Stocks Gain on Earnings Surprises; Dollar Declines: Markets Wrap

U.S. equities pared increases as better-than-expected earnings reports from
IBM, Procter & Gamble and United Technologies did little to allay concern that global growth is slowing this year. The dollar’s six-day rally stalled and crude oil erased an earlier rise.

The S&P 500, Dow Jones and Nasdaq indexes all opened higher, led by shares of
consumer-products and information-technology companies, before trimming increases. White House Council of Economic Advisers Chairman
Kevin Hassett said that if the partial government shutdown extends through March, there’s a chance of zero economic expansion this quarter, though “humongous” growth would follow once federal agencies reopen. Crude oil erased earlier gains, weighing on the shares of energy producers and service providers.

“Risk premia are quite high, so I think the markets are pricing quite a lot of uncertainty — and probably too much uncertainty on the economic front, which is why we’ve seen this recent rally,” said Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc.

Doubts over foreign trade and politics continue to permeate global markets. White House adviser
Lawrence Kudlow said late Tuesday that negotiations between the U.S. and China next week will be “
determinative,” leaving traders on edge about the prospects for a deal. Meanwhile, the Senate is set to vote Thursday on legislation to reopen the government, though it’s
not clear that any measures will pass.

Earnings from corporate behemoths including Ford, still due on Wednesday, will give investors more to chew on.

Elsewhere, WTI oil
climbed retreated after climbing above $53 a barrel. The pound strengthened for a third day after
signs emerged that the U.K. Parliament is moving closer to a plan for delaying Brexit. The yen slid as the Bank of Japan cut its inflation outlook.

These are some events investors will be watching out for in the coming days:

Earnings season is in full swing: Texas Instruments and Ford are among companies posting results this week.
The World Economic Forum, the annual gathering of global leaders in politics, business and culture, continues in Davos, Switzerland.
There are monetary-policy decisions for the Bank of Korea and the European Central Bank, both Thursday.

And these are the main moves in markets:

Stocks

The S&P 500 Index rose 0.1 percent as of 10:49 a.m. New York time, while Nasdaq Composite Index gained 0.2 percent and the Dow Jones Industrial Average climbed 0.5 percent.
The Stoxx Europe 600 Index rose 0.5 percent.
The U.K.’s FTSE 100 Index dipped 0.4 percent.
Germany’s DAX Index rose 0.4 percent.
The MSCI Emerging Market Index was little changed.

Currencies

The Bloomberg Dollar Spot Index fell less than 0.1 percent, the first drop in seven days.
The euro was little changed at $1.1360.
TheBritish pound increased 0.7 percent to $1.3044, the third straight gain.
The Japanese yen weakened 0.5 percent to 109.90 per dollar, the first drop in three days.

Bonds

The yield on 10-year Treasuries rose three basis points to 2.77 percent.
Germany’s 10-year yield fell less than one basis point to 0.24 percent, the first decline in three days.
Britain’s 10-year yield rose than two basis points to 1.35 percent.