clearn.png
Tuesday May 18th, 2021 6:21AM

Asian shares, US futures advance after Biden speech

By The Associated Press
Related Articles
  Contact Editor

Asian shares rose Thursday and U.S. futures also were higher after President Joe Biden delivered a speech to Congress outlining ambitious plans for jobs-creating spending on early education, child care and other public services.

Investors have stayed on the sidelines ahead of the release later in the day of U.S. growth data for the January-March quarter. The gross domestic product reading, could top 5% and accelerate even more to 10% or even more in the current April-June quarter as pent-up demand fuels spending.

Shares rose in Hong Kong, Shanghai, Seoul and Sydney. Bond yields held steady while oil prices advanced.

Benchmarks on Wall Street slipped Wednesday after the Federal Reserve said it is leaving its key interest rate unchanged near zero, while noting recent improvement in the economy.

In his speech Wednesday evening, the president ticked off details of some of his plan for $1.8 trillion in spending to expand preschool, create a national family and medical leave program, distribute child care subsidies and more.

The plan comes on top of his proposal for $2.3 trillion in spending to rebuild roads and bridges, expand broadband access and launch other infrastructure projects.

The future for the Dow industrials rose 0.4% while that for the S&P 500 climbed 0.6%.

In Asian trading, markets in Japan were closed for a holiday. Hong Kong's Hang Seng rose 0.6% to 29,245.26 and the Shanghai Composite index picked up 0.3% to 3,465.98. In Seoul, the Kospi gained 0.1% to 3,184.78. Australia's S&P/ASX 200 added 0.4% to 7,082.80.

In its latest policy update, the U.S. central bank left its benchmark short-term rate near zero, where it’s been since the pandemic erupted nearly a year ago, to help keep loan rates down to encourage borrowing and spending. It also said that it would keep buying $120 billion in bonds each month to try to keep longer-term borrowing rates low.

The yield on the 10-year Treasury, which influences interest rates on mortgages and other consumer loans, eased following the Fed’s statement, slipping to 1.61% from 1.62% late Tuesday.

Stocks initially got a bump following the 2 p.m. Eastern release of the Fed’s statement.

The S&P 500 dropped 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday. The Dow Jones Industrial Average lost 0.5%, to 33,820.38. The tech-heavy Nasdaq gave up 0.3% to 14,051.03.

Smaller company stocks fared better than the bigger companies. The Russell 2000 index rose 0.1%, to 2,304.16.

Wall Street has been mostly grinding higher in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, massive support from the U.S. government and the Fed, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

The expectations for a strong rebound and rising prices for oil, lumber and other commodities have also spurred concerns over inflation and the prospects for higher interest rates. Those worries pushed bond yields higher.

In its remarks, the Fed noted that the economy and job market have “strengthened." And, while it acknowledged that inflation has risen, the central bank said it sees the increase as transitory. Fed officials have said they want to see inflation exceed their 2% annual inflation target before they’d consider raising rates.

Investors also focused Wednesday on corporate earnings, with dozens of companies reporting their quarterly results.

Google's parent company, Alphabet, rose 3% after it said its profits doubled from a year earlier. Visa rose 1.5% after reporting solid financial results.

Google's solid gains helped send communications stocks higher. Oil prices rose and boosted energy company stocks, while technology and health care companies declined.

Investors punished several other companies whose results came up short. Boeing slipped 2.9%, while Spotify sank 12.3% after the music streaming company announced that subscriber growth had slowed more than expected.

Biotechnology company Amgen was among the biggest losers. It fell 7.2% after its first-quarter profits and revenue fell short of analysts' forecasts.

Facebook rose 5.5% in after-hours trading following the release of its latest earnings after the closing bell. Apple added 3.3% in extended trading after the company’s profit soared in its latest quarter on higher iPhone sales.

