“IBM’s drop is weighing down on the Dow today,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $130 billion, said by telephone. “Capital is selectively flowing to where growth is the best. We’re seeing a little of bit growth here in the U.S. and that’s helping investor returns overall.”
General Electric Co., the largest maker of jet engines, fell 4.1% and McDonald’s Corp., the biggest restaurant chain by sales, declined at least 2% after profit matched analysts’ estimates.
Earnings beat estimates at 72% of the 103 companies in the S&P 500 that posted results so far this season, while less than 50% exceeded revenue projections, according to data compiled by Bloomberg.
The Stoxx Europe 600 Index climbed 0.5% for the first advance in six days. The gauge lost 2.5% this week, the biggest drop since November.
Kazakhmys Plc surged 24% and Vedanta Resources Plc rallied 6.1% as a gauge of European mining companies rebounded from a 3 1/2-year low. L’Oreal SA rose 4.3% after the world’s largest cosmetics maker reported an increase in first-quarter revenue.
The euro was little changed $1.3056, while climbing against 11 of 16 major peers. German Finance Minister Wolfgang Schaeuble said the European Central Bank should reduce liquidity in the euro area, according to Wirtschaftswoche magazine.
The pound weakened against 14 of 16 major peers, losing more than 0.8% against the South Korean won and Brazilian real and slipping 0.3% to $1.5229. Fitch lowered the U.K. to AA+ from AAA on a weaker economic and fiscal outlook. It cut its growth projection and forecast that debt would peak at 101% of gross domestic product in the fiscal year 2015-2016.