any positive surprises will force shorts to cover and gives an upbeat tone,&quot; said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. 
 
Three major indexes close their third week of gains&nbsp; 
 
The Dow Jones industrial average, DJI, rose 10.14 points, or 0.05 per cent, to 18,516.55, the S&amp;P 500 lost 2.01 points, or 0.09 per cent, to 2,161.74 and the Nasdaq Composite dropped 4.47 points, or 0.09 per cent, to 5,029.59. 
 
The Dow closed at a record high and joined the S&amp;P 500 in posting fresh intraday historic highs. The three major indexes closed their third week of gains, a period in which the S&amp;P advanced more than 6 percent. 
 
Market reaction on Friday to a Thursday attack in France that killed more than 80 people was limited to declines in travel and leisure company shares. 
 
Herbalife jumped 9.9 percent to $65.25 after the weight-loss products maker agreed to pay $200 million and change the way it does business to avoid being labelled a pyramid scheme by regulators. 
 
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favoured advancers. 
 
The S&amp;P 500 posted 26 new 52-week highs and no new lows; the Nasdaq Composite recorded 77 new highs and 18 new lows. 
About 6.1 billion shares changed hands in U.S. exchanges, below the 7.8 billion daily average over the past 20 sessions.&nbsp; 
 
(Reuters)&nbsp; 
 
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'US (Treasury) yields have fallen, the Turkish lira plummeted, gold is up, you could call it a textbook response to this kind of situation'

The Dow industrials ended at a record high on Friday and major indexes closed a third consecutive week of gains as upbeat economic data and the start of earnings season gave investors confidence. But equity futures fell after the closing bell following reports of a coup in Turkey. The military said it had seized power, but the Turkish Prime Minister later asserted the attempted coup was put down. "US (Treasury) yields have fallen, the Turkish lira plummeted, gold is up, you could call it a textbook response to this kind of situation," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. "How it plays out depends on what the effects are by the time markets open on Monday. It is unclear right now who is in control," he said. A US exchange-traded fund that follows the Turkish stock market dropped sharply near the end of the session and was down 6 per cent after the bell. S&P 500 e-mini futures hit a session low down 0.65 per cent after the reports, but pared the loss and were down 0.5 per cent. Jacobsen added: "I don`t think this spills over to other countries. This isn’t like the Arab Spring of 2011 where there was a cascade of anti-government protests in favour of democratic reforms. The issues Turkey is wrestling with seem unique to Turkey." 'US retail sales rose more than expected in June' During the normal-hours session, consumer stocks led declines on the S&P 500 while the financial sector posted a less than 0.2 per cent drop, even as Wells Fargo, whose profits fell in the second quarter, fell 2.5 per cent to $47.71 to rank as the largest weight on the S&P. But expectations for S&P earnings ticked up to a 4.7 per cent decline from a view of a 5-per cent drop earlier in the week, cementing hopes that an earnings contraction bottomed in the first quarter. Adding to investor confidence, US retail sales rose more than expected in June, bolstering views that economic growth picked up in the second quarter. "When you go into earnings season with negative bias in the market it bodes well for stocks. Any positive surprises will force shorts to cover and gives an upbeat tone," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. Three major indexes close their third week of gains The Dow Jones industrial average, DJI, rose 10.14 points, or 0.05 per cent, to 18,516.55, the S&P 500 lost 2.01 points, or 0.09 per cent, to 2,161.74 and the Nasdaq Composite dropped 4.47 points, or 0.09 per cent, to 5,029.59. The Dow closed at a record high and joined the S&P 500 in posting fresh intraday historic highs. The three major indexes closed their third week of gains, a period in which the S&P advanced more than 6 percent. Market reaction on Friday to a Thursday attack in France that killed more than 80 people was limited to declines in travel and leisure company shares. Herbalife jumped 9.9 percent to $65.25 after the weight-loss products maker agreed to pay $200 million and change the way it does business to avoid being labelled a pyramid scheme by regulators. Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favoured advancers. The S&P 500 posted 26 new 52-week highs and no new lows; the Nasdaq Composite recorded 77 new highs and 18 new lows. About 6.1 billion shares changed hands in U.S. exchanges, below the 7.8 billion daily average over the past 20 sessions. (Reuters)

Dow ends at record high but futures fall flat after attempted coup in Turkey

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