Corporate results change sentiment  (11-04-2008)

Despite the troubles in the economy, investors on Wall Street took heart from an upgrade for Apple Inc. and the improved outlook released by Wal-Mart and indices turned up after falling in the first half hour to close with solid gains. 

Asia Pacific markets followed Japan’s lead, as exporters gained as did banks in China on strong corporate results. China Merchants Bank forecast 1^st quarter earnings that were 150% higher than last year, while Industrial & Commercial Bank of China forecast a rise of 50% over the same period. In Japan Mizuho Financials gained 4.7% taking the third revised cut forecast in its stride. 

Oil retreated from the new record it was driven to because of the fall in U.S. inventories and was hovering just above $110 per barrel. 

Meanwhile back in Europe bourses had been in positive territory earlier in the trading session, but turned negative in disappointment from GE’s lower-than-expected quarterly results and lower profit outlook for 2008. The news pulled down industrials in Europe as it becomes obvious that although the credit crisis may be reaching its lower point, the rest of the economy still has big problems to overcome leading to a global slowdown. 

U.S. Market futures that had been pointing upward prior to the release of the results have turned negative and stocks look likely to open in negative territory and take it from there.

Source ISFM