Tokyo, July 19 (Xinhua/UNB) -- Tokyo stocks closed sharply higher Friday as sentiment being lifted by solid performances on overseas bourses saw investors take to buying back issues deemed oversold during the market's three-day downturn.
The 225-issue Nikkei Stock Average climbed 420.75 points, or 2.0 percent, from Thursday to close the day at 21,466.99.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 29.69 points, or 1.94 percent, to finish at 1,563.96.
All industry categories advanced into positive territory, with farm and fishery, securities house, and food-related issues comprising those that gained the most by the close of play.
New York, Jul 19 (AP/UNB) — U.S. stocks reversed course from an early slump and closed higher Thursday to break a two-day losing streak after technology and bank stocks rallied.
Corporate earnings are in full swing and investors have been cautiously assessing results and company statements. The volatile market is still on track for a weekly loss despite the S&P 500 opening the week with a record high close. The pullback has barely dented the big gains made by every major index this year, including a 19.5% rise for the S&P 500 index.
The latest batch of results are providing a better picture of the economy after months of ups and downs in the market because of policy concerns and lingering trade disputes.
"We've been watching the game and now we actually get to see the scorecard," said Brad McMillan, chief investment officer for Commonwealth Financial Network.
The results so far have reflected financial strength from banks as the broader economy holds up with solid job growth and consumer confidence.
"The consumers are still making things happen out there and it's showing up in the earnings to a surprising degree," he said.
The S&P 500 index rose 10.69 points, or 0.4%, to 2,995.11. The Dow Jones Industrial Average edged up 3.12 points to 27,222.97. It was down as much as 151 points earlier. The Nasdaq composite rose 22.04 points, or 0.3%, to 8,207.24.
IBM rose 4.6% after reporting solid results. The company, along with Apple, helped lift the technology sector to lead the broader gains.
Banks led financial stocks higher. BB&T rose 2.8% and SunTrust Banks rose 2.7%. Both reported earnings that easily beat analysts' estimates.
Medical equipment makers helped health care stocks reverse course after an early loss. Danaher rose 2.4% after reporting solid second quarter results. Abbott Laboratories and Thermo Fisher both rose 2.3%.
Market indexes were down most of the day after Netflix plunged 10.3% in heavy trading and took other communications companies down with it. The streaming video service reported a slump in new subscribers that could mean trouble as it faces a new wave of competition from Disney and Apple.
Communications stocks remained the day's biggest loser. Consumer-oriented and energy stocks also fell. Dollar Tree shed 1.9% and Apache lost 3.8%.
Financial results remain a mixed bag for many companies. Only about 13% of S&P 500 companies have reported, according to FactSet, and analysts expect profits to fall 2.4% overall when every report is tallied.
Union Pacific rose 5.9% after the railroad operator reported profit growth and beat Wall Street forecasts despite hauling less freight. The company cut expenses by 7% during the quarter as shipments fell amid ongoing trade disputes. On Wednesday, rival CSX cut its revenue forecast as it deals with a slowdown in shipments.
Philip Morris International rose 8.2% after the cigarette maker raised its profit forecast for the year following a solid second quarter.
Genuine Parts fell 4.5% after the maker of automotive parts reported weak second quarter financial results and trimmed its profit outlook. The company said it is experiencing weaker demand in Europe.
Microsoft rose 1.6% after the close of regular trading. The technology company's second quarter profit, which it reported after the closing bell, beat Wall Street forecasts.
Several other large companies are expected to report results Friday, including American Express and Schlumberger.
Benchmark crude oil fell $1.48 to settle at $55.30 a barrel. Brent crude oil, the international standard, fell $1.73 to close at $61.93 a barrel. Wholesale gasoline fell 5 cents to $1.83 per gallon. Heating oil declined 3 cents to $1.86 per gallon. Natural gas fell 1 cent to $2.29 per 1,000 cubic feet.
Gold rose $4.80 to $1,426.10 per ounce, silver rose 23 cents to $16.12 per ounce and copper fell 1 cent to $2.70 per pound.
The dollar fell to 107.52 Japanese yen from 108.10 yen on Wednesday. The euro strengthened to $1.1266 from $1.1223.
Dallas, Jul 19 (AP/UNB) — Boeing said Thursday it is booking a $4.9 billion charge to cover possible compensation to airlines that have canceled thousands of flights since the 737 Max jet was grounded after two deadly accidents.
The airplane builder also said the Max-related fallout will cut $5.6 billion from its revenue and pre-tax earnings in the April-through-June quarter.
The Chicago-based company said the calculations were based on an assumption that regulatory approval for the plane's return to flying will begin early in the fourth quarter.
