U.S. Stocks Mostly Higher, Buoyed by Gains in Telecom Companies
December 12 2017 - 10:52AM
Dow Jones News
By David Hodari
-- Dow industrials, S&P 500 rise
-- Energy, tech upbeat in Europe
-- Investors look to central banks
Gains among telecommunications companies pushed the Dow Jones
Industrial Average and S&P 500 higher Tuesday.
The Dow industrials rose 94 points, or 0.4%, to 24477 soon after
the opening bell, while the S&P 500 gained 0.1%. The Nasdaq
Composite fell 0.1%.
Shares of Comcast advanced 2.3%, putting it among the S&P
500's biggest gainers, after the cable and programming firm said it
was no longer pursuing an acquisition of media and entertainment
assets from 21st Century Fox.
Verizon shares rose 1.3% after a deal to show NFL football games
on its mobile network, as well as its Yahoo, Yahoo Sports and go90
mobile platforms.
Boeing was the Dow industrial's biggest point contributor,
rising nearly 3%. The aerospace giant said it would boost its
quarterly dividend by 20% and raise its buyback authorization to
$18 billion.
The Stoxx Europe 600 rose 0.4%, while most indexes in Asia ended
the session lower.
Meanwhile, investors were keeping a close watch on how
Republicans proceeded with their tax overhaul, as well as policy
updates from global central banks. The U.S., European, and U.K.
central banks, among others, are scheduled to meet this week, with
European Central Bank President Mario Draghi due to give a speech
Tuesday.
"The main focus from Draghi is that we'll get new economic
forecasts and we'll get 2020 [forecasts] for the first time. He may
also give more detail on how [the ECB] plans to scale back
purchases to EUR30 billion [$35 billion] from EUR60 billion. Will
they halve all purchases or take a more nuanced approach?" said
James Knightley, chief international economist at ING.
Also scheduled for Tuesday was the start of the Federal Open
Market Committee's two-day meeting, with the body's interest-rate
decision due Wednesday. Data from CME Group showed investors were
betting on a 100% probability that the Fed will announce a rate
increase.
Fed observers shouldn't expect many surprises in the months
ahead either, said Mark Richards, a global multiasset strategist at
J.P. Morgan Asset & Wealth Management. December's meeting will
be the last for multiple FOMC members, and given an impending
change in chairperson in January, "it doesn't feel like a new Fed
chair will seek to alter the policy path materially, so we expect
[the current guidance of three increases] to be maintained for a
good few months."
Stocks in Asia, meanwhile, struggled. Hong Kong's Hang Seng
Index fell 0.6%, dragged lower by heavyweight Tencent Holdings. The
tech company fell 3% after disclosing that one of its units is in
talks to acquire a minority stake in supermarket operator
Yonghui.
South Korea's Kospi slipped 0.4%, despite a 0.6% gain for index
heavyweight Samsung Electronics. Japan's Nikkei closed 0.3% lower
partly thanks to a slight drop in the yen against the dollar.
Regional selling also dragged on Chinese stocks, with the
Shanghai Composite down 1.3%.
--Michael Wursthorn contributed to this article.
Write to David Hodari at David.Hodari@dowjones.com
(END) Dow Jones Newswires
December 12, 2017 10:37 ET (15:37 GMT)
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