Economy

Wall Street Points to Initial Rebound on Earnings Optimism

Published

6 years ago

22/07/2019

By Investors Hub

The major U.S. index futures are currently pointing to a higher opening on Monday, with stocks likely to move back to the upside following the pullback seen last week.

Optimism about earnings news may generate early buying interest, as a slew of big-name companies are due to report their quarterly results this week.

Amazon (AMZN), Coca-Cola (KO), AT&T (T), Boeing (BA), Caterpillar (CAT), Facebook (FB), Alphabet (GOOGL), Intel (INTC), McDonald’s (MCD), and Twitter (TWTR) are just a few of the companies due to report their quarterly results.

According to FactSet data, 79 percent of S&P 500 companies have reported better than expected quarterly earnings so far this earnings season.

The looming deluge of earnings reports may keep some traders on the sidelines today, with just a few companies reporting their results before the start of trading.

Logitech (LOGI), TD Ameritrade (AMTD) and Whirlpool (WHR) are among the companies due to report their results after the close.

Traders may also be reluctant to make significant moves amid a quiet day on the U.S. economic front, looking ahead to on new and existing home sales, durable goods orders, and second quarter GDP in the coming days.

After ending Thursday?s trading modestly higher, stocks moved mostly lower over the course of the trading day on Friday. The major averages failed to sustain an initial upward move and slid firmly into negative territory as the day progressed.

The major averages showed a notable move to the downside in late-day trading, hitting new lows for the session. The Dow fell 68.77 points or 0.3 percent to 27,154.20, the Nasdaq slid 60.75 points or 0.7 percent to 8,146.49 and the S&P 500 dropped 18.50 points or 0.6 percent to 2,976.61.

With the downturn on the day, the major averages also moved lower for the week. The Dow slumped by 0.7 percent, while the Nasdaq and the S&P 500 both tumbled by 1.2 percent.

The initial strength in Wall Street partly reflected a positive reaction to upbeat earnings news from Microsoft (MSFT), as the software giant reported fiscal fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

Buying interest waned shortly after the start of trading, however, as traders looked ahead to the slew of earnings news due to be released next week.

Traders were also digesting the New York Federal Reserve’s efforts to walk back comments President John Williams made Thursday that seemed to endorse a near-term interest rate cut.

Williams said it “pays to act quickly to lower rates at the first sign of economic distress,” arguing it is “better to take preventative measures than to wait for disaster to unfold.”

However, a New York Fed spokesman later claimed Williams’ remarks were based on years of research and not specifically about potential policy actions at the upcoming Fed meeting.

On the U.S. economic front, the University of Michigan released a report on Friday showing a slight improvement in U.S. consumer sentiment in the month of July.

The preliminary report showed the consumer sentiment index inched up to 98.4 in July from the final June reading of 98.2. Economists had expected the index to edge up to 98.5.

“Consumer sentiment remained largely unchanged in early July from June, remaining at quite favorable levels since the start of 2017,” said Surveys of Consumers chief economist Richard Curtin.

Biotechnology stocks showed a significant move to the downside over the course of the session, dragging the NYSE Arca Biotechnology Index down by 1.9 percent.

Considerable weakness also emerged among gold stocks, which pulled back following the rally seen in the previous session.

The NYSE Arca Gold Bugs Index tumbled by 1.6 percent after spiking by 3.2 percent to a nearly two-year closing high on Thursday.

The pullback by gold stocks came as the price of gold for August delivery dipped after surging to a six-year high of $1,454.40 an ounce earlier in the session.

Interest rate-sensitive commercial real estate and utilities stocks also moved to the downside on the day, while notable strength was visible among steel stocks.

Economy

APM Terminals Apapa Records 31.5% Surge in Exports in April

Published

16 hours ago

13/05/2025

Adedapo Adesanya

By Adedapo Adesanya

APM Terminals Apapa has reported a 31.5 per cent increase in export volumes for April 2025, reaching its highest monthly figure since operations began in 2006.

The terminal handled 8,687 twenty-foot equivalent units (TEUs) of export cargo, up from 6,606 TEUs in April 2024.

According to the terminal manager, Mr Steen Knudsen, this underscores a major milestone in Nigeria’s growing export momentum and reflects years of sustained growth and strategic investment in export infrastructure.

“It’s advantageous for Nigerian shippers when ships depart our ports fully loaded with exports. Preventing ships from leaving empty positively influences the overall cost of shipments into Nigeria,” he said.

Mr Knudsen attributed the growth to targeted operational improvements and alignment with national economic priorities.

“Our aim aligns with the Federal Government’s vision of transforming Nigeria into an export-driven economy. To support this, we launched a new rail service in February to expedite the movement of goods from the hinterland to Apapa port,” he revealed.

