Stocks Little Changed to Start the Week
October 23 2017 - 11:04AM
Dow Jones News
By Riva Gold and Akane Otani
-- U.S. stocks trade in narrow range
-- Nikkei on record streak after Japan elections
-- European stocks mostly higher
U.S. stock indexes wobbled near the flatline Monday after
finishing at a trifecta of records last week.
The Dow Jones Industrial Average rose 27 points, or 0.1%, to
23357. The S&P 500 added less than 0.1% and the Nasdaq
Composite fell 0.2%.
A flurry of earnings reports released before the opening bell
drove swings in individual stocks while leaving major indexes
little changed.
With nearly 200 S&P 500 companies expected to report
quarterly results this week, according to FactSet, and little on
the economic calendar for much of the week, some analysts expect
corporate news to drive much of the action in the coming days.
Hasbro shares shed 8.7% after the toy maker posted sales and
profit that beat analysts' expectations, but gave a downbeat
projection for fourth-quarter results.
Shares of Kimberly-Clark added 1.1% after the personal-care
products company reported better-than-expected earnings before the
opening bell.
Elsewhere, the Stoxx Europe 600 rose 0.3% as gains in utilities
and technology companies offset declines in the banking sector.
Investors this week will be watching closely for the European
Central Bank's plans to announce the fate of its giant bond-buying
program at its meeting on Thursday, as well as any hints at the
selection of the next chair of the Federal Reserve.
This "may be a potential turning point in the timeline for
withdrawing accommodation," said Holly MacDonald, chief investment
strategist at Bessemer Trust, noting the European Central Bank is
facing constraints on continuing its program of quantitative
easing.
Still, with the decision well-telegraphed to markets and no
interest rate rise on the horizon for some time, the ECB's October
meeting is unlikely to ruffle bond markets much, she said.
U.S. government bonds strengthened Monday, with the yield on the
benchmark 10-year U.S. Treasury note falling to 2.370%, according
to Tradeweb, from 2.381% on Friday. Yields fall as bond prices
rise.
The dollar inched higher, with the WSJ Dollar Index -- a measure
of the dollar against a basket of 16 currencies -- recently up
0.2%.
In Asia, Japan's Nikkei Stock Average rose 1.1%, rounding out
its longest-ever winning streak with a 15th session of consecutive
gains, after Japanese Prime Minister Shinzo Abe won a national
election by a landslide.
While polls had largely been in Mr. Abe's favor, his election
win raised investor hopes of continued market-friendly monetary
policies and economic reforms.
"What we've seen this year is really Abenomics has succeeded in
many ways," said Vincent Juvyns, global market strategist at J.P.
Morgan Asset Management, pointing to improvements in Japanese
export figures, confidence surveys and shareholder-friendly
corporate governance. Japan's economy has grown continuously for
the past year-and-a-half, the longest stretch for more than a
decade.
Hong Kong's Hang Seng Index reversed its opening gains to trade
down 0.6% as investors turned cautious on Chinese banks ahead of
their earnings releases this week and declines in property stocks
weighed on the index.
Write to Riva Gold at riva.gold@wsj.com and Akane Otani at
akane.otani@wsj.com
(END) Dow Jones Newswires
October 23, 2017 10:49 ET (14:49 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.