1:20 PM New York – Market indexes on Wall Street jumped 1% after three-day of global markets selloff. Earnings announcement lifted market sentiment. Microsoft appointed Satya Nadella as chief executive and John Thompson as chairman replacing co-founder Bill Gates.
U.S. indexes rebounded in thin trading and emerging market selloff persisted after Asian markets reacted for the first to weak overnight closings in New York and Europe.
S&P 500 index increased 0.9% or 16.11 to 1,758 and the Nasdaq Composite Index jumped 1% or 43.23 to 4,039.78.
Global market selloff accelerated after the latest manufacturing data from the U.S. and China showed a slowdown and emerging markets currencies worries also compounded
U.S. manufacturing expanded in January at the slowest rate in the last eight months on a sharp slowdown in new orders, a private survey conducted by the Institute for Supply Management showed.
The PMI index dropped to 51.3 in January form 56.5 in December, however cold weather also played part in the slowdown in the growth. Any reading above 50 indicates growth and below shows a shrinkage.
Separately, China also reported its manufacturing index declined to 50.5 in January form 51 in December, official data released yesterday.
World markets have been on the defensive after a sharp upswing in 2013 and the Nikkei in the year so far plunged 14%, leading the global market decline among developed and developing markets.
The S&P 500 index is down nearly 5.4% and markets in Germany, France and UK fell more than 4% in the year so far.
Markets in Hong Kong fell 2.9% after the release of China manufacturing data and extended the loss in the year to 8.2% and the Sensex in Mumbai edged up a fraction today but declined 4.5% in the year so far.
U.S. Budget Deficit
The current year federal government budget deficit is expected to decline to $514 billion or 3% of the economy, according to the Congressional Budget Office.
The budget deficit will be the narrowest since 2007, on rising tax revenues boosted by stronger economic growth.
European markets opened lower but managed to trim losses after banks reported better than expected quarterly results.
In London trading, FTSE 100 index rose 0.1% or 6.54 to 6,472.20 and in Frankfurt the DAX index fell 0.2% or 20.77 to 9,165.75.
In Paris, CAC 40 index gained 0.6% or 24.47 to 4,132.22.
U.S. Stocks in Review
) gained 35 cents to $46.46 after the U.K.-based oil and gas explorer reported sales in the fourth-quarter ending in December slid 0.2% to $93.7 billion.
Net income in the quarter declined 29% to $1.10 billion or $5.54 diluted share compared to $1.55 billion or $7.75.
Becton Dickinson and Co
) increased 1.9% or $2.05 to $107.45 after the medical product supplier reported sales in the first-quarter ending in December advanced 6.3% to $2.02 billion.