In other trading Thursday, benchmark U.S. crude oil rose 18 cents to $64.04 per barrel in electronic trading on the New York Mercantile Exchange. It gained 92 cents to $63.86 on Wednesday. Brent crude, the international standard, advanced 19 cents to $66.97 per barrel.

The U.S. dollar was flat at 108.61 Japanese yen. The euro rose to $1.2135 from $1.2128.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Asian shares, US futures advance after Biden speech
Asian shares and U.S. futures have risen after President Joe Biden delivered a speech to Congress that outlined ambitious plans for jobs-creating spending on early education, child care and other public services
12:12AM ( 8 minutes ago )
Some Californians can't get vaccine despite surge in supply
Just a few weeks ago, California was struggling to meet demand for COVID-19 vaccinations
12:12AM ( 9 minutes ago )
China launches main part of its 1st permanent space station
China has launched the main module of its first permanent space station that will host astronauts long-term
11:58PM ( 23 minutes ago )
Associated Press (AP)
The Latest: In GOP response, Scott says US isn't racist
South Carolina Sen_ Tim Scott has used the Republican response to President Joe Biden’s address to Congress to vow that “America is not a racist country.”
11:17PM ( 1 hour ago )
Biden speech takeaways: Government is good, and so are jobs
President Joe Biden has used his first address before a joint session of Congress to make the case that his administration has made progress during the first 100 days he’s been in office, confronting the public health and economic maelstrom caused by the coronavirus pandemic
11:01PM ( 1 hour ago )
The Latest: Biden says US government is about all Americans
President Joe Biden has ended his first address to a joint session of Congress by reaching to evoke the sweep of history
10:41PM ( 1 hour ago )
AP Online Headlines - Washington
Harris, Pelosi make history seated behind Biden at speech
Vice President Kamala Harris and House Speaker Nancy Pelosi are making history as the first two women to share the stage in Congress during a presidential address
9:17PM ( 3 hours ago )
The Latest: Harris, Pelosi make presidential address history
Vice President Kamala Harris and House Speaker Nancy Pelosi are making history as the first women to share center stage in Congress during a presidential address
9:00PM ( 3 hours ago )
The Latest: Security tight, crowd thin for Biden's address
Security is tight and the crowd is thin at the Capitol under strict coronavirus restrictions for President Joe Biden’s address to Congress
8:53PM ( 3 hours ago )
AP Online Congress News
China launches core module for permanent space station
China has launched the core module for its first permanent space station that will host astronauts long-term
11:26PM ( 54 minutes ago )
Samsung reports profit jump on smartphone, TV sales
Samsung Electronics says its operating profit for the last quarter jumped 46% from a year earlier driven by increased sales of smartphones and televisions as its business continues to flourish amid the pandemic
10:19PM ( 2 hours ago )
Feds raid Giuliani's home, office, escalating criminal probe
A law enforcement official tells The Associated Press that federal investigators have executed search warrants at Rudy Giuliani’s Manhattan residence and office
9:17PM ( 3 hours ago )
AP Business
Apple profit soars in latest quarter on higher iPhone sales
Demand for the iPhone and Apple’s other products drove profits to more than double in the January-March period as the tech giant continued to capitalize on smartphone addiction
5:52PM ( 6 hours ago )
Audio publisher withdraws edition of new Philip Roth bio
The audiobook publisher of a new Philip Roth biography is pulling the release, following W
5:18PM ( 7 hours ago )
Ford posts surprise $3.26B 1Q profit; chip shortage looms
Ford posted a surprising $3.26 billion profit in the first quarter, but the company says a worsening global computer chip shortage could cut its production in half in the current quarter
5:18PM ( 7 hours ago )
AP Business - Corporate News
The Latest: Biden to say US 'turning peril into possibility'
In his first address to Congress, President Joe Biden will declare that the nation is “turning peril into possibility, crisis into opportunity.”
5:23PM ( 6 hours ago )