“We’ve expanded our yard capacity for exports and introduced dedicated truck lanes to streamline the process, reducing the time exports spend in the terminal and ensuring timely ship departures,” he added.

Mr Knudsen praised top agencies including Nigerian Ports Authority (NPA) and Nigerian Railway Corporation (NRC) for their support in enabling the terminal to focus on delivering top-tier services to its customers.

Since acquiring the Apapa concession, the company has made significant capital investments to boost capacity, efficiency, and overall terminal productivity.

In the last four years, APM Terminals Apapa has recorded a steady rise in export volumes. In 2022, the terminal handled 53,807 TEUs of exports. This number rose to 70,432 TEUs in 2023 and 77,631 TEUs in 2024.

As Nigeria’s largest container terminal and a subsidiary of the A.P. Moller Maersk Group, APM Terminals Apapa continues to play a central role in the modernization and expansion of the country’s maritime logistics network.

Economy

Tinubu’s Aide on Entrepreneurship Development Lauds Legend Internet NGX Listing

Published

16 hours ago

13/05/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

President Bola Tinubu’s Senior Special Assistant on Entrepreneurship Development in Communications, Innovation and Digital Economy, Ms. Chalya Shagaya, has commended Legend Internet Plc for listing its shares on the Nigerian Exchange (NGX) Limited.

Last month, the internet service provider (ISP) listed about two billion stocks valued at N12.4 billion on the local bourse, becoming the first indefinite telecom operator in Nigeria to do so, reflects strong investor confidence in nation’s digital economy.

Speaking during a visit to the headquarters of the organisation, Ms Shagaya praised the team led by Mr Bruce Ayonote for the achievement.

“The listing of Legend Internet Plc is not just a corporate achievement, it is a national win. It sends a powerful message to indigenous digital and tech companies that the capital markets are within reach,” Ms Shagaya stated.

The President’s aide further highlighted the alignment of this success with the Renewed Hope Agenda of her boss, emphasising the administration’s dedication to building a business-friendly environment driven by digital transformation and inclusive economic growth.

She also applauded the tech firm for its inclusivity efforts, noting that the majority of its executive and senior members of staff are women, describing this as a progressive example of gender representation in leadership, which aligns with national goals for women’s inclusion in economic development.

Ms Shagaya expressed her readiness to support Legend Internet and its affiliate company, Suburban, in future initiatives, including expansion of digital infrastructure, innovation policy development, and capacity building programs for entrepreneurs.

She also stressed the ripple effect such achievements could have on the broader ecosystem, from enhancing local content development and broadband access to creating jobs and fostering innovation, encouraging the organisation to further engage in mentorship, tech training, and entrepreneurship support initiatives.

“Legend Internet’s story is one of vision, resilience, leadership, and inclusivity. It is the kind of story this administration is proud to champion and we look forward to partnering with more companies that are pushing the boundaries of what is possible,” she stated.

Economy

NASD Bourse Soars 0.64% to N1.947trn

Published

20 hours ago

13/05/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.64 per cent increase on Monday, May 12, with its total value rising by N12.46 billion to N1.947 trillion from the N1.935 trillion quoted at the preceding session, as the NASD Unlisted Security Index (NSI) went up by 21.28 points to 3,326.06 points from 3,3204.74 points.

The expansion recorded during the first trading session of the week was influenced by price appreciation in the shares of three companies admitted to the platform.

Central Securities Clearing System (CSCS) went up by N2.25 to trade at N24.85 per unit versus last Friday’s N22.60 per unit, FrieslandCampina Wamco Nigeria Plc improved its value by 40 Kobo to settle at N40.43 per share from the previous closing value of N40.03, per share, and Geo-Fluids Plc added 10 Kobo to end at N1.91 per unit, on contrast to the preceding session’s N1.81 per unit.

During the trading day, the volume of shares bought and sold by the market participants decreased by 99.7 per cent to 673,233 units from the 231.6 million units traded in the previous trading day, the value of securities transacted by investors moderated by 98.9 per cent to N6.3 million from N606.4 million, and the number of deals retreated by 38.6 per cent to 35 deals from 57 deals.

When trading activities finished for the day, the most active stock by volume on a year-to-date basis remained Impresit Bakolori Plc with a turnover of 534.0 million units worth N521.1 million, followed by Geo-Fluids Plc with 266.4 million units valued at N470.5 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.

The most traded stock by value on a year-to-date basis also remained Okitipupa Plc with the sale of 153.6 million units for N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 20.0 million units valued at N768.5 million, and Impresit Bakolori Plc with a turnover of 534.0 million units worth N521.1 million.