That timing is earlier than some analysts expected and may have contributed to a rally in Boeing shares in after-hours trading. Boeing is scheduled to report its quarterly results next week.
Boeing also raised its estimate of Max production costs by $1.7 billion because output will be curtailed longer than expected.
Boeing is still working on fixing flight-control software that appeared to play a role in crashes that killed 346 people off the coast of Indonesia and in Ethiopia. In March, regulators grounded the Boeing 737 Max and the company suspended deliveries of new jets.
The $4.9 billion charge does not include amounts that Boeing may pay in the dozens of lawsuits filed by families of crash victims. Boeing this week hired a victims-compensation expert to oversee a $50 million relief fund for families, which the company said was separate from the lawsuits.
The $5.6 billion hit to pre-tax earnings is more than half of Boeing's $10.5 billion profit for all of 2018.
"The Max grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks," Chairman and CEO Dennis Muilenburg said in a statement.
CFRA Research analyst Jim Corridore said putting a figure on airline compensation and the potential return of the plane in the fourth quarter provided important clarity around the damage inflicted by the grounding.
"We expected a large charge, and this is in the order of magnitude we were expecting," he said. "In general, we are happy to have some details."
The plane's return has been pushed back several times, most recently after Federal Aviation Administration pilots found a new flaw while testing Boeing software changes in a flight simulator.
That discovery prompted Boeing to say in late June that it expected to present its proposed fix to the FAA "in the September timeframe." It would likely take several more weeks for the FAA and other regulators to approve Boeing's work, give pilots additional training, and bring long-parked jets up to flying condition.
Boeing says concessions to airlines will be spread over several years but it is taking the entire estimated expense as a charge in the second quarter. Boeing did not specify what form the compensation would take, but hinted that it would not be entirely in cash.
Despite the grounding, Boeing has kept building Max jets, although at a reduced rate of 42 per month, down from 52, since April. The company said Thursday that it assumed it can raise production gradually to 57 per month in 2020.
Boeing has delivered fewer than 400 Max planes but has unfilled orders for about 4,500.
Shares of Boeing Co. rose $7.54, or 2.1%, to $368.65 during after-hours trading. Before the announcement, they fell $8.41 to end regular trading at $361.11.
Tokyo, Jul 19 (AP/UNB) — Japan has summoned South Korea's ambassador to protest Seoul's refusal to join in an arbitration panel to settle a dispute over World War II labor.
South Korea had until midnight Thursday to respond to Japan's request for a three-nation panel.
The neighboring countries are quarreling over South Korean court decisions ordering Japanese companies to compensate victims of forced labor during Japan's 1910-1945 colonial rule of the Korean Peninsula.
Tokyo is considering taking the issue to the International Court of Justice.
Kyodo News service says Foreign Minister Taro Kono summoned South Korean Ambassador to Japan Nam Gwan Pyo on Friday morning.
At the same time, Seoul is protesting Japan's tightened controls on high-tech exports to South Korea that could affect global supplies of smartphones and displays.
Frankfurt, Jul 19 (AP/UNB) — BMW has named its top production manager, Oliver Zipse, as CEO to lead the luxury automaker through a shift to new ways of doing business such as electric vehicles and offering cars on a per-use basis.
The company said Thursday that Zipse, 55, would succeed Harald Krueger on Aug. 16. Krueger, 53, had said July 5 he would not seek to renew his contract when it expires next May.
The BMW board of directors made the decision during a meeting at its plant in Spartanburg, South Carolina, where it turns out SUVs for U.S. customers and for export.
Krueger's tenure has seen the company lose its global lead in luxury sales to rival Mercedes. The company built an early lead in battery cars with its i3 city car, but was slow to follow up with more battery models, choosing to emphasize battery-internal combustion hybrids while Tesla seized market share in premium battery cars.
Zipse, a mechanical engineer who started at BMW as a trainee in 1991, must now steer the company through a shifting business environment in which software and services are playing an increasing role. Tesla has challenged automakers in the field of electric cars, while tech companies Waymo and Uber are working on autonomous vehicles. BMW has joined its services businesses in a joint venture with competitor Daimler AG, maker of Mercedes-Benz cars. Those businesses include its Free Now taxi-hailing and its Share Now carsharing service.
BMW board chairman Norbert Reithofer, who was Krueger's predecessor as CEO, said that Zipse "will provide the BMW Group with fresh momentum in shaping the mobility of the future."
BMW lost 310 million euros on its automotive business in the first quarter after the company was hit by a 1.4 billion euro ($1.6 billion) charge for an anti-trust case and by higher upfront costs for new technology. Only the financial services and motorcycle divisions pushed the company to a net profit of 588 million euros.
The company reports second quarter earnings on Aug. 1.