Wall St. rallies over 2 percent with earnings, data boost





By Lewis Krauskopf

NEW YORK (Reuters) - U.S. stocks surged more than 2 percent on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off.

Wall Street's three major indexes tallied their biggest one-day percentage gains since March. The small-cap Russell 2000 recorded its biggest single-session gain in nearly two years.

Technology, which sold off heavily in the recent pullback, led the gains as all 11 major sectors were positive.

Investors are expecting another strong quarter of corporate profits, hoping the reports can calm nerves following concerns over global trade tensions and rising bond yields. Third-quarter earnings for S&P 500 companies are expected to have climbed 21.8 percent, according to I/B/E/S data from Refinitiv.

"The corporate profits have certainly been the biggest prop for this market, and so a lot of weight is going to be given to how those corporate profits come out," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "We are early in the season, but so far so good, especially today."

The gains marked a partial recovery from Wall Street's recent steep pullback from record levels. The S&P 500 last week posted its biggest weekly drop since March, and some market-watchers said it was not clear that the recent volatility was over.

"It's mostly an oversold bounce," Willie Delwiche, investment strategist at Baird in Milwaukee, said of Tuesday's gains.

"The degree of the move is a function of the moves we have seen already this month more than anything else."

The Dow Jones Industrial Average rose 547.87 points, or 2.17 percent, to 25,798.42, the S&P 500 gained 59.13 points, or 2.15 percent, to 2,809.92 and the Nasdaq Composite added 214.75 points, or 2.89 percent, to 7,645.49.

The technology sector gained 3.0 percent while healthcare rose 2.9 percent. Those two groups have led the S&P 500's advance this year.

Goldman Sachs and Morgan Stanley reported better-than-expected quarterly profits, helped by strength in stock trading and equity underwriting, wrapping up a strong quarter for the big U.S. banks. Goldman shares rose 3.0 percent, while Morgan Stanley shares gained 5.7 percent.

In healthcare, shares of diversified product company Johnson & Johnson rose 1.9 percent, while insurer UnitedHealth Group gained 4.7 percent following their respective quarterly reports.

Adobe shares jumped 9.5 percent following the software company's analyst meeting, adding to the day's upbeat sentiment for tech.

Walmart shares rose 2.1 percent as its chief executive urged investors to revise their view of the company's business.

After the market closed, shares of Netflix, one of the closely watched group of FANG momentum stocks, jumped following the streaming video company's report.

On the downside, BlackRock shares dropