The Dow Jones Industrial Average closed 150 points ahead yesterday on the back of strong quarterly earnings from companies like IBM, United Technologies and Procter & Gamble (P&G).
Dow members United Technologies and P&G both rose higher than 4.9% after reporting "better-than-expected" earnings. IBM, another Dow component, jumped 8.5% in its best session since October.
Ultimately, when you look at the data, the thing that matters most to the market is earnings. I would say the technology sector is one that could make or break the story for equities. If you look at margins for the sector versus the other sectors, it's by far the largest<br><br>If you start to actually see margins for the technology sector deteriorate, that's going to basically be something investors are not going to be happy about
More than 14% of 500 companies have released their calendar fourth-quarter results so far. Of those, 72.9% have topped earnings estimates. However, only 58.7% of those companies have exceeded their forecasts.
The International Monetary Fund (IMF) revised down its estimates for global growth earlier this week, projecting a 3.5 percent growth rate across the globe in 2019, and 3.6 percent for next year. The fund had already slashed its forecasts back in October, due to trade tensions, however issues still remain as the institution keeps its eye on other topics filled with uncertainty, such as Brexit. Weak economic data out of China didn't ease fears either.
Dow investors are relieved by the news, following somewhat steep falls over the past few weeks.