US stocks rise on corporate earnings as Treasuries climb

Bloomberg

US stocks pushed higher amid strong corporate results, while Treasuries rose after the Bank of Japan signalled it’ll maintain stimulus. The dollar declined.
The S&P 500 Index gained for the third day in a row as investors digested strong earnings, including from Netflix Inc., which helped drive tech shares higher. Of the 68 firms in benchmark that have reported so far, 82 percent have topped analyst earnings estimates. The potential impact of the tariff’s announced by the Trump administration did little to shake the risk-on mood.
The 10-year Treasury yield fell the most in nearly a month after BOJ Governor Haruhiko Kuroda said the central bank isn’t ready to consider curbing its monetary stimulus. The dollar erased earlier gains, headed for the lowest in three years.
The stream of company results continues. Netflix Inc. soared in late trading after posting its biggest quarter ever. LG Electronics Inc. was among those underperforming thanks to the Trump administration’s protectionist moves.
Elsewhere, the MSCI Emerging Markets Index advanced an eighth day, helped by stronger oil prices. West Texas crude futures hit $64 a barrel, buoyed by forecasts for a record run of declines in US crude stockpiles.
Earnings season is in full swing: Novartis, General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come later in the week. Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum. The European Central Bank announces its rate decision on January 25. The UK House of Lords is considering Prime Minister Theresa May’s Brexit bill this week.
The S&P 500 Index rose 0.3 percent as of 11:05 am New York time. The Stoxx Europe 600 Index rose 0.2 percent. The MSCI All-Country World Index climbed 0.3 percent to the highest on record. The UK’s FTSE 100 Index increased 0.3 percent to the highest in a week. Germany’s DAX Index jumped 0.8 percent to the highest on record. The MSCI Emerging Market Index increased 0.8 percent and the largest climb in more than a week.
The Bloomberg Dollar Spot Index fell 0.2 percent. The euro rose 0.2 percent to $1.2292. The British pound rose 0.2 percent to $1.4014.
The Japanese yen gained 0.5 percent to 110.34 per dollar, the strongest in almost 19 weeks on the biggest rise in more than a week.
The yield on 10-year Treasuries decreased three basis points to 2.62 percent, the largest decline in almost four weeks. Germany’s 10-year yield fell one basis point to 0.56 percent, the lowest in almost two weeks on the biggest fall in a week. Britain’s 10-year yield decreased two basis points to 1.337 percent, the first retreat in a week and the largest tumble in almost three weeks.
Gold rose 0.2 percent to $1,336.80 an ounce, the highest in a week. West Texas Intermediate crude increased 1.8 percent to $64.61 a barrel.