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Market Update

Wall Street Indexes Rebound, U.S. Consumer Confidence at 7-Year High

Author: Nichole Harper
Last Update: 12:01 PM ET October 17 2014

12:00 PM New York – Market indexes on Wall Street rebounded after European Central Bank prepares to step up bond purchase program and the prospects of wider stimulus in the region rose. U.S. consumer sentiment rose to a seven-year high.

Market sentiment on Wall Street reversed after earnings were ahead of expectations and investors digested the economic stimulus benefits form the recent oil price plunge.

S&P 500 index increased 28.75 or 1.51% to 1,891.51 and the Nasdaq Composite Index added 61.48 or 1.46% to 4,278.87.

Stocks rebounded after investors factored the size of economic stimulus from the latest plunge in oil price as gas stations across the nation decline to $3 a gallon or below.

In addition, U.S. consumer confidence unexpectedly rose in October to the highest level in seven years.

The Thomson Reuters/University of Michigan preliminary sentiment index for the month increased to 86.4, the most since July 2007.

European Markets

European markets rebounded on the hopes that central banks in the euro zone will devise new plans to stimulate the economy. The latest drop in oil and commodities also helped the market sentiment.

Markets were ahead after the European Central Bank begins to purchase assets in the new stimulus program “within the next days,” Benoit Coeure, an executive board member of the central bank said today in Riga.

In London trading, FTSE 100 index increased 1.5% or 95 to 6,290.91 and in Frankfurt the DAX index dropped 2.3% or 200.34 to 8,783.24.

In Paris, CAC 40 index climbed 2.6% or 102.42 to 4,021.04.

Accor SA climbed 3.8% to €31.44 after the France-based hotel operator said total revenues in the third-quarter ending in September jumped 4.6% to €1.46 billion from €1.41 billion a year ago period.

The group estimated earnings before interest and taxes for the year between €575 and €595 million.

Rolls-Royce Holding Plc tumbled 13.9% to 809.47 pence after the U.K.-based defense, aerospace, marine and energy products maker forecasted group underlying revenue for the year to drop between 3.5% and 4% while underlying profit to remain flat compared to a year ago.

Asian Markets

Stocks in Tokyo closed for the second day in a row and market indexes extended losses for the week and for the year.

The Nikkei 225 and Topix dropped on weak banks and exporters and the Topix index wiped off the yearly gain after surging 51% in 2013.

Nikkei extended yearly losses to more than 10% and the Topix plunged 13% from a 6-year high on September 25.

The Nikkei 225 Stock Average declined 205.87 or 1.4% to 14,532.51 and the broader Topix index slumped 18.28 or 1.5% to 1,177.22.

For the week, Nikkei 225 tumbled 7.5%.

The yen gained 0.2% and closed at 106.26 against one dollar.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc