Market Update: Strong Earnings Supported Dow Jones On January 16, 2019

  • Jan 17, 2019 AEDT
  • Team Kalkine
Market Update: Strong Earnings Supported Dow Jones On January 16, 2019

As expected by the market players, it seems like the broader US markets are reacting to the news related to the earnings reports. This does not mean that the market players would be completely ignoring the macro-economic factors. However, it can be said that largely the focus of the market participants would be on the earnings reports. Yesterday, Goldman Sachs and Bank of America had reported the results for the quarter. Both the companies reported strong results which have supported the broader markets yesterday. On January 16, 2019, Goldman Sachs (NYSE: GS) ended the session at US$197.08 per share which implies the rise of US$17.13 per share or 9.52% on the intraday basis. On the same day, Dow Jones Industrial Average ended the session at 24,207.16 which implies the rise of 141.57 points or 0.59%.

Moving forward, the US markets would continue to be sensitive to the earnings reports of the companies. However, even though the earnings season is going on, the market players need to focus on other factors like macro-economic variables and on the US and China trade relationships. The settlement of the trade dispute between the US and China would be beneficial for the broader economy and the markets.

Oil Prices Volatility Might Weigh on Investors’ Sentiments

Earlier, the oil prices had been witnessing the impacts of several factors like worries about the increased supply as well as concerns relating to the global economic slowdown. The fears related to slowdown is negative for the oil prices because it might impact the demand of oil. Lower demand would pull down the oil prices. Moreover, the oil prices are expected to remain sensitive to the fluctuations in the global financial markets and any downward momentum in the equity markets might also unfavourably impact the oil prices. The financial markets are sensitive to the news related to the interest rates changes. There are expectations that the Federal Reserve would be patient in terms of the rate hikes because of the worries about the global economic slowdown.

Australian Markets Closed Higher: A Brief Overview

The Australian markets ended the session on the positive note after Dow Jones Industrial Average closed the session higher. It can be said that the Australian markets would also be impacted by the unsettling trade relations between the US and China. Therefore, the settlement of the trade battle on a permanent basis would be positive for the broader Australian economy as well as for the Australian markets. On January 17, 2019, S&P/ASX200 closed the session at 5850.1 which implies the marginal rise of 14.9 points or 0.3%.

The stocks like Whitehaven Coal Limited (ASX: WHC) and The A2 Milk Company Limited (ASX: A2M) have closed the session higher by rising 3.744% and 3.678%, respectively. However, Syrah Resources Limited (ASX: SYR) had ended the session in red by falling 5.665% on January 17, 2019. South32 Limited (ASX: S32) had made an announcement related to results for first half of the fiscal year 2019. Read the full news here.


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