**19/10/10 - 8.51am - by James Gerrish**
Financial stocks led the US market higher overnight on the back of strong result by Citigroup with the bank reporting a sharp drop in problem loans and Q3 earnings topped estimates. This sparked strong buying across the sector with Citi adding 5.6% and Wells Fargo up 5.5% - the Financial sector rose 1.6% as a group. Financials have been underperforming over the last few months and last night’s move could be enough to spark some interest in the sector.
On the market, the DOW JONES added +80 points or +0.73% to close at 11,143. In London the FTSE 100 rose +39 points or +0.69% to close at 5742. Locally, SPI FUTURES are matching +41 points higher however there was some weakness coming into the US Futures market after the close of trade.
Apple reported another blockbusting result overnight with record sales in its fourth fiscal quarter of 2010. Sales in the Americas generated $7.2 billion in revenue. Europe accounted for $5.4 billion while the Asia Pac was $2.7 billion. The company generated almost $5.7 billion in cash flow from operations in the quarter – pretty astonishing! Asia was the biggest area for growth and this has been the theme in a lot of the US companies to report so far.
In the US, although only 10% of companies have reported so far, 84% have topped estimates and this is certainly a positive start to the reporting season. Growth in Asia, Latin America and even Europe has been a key theme in the positive results.
In economic data, Industrial Production figures were a little weaker in the US overnight and once again we saw the market rally on the poor figure. This is based on heightened expectations for further stimulus.
A positive day on the local market with the main focus being on the
Minutes of the October 2010 RBA Monetary Policy Meeting of the Reserve Bank Board which are due out at 11.30am.
