- Consumer confidence beats expectations in January
- Surprise plunge in durable goods in December
- Ford, DuPont impress; Apple plunges
Dow Jones: 0.60%
S&P 500: 0.64%
US markets advanced on Tuesday with decent results from Ford and DuPont helping to offset some mixed economic data as stocks rebounded after the recent sell-off.
However, upside on the Nasdaq was limited by a sharp fall from tech giant Apple as the company disappointed with its fiscal first-quarter report.
Nevertheless, US stocks were recovering after a three-day slide caused by volatility in the emerging markets which saw currencies of developing nations plummet. Things stabilised slightly today after Turkey's central bank said it would hold an emergency monetary policy meeting to take measures to halt the sharp slide in the lira.
Investors were also beginning to look ahead to the Federal Open Market Committee meeting which concludes tomorrow. The Fed, which began scaling back its monthly asset purchases in December from $85bn to $75bn, will make another $10bn cut this month, according to the consensus forecast.
Economic data comes in mixed
The Conference Board's closely-watched gauge of consumer confidence rose to 80.7 in January from a revised 77.5 in December, coming in ahead of the consensus forecast of 78.
Orders for US durable goods unexpectedly dropped by 4.3% in December to reach $229.3bn, according to the latest figures released by the Department of Commerce, mainly as a result of a fall in orders from volatile sectors such as defence and aircraft. While headline orders were 4.9% higher than December 2012, markets had been looking for a 1.8% increase month-on-month.
The S&P/Case-Shiller Home Price Index was 13.7% higher in November from a year earlier, up slightly from the 13.6% growth in October and more or less in line with forecasts.
Apple plunges, Ford and DuPont rise
Apple fell by over 8% following the opening bell after fewer-than-expected iPhone sales in its fiscal first quarter and disappointing revenue guidance for the current quarter.
51m of the smartphones were sold in the quarter ended December 28th 2013, 7% higher than the previous year but below analysts' forecast of 55m units. The company expects to generate $42-44bn in revenue in its second quarter, far short of the $46.2bn current consensus estimate.
Ford Motor Co rallied after saying it made record pre-tax profits in North America and Asia last year with "one of the company's best years ever". Full-year profits rose 7.6% to $8.6bn in 2013 on revenues that increased 10% to $146.9bn.
Chemicals group DuPont edged higher after beating Street forecasts with fourth-quarter adjusted earnings of 59 cents per share, up from just 20 cents the year before. The company also announced a $5bn share buyback.
Comcast Corp advanced following reports the cable company is close to a deal to buy assets from Charter Communications.