U.S. stocks began to bounce back Monday from last Friday’s deep sell-off, which saw the Dow drop over 600 points, as investors bet that the coronavirus outbreak wouldn’t severely impact U.S. economic growth. In the U.S., January manufacturing data released Monday showed that the sector had returned to growth, and that new orders for manufactured goods rose in December at the fastest pace in more than a year. By Monday’s close, the Dow had climbed 144 points, while the TSX was up 61, buoyed by domestic data that showed Canadian manufacturing activity expanded in January for the fifth straight month.
N.A. stocks continued their ascent on Tuesday as the Nasdaq hit a record high and the S&P 500 posted its biggest one-day gain in about six months after China’s central bank injected more than 1.7 trillion yuan (US$242 billion) in economic stimulus over two days. Crude prices also rebounded Tuesday, with Brent crude gaining over 1%–just a day after skidding into a bear market as it fell more than 20% from September levels.
Canada’s main stock index rose on Wednesday, aided by a 3.7% jump in energy stocks, as oil prices soared. Also boosting sentiment was data that showed Canada posted a narrower-than-expected trade deficit in December. By Wednesday’s close, the Dow had jumped 438 points, while the TSX surged 139.
Another positive this week has been U.S. corporate earnings, which have largely beaten analysts’ expectations. By the close of reporting season, analysts expect modest earnings growth overall—a definite plus after multiple quarters of declining earnings. The news from Europe was also upbeat this week as eurozone business activity accelerated in January.
Finally, U.S. markets headed higher Thursday after China said it would slash existing tariffs by half on $75 billion of U.S. imports.
source https://richarddri.ca/n-a-markets-climb-as-coronavirus-fears-begin-to-wane-earnings-improve/
Dri Financial Group 