Earnings help stocks advance in early trade Thursday
Stocks in Europe rose Thursday, following US shares higher as robust earnings helped overcome worries about persistent inflation.
Europe’s Stoxx 600 index climbed for a second day to the highest in more than a month. That tracked moves in Asia, where a gauge of the region’s stocks advanced 0.9% to the best level since early January. US equity futures pointed to further gains after the S&P 500 rose 1% Wednesday to retake the 5,000 mark. That retraced the bulk of losses spurred by data showing US core inflation for January rose more than expected, dashing hopes that a first Federal Reserve interest-rate cut is imminent.
It’s another busy day of earnings in Europe. Stellantis NV rose after the Jeep maker announced a share buyback and a higher dividend. Airbus SE slipped as its guidance disappointed. Pernod Ricard SA rallied 6.3% as it forecast improved second-half sales.
Gains for US stocks on Wednesday were supported by large tech companies. The NYSE Fang+ index that includes Nvidia Corp, Microsoft Corp. and Apple Inc. rose 2% — twice as much as the broader market. Favorable earnings reports also helped. Uber Technologies Inc. surged 15% after announcing $7 billion in share buybacks, while Robinhood Markets Inc. rose 14% as revenue topped estimates.
After this week’s hot US inflation report forced traders to curb their optimism over early Fed easing, there are more readings on the world’s largest economy to digest Thursday. Investors will study data due later including initial jobless claims, industrial production and retail sales for clues on the policy outlook.
Traders have further scaled back Fed cut bets, and have largely given up hope of a cut in March. The chance of one the following meeting in early May stands at
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