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GLOBAL MARKETS-Stocks higher, dollar weaker in wake of Fed statement

Published 2019-05-01, 02:34 p/m
© Reuters.  GLOBAL MARKETS-Stocks higher, dollar weaker in wake of Fed statement
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* Apple shares after consensus-busting results

* Most of Europe, Asia shut for May Day holidays

* U.S. dollar, Treasury yields fall (Updates with close of European markets, Fed statement)

By Chuck Mikolajczak

NEW YORK, May 1 (Reuters) - Global equities advanced on Wednesday for a fourth straight day of gains after the U.S. Federal Reserve held rate steady as expected and as Apple's strong results eased concerns about earnings growth.

The central bank made no move on interest rates as policymakers took heart in continued U.S. job gains and economic growth and held out hope that weak inflation will edge higher. Donald Trump recently called for the Fed to cut interest rates and renew its quantitative easing program.

"No surprises from the Fed, this is exactly what people thought," said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco.

"With 3% GDP growth, you saw the ADP (NASDAQ:ADP) number today, we are heating up. It hasn't flowed through to inflation yet so you could argue there is no need but I would think central bankers would want to get in front of any inflation."

Apple AAPL.O shares jumped about 7% to help lift the major Wall Street indexes on the plus side as the top boost. The iPhone maker beat depressed expectations despite a record drop in phone revenue, gave an upbeat assessment of its China business, said it would buy back $75 billion in shares and hiked its dividend. The gains pushed Apple closer to $1-trillion market capitalization yet again. also received a boost from early data on the labor market, as a report by payrolls processor ADP showed U.S. private employers added 275,000 jobs in April, well above the 180,000 estimate. reports on construction spending and U.S. manufacturing came in weaker than expected, sending conflicting signals about the strength of the economy. 500 earnings are now expected to show growth of 0.5% for the quarter, according to Refinitiv data. At the start of April, earnings were expected to decline by 2%, sparking some concerns about the possible start of an earnings recession.

The Dow Jones Industrial Average .DJI rose 68.43 points, or 0.26%, to 26,661.34, the S&P 500 .SPX gained 7.34 points, or 0.25%, to 2,953.17 and the Nasdaq Composite .IXIC added 48.78 points, or 0.6%, to 8,144.17.

Trading was thin in Europe, with most markets closed for the May Day holiday and only London and Copenhagen open for trading. UK stocks closed lower, with London's FTSE 100 .FTSE down 0.44% as it ended at a 1-month low. pan-European STOXX 600 index .STOXX lost 0.07% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.31%.

The weaker data on construction and manufacturing dented the dollar and U.S. Treasury yields fell. The greenback briefly pared losses after the Fed but remained weaker while 10-year Treasury yields hit their lowest since April 1. Chairman Jerome Powell's comments after the policy announcement will be closely monitored for clues on the Fed's thinking about the state of the economy and direction of rates.

The dollar index .DXY fell 0.32%, with the euro EUR= up 0.41% to $1.1261.

Benchmark 10-year notes US10YT=RR last rose 13/32 in price to yield 2.4622%, from 2.507% late on Tuesday.

Oil prices declined after data from the U.S. Energy Information Administration showed U.S. crude production output set a new record last week. crude CLcv1 fell 0.59% to $63.53 per barrel and Brent LCOcv1 was last at $72.11, up 0.07% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Apple back in the $1 trillion race

https://tmsnrt.rs/2When53 Global assets in 2019

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

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