Big Blue’s Big Day Lifts the Dow

International Business Machines (IBM) enjoyed a rare post-earnings celebration on Wednesday that led the Dow to a rebound from Tuesday’s losses. IBM, whose stock had suffered next-day declines after 16 of its past 20 quarterly reports, rocketed ahead by 8.5% following a fourth-quarter report released late Tuesday that included better-than-expected profits and guidance for 2019. Fellow Dow component Procter & Gamble (PG) helped the cause with a 4.9% gain triggered by its own earnings beat and strong organic sales growth in China. The industrial average finished the session up 0.7% to 24,575.

Macroeconomic headlines still are steering the larger ship, though investors seem ready to pounce on quarterly earnings reports — for better or worse. That likely means short bursts of volatility for even the biggest of blue-chip names. The key to digesting any company-specific news, whether it’s quarterly earnings, mergers or business initiatives, is to focus on how (or even whether) the headlines change the long-term trajectory of your holdings. Think decades, not just years. That’s why low-fee, high-quality index funds are a good choice for some stock exposure; they keep you from making knee-jerk reactions to every last headline.

Source: Kiplinger

 Trader Georgi Bozhidarov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance