U.S. Stocks Rebound Slightly After Friday’s Rout
New York (AFP) – U.S. stocks were mostly higher in early trade Monday following Friday’s two percent rout, with traders shrugging off sharp falls in Asian markets and moderate selling in Europe.
About 30 minutes into trade, the Dow Jones Industrial Average was up 30.93 points (0.19 percent) at 15,910.04.
The broad-based S&P 500 added 1.99 (0.11 percent) at 1,792.28, while the tech-rich Nasdaq Composite Index slipped 5.96 (0.14 percent) to 4,122.21.
Analysts were cautious about sentiment.
“It is evident that Friday’s selling isn’t carrying over,” Patrick O’Hare of Briefing.com said of the early sentiment. “It could get going again, especially if the early bounce peters out in a hurry, but it’s basically a touch-and-go test right now of the market’s buy-the-dip conviction.”
Caterpillar shares shot up 6.4 percent after handily beating forecasts in its fourth-quarter earnings, with net income rising 43.9 percent to $1.0 billion and earnings per share at $1.54 per share, compared with the $1.28 expected by analysts.
AT&T was up 0.2 percent after saying it would not launch an offer for British mobile phone group Vodafone following fresh rumors of a mega-bid.
Shares of cable television operator Liberty Global lost 2.0 percent after it announced a $13.7 billion stock and cash offer to buy Dutch operator Ziggo to expand its European markets.
Apple shares were up 1.2 percent ahead of its earnings report, coming after the market closes.
Google shares meanwhile slipped 0.5 percent.
Bond prices were modestly lower. The yield on the 10-year U.S. Treasury moved to 2.75 percent from 2.74 percent Friday, while the 30-year rose to 3.66 percent from 3.65 percent. Bond prices and yields move inversely.
AFP Photo/Spencer Platt