Forexpros – U.S. stocks were higher on Wednesday, as Alcoa kicked off earnings season on an upbeat note while investors eyed the release of the Treasury Department’s budget figures later in the day.
During early U.S. trade, the Dow Jones Industrial Average rose 0.66%, the S&P 500 index climbed 0.86%, while the Nasdaq Composite index advanced 0.71%.
Sentiment weakened earlier after the yield on Spain’s 10-year government bond briefly rose to 6.01%, amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Speaking before the Spanish Parliament earlier, Prime Minister Mariano Rajoy said that Spain will not require a bailout and that the country’s deficit target remains “unconditional”.
In the U.S., government data showed that import prices rose more-than-expected in March, climbing 1.3% after a 0.1% fall the previous month. Analysts had expected import prices to rise 0.8% in March.
Aluminum giant Alcoa skyrocketed 7.29% after posting a surprise first-quarter profit, as global markets improved, especially in the aerospace and automobile sectors.
Oil giant Chevron was also up 0.17% after saying in its interim report that it expects to outperform on earnings in the first quarter. Other energy stocks followed, as shares in Exxon Mobil jumped 1.08% and Alpha Natural Resources soared 3.71%
Financials were broadly higher, led by Bank of America, up 2.93% after Guggenheim boosted its rating on the U.S. lender to “buy” from “neutral.” JP Morgan was close behind with shares jumping 2.19%, while Citigroup and Goldman Sachs surged 2.16% and 1.61% respectively.
Morgan Stanley also climbed 2.60% after Evercore Partners raised its price target on the firm to USD20.
In the tech sector, Apple shares rose 0.76% after Sterne Agee raised its price target on the iPad maker to USD750 from USD740.
Elsewhere, shares in Nike added 1.14% after Reebok International said it agreed to settle a lawsuit by the rival sportswear company and will stop selling New York Jets football apparel with the name of the team’s popular new quarterback, Tim Tebow.
On the downside, Nokia saw shares plunge 14.91% after the Finnish cellphone maker lowered its quarterly outlook for its devices and services divisions, citing “competitive industry dynamics” that affected sales in emerging markets.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.03%, France’s CAC 40 jumped 1.12%, Germany’s DAX climbed 1.14%, while Britain’s FTSE 100 rose 0.56%.
During the Asian trading session, Hong Kong’s Hang Seng Index tumbled 1.25%, while Japan’s Nikkei 225 Index slumped 0.9%.
Later in the day, the U.S. was to release official data on crude oil stockpiles and a report on the federal budget balance. The Federal Reserve was also to publish its Beige Book.
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