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US stocks rise on upbeat results | US stocks rise on upbeat results |
(about 3 hours later) | |
US stocks have risen, recovering some ground from Tuesday's falls thanks to strong results from Disney and upbeat US productivity data. | |
By midday, the Dow Jones index was up 74 points, or 0.6%, to 12,339.2, while the Nasdaq added 0.7%. | |
Data showing contraction in the service sector saw the Dow fall 3% on Tuesday. | Data showing contraction in the service sector saw the Dow fall 3% on Tuesday. |
In Europe, traders were cautious ahead of a UK and eurozone interest rate decision on Thursday. Earlier, the UK's FTSE 100 rose 7.4 points at 5,875.4. | |
Analysts said Disney's latest figures and a stronger-than-expected rise in US worker productivity overshadowed continuing recession fears. | |
'Natural inclination' | 'Natural inclination' |
"It's probably the natural inclination of markets to try to bounce after a bad day," said Peter Boockvar, equity strategist at Miller Tabak in New York. | "It's probably the natural inclination of markets to try to bounce after a bad day," said Peter Boockvar, equity strategist at Miller Tabak in New York. |
We're kind of treading water right now. The market's very jittery and nervous Jim Herrick, director of equity trading at Baird & Co | We're kind of treading water right now. The market's very jittery and nervous Jim Herrick, director of equity trading at Baird & Co |
"There's no question that Disney helped and productivity numbers coming in better than expected didn't hurt either." | "There's no question that Disney helped and productivity numbers coming in better than expected didn't hurt either." |
The latest results from media group Time Warner also pleased investors. | The latest results from media group Time Warner also pleased investors. |
While it reported a fall in profits for the last three months of 2007, it said it expected profit growth in 2008 to possibly exceed Wall Street estimates. | While it reported a fall in profits for the last three months of 2007, it said it expected profit growth in 2008 to possibly exceed Wall Street estimates. |
Yet despite the share rises, analysts cautioned that stock market turbulence was likely to return. | Yet despite the share rises, analysts cautioned that stock market turbulence was likely to return. |
"We're kind of treading water right now," said Jim Herrick, director of equity trading at Baird & Co. | |
"The market's very jittery and nervous." | "The market's very jittery and nervous." |
After a volatile session, Frankfurt's key Dax climbed 1.2% to end at 6,847.5, while the Paris-based Cac 40 had added 0.8% to finish at 4,816. | |
Asian shares had tumbled earlier, taking their queue from Wall Street's troubles on Tuesday. | |
Japan's main Nikkei 225 index had earlier finished 4.7% lower, while Hong Kong's Hang Seng lost 5.4%. | Japan's main Nikkei 225 index had earlier finished 4.7% lower, while Hong Kong's Hang Seng lost 5.4%. |