Forexpros – U.S. shares opened Friday higher on better- than – expected earnings despite weak GDP performance.
At the open of U.S. trade, the Dow Jones Industrial Average moved higher by 0.06%, the S&P 500 added 0..25%, while the Nasdaq Composite advanced 0.02%.
75% of the 271 companies reporting in the S&P 500 since April 10 have topped analyst’s estimates and eight out of ten sectors delivered better-than-forecast earnings fuelling the risk on trade.
In other bullish news, U.S. University of Michigan consumer sentiment advanced unexpectedly last month.
In a report, the UoM stated that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.
However, the Gross Domestic Product numbers indicated that the U.S. economy expanded at a 2.2% rate in the first quarter, missing the 2.5% increase projected by economists, casting doubts on the economic growth.
Adding to global growth concerns, S&P slashed Spain’s long term debt rating to BBB+ reporting that the outlook is negative in the face of the recession undermining efforts to cut the budget deficit.
Additionally, the jobless rate spiked to 24.4%, hitting an eighteen year high, the National Statistics Institute reported.
Meanwhile, in Japan, the central bank expanded its plan for government-bond purchases by 10 trillion yen to support the economy.
On the pro global growth side, data indicated Switzerland’s KOF economic barometer rose more-than-expected to a seasonally adjusted 0.40 last month from 0.09 in the preceding month whose figure was revised up from 0.08.
Analysts had expected the KOF economic barometer to rise to 0.26 last month.
Expedia exploded higher by 25% on strong hotel booking business.
Newmont Mining advanced 2.1% after first quarter profits beat analyst’s estimates.
Starbucks gave back 6.4% on declining sales numbers.
In the middle of European trade, the EURO STOXX 50 is ahead by 0.81%, France’s CAC 40 added 1.16%, while Germany’s DAX climbed 0.83%. Meanwhile, in the U.K. the FTSE 100 gained 0.48%.
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