Fed keeps key rate near zero, sees inflation as 'transitory'
The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support
4:52PM ( 7 hours ago )
US stock indexes mixed after Fed leaves rates unchanged
Major U.S. stock indexes are mixed in afternoon trading Wednesday after the Federal Reserve said it is leaving its key interest rate unchanged near zero, while noting recent improvement in the economy
3:34PM ( 8 hours ago )
AP Business - Economy
Global shares mostly higher before Fed meeting, Biden speech
Global shares are mostly moderately higher in listless trading as investors watch for news out of a Federal Reserve meeting
5:00AM ( 19 hours ago )
Asian shares mostly higher before Fed meeting, Biden speech
Asian shares are mostly moderately higher in listless trading as investors watch for news out of a Federal Reserve meeting
3:10AM ( 21 hours ago )
Asian shares mostly higher ahead of Fed meeting
Asian shares are mostly moderately higher in listless trading as investors watch for news out of a Federal Reserve meeting
11:51PM ( 1 day ago )
AP Business - Financial Markets
The Latest: Biden to call for Medicare drug cost negotiating
The White House says President Joe Biden’s speech to Congress will call on lawmakers to lower prescription drug costs by acting this year to empower Medicare to negotiate prices
5:36PM ( 6 hours ago )
The Latest: Biden wants Congress to let Medicare broker cost
The White House says President Joe Biden’s speech to Congress will call on lawmakers to lower prescription drug costs by acting this year to empower Medicare to negotiate prices
5:32PM ( 6 hours ago )
BioNTech boss strikes upbeat note on Europe's vaccine drive
The head of German pharmaceutical company BioNTech says more than half of Europe's population should have received the coronavirus vaccine in the next two months, allowing lockdown rules to be eased
3:48PM ( 8 hours ago )
AP Business - Industries
Asian lender forecasts strong rebound for region in 2021
The Asian Development Bank forecasts that developing Asian economies will grow at a solid 7.3% pace this year after contracting slightly in 2020 due to the pandemic
10:32PM ( 1 day ago )
Largest firefighting plane may be sold for COVID-19 response
As Western states prepare for this year’s wildfire season, the world’s largest firefighting plane has been grounded
4:50PM ( 1 day ago )
Insurer Humana moves deeper into home care with $5.7B deal
Humana is spending $5.7 billion to jump deeper into delivering care at home, a trend that took off during the pandemic and one the health insurer expects will continue to grow
4:43PM ( 1 day ago )
AP Business - Financial Services
Biden releases money in push to modernize US electric grid
The federal government is making money available to build and improve electric transmission lines
6:41PM ( 1 day ago )
Explosive-laden 'drone' boat targets Saudi port of Yanbu
A remotely piloted boat packed with explosives has targeted the Saudi port of Yanbu in the Red Sea
10:41AM ( 1 day ago )
BP to launch share buyback program after big profit spike
Energy company BP says it will be returning around half a billion dollars to shareholders after “significantly” higher oil prices contributed to a big rise in profits and a reduction in debt levels
5:14AM ( 1 day ago )
AP Business - Utilities
Some Californians can't get vaccine despite surge in supply
Just a few weeks ago, California was struggling to meet demand for COVID-19 vaccinations
12:12AM ( 9 minutes ago )
China launches main part of its 1st permanent space station
China has launched the main module of its first permanent space station that will host astronauts long-term
11:58PM ( 23 minutes ago )
Phillies' Bryce Harper hit by pitch in face, "feels good"
Phillies star Bryce Harper said he feels fine after being hit in the face by a 96.9 mph fastball Wednesday night, forcing him from Philadelphia’s game against St. Louis
11:55PM ( 26 minutes ago )
Biden's declaration: America's democracy 'is rising anew'
President Joe Biden declared Wednesday night in his first address to a joint session of Congress that “America is rising anew."
11:47PM ( 34 minutes ago )
Biden's declaration: America's democracy "is rising anew'
President Joe Biden declared Wednesday night in his first address to a joint session of Congress that “America is rising anew."
11:35PM ( 45 minutes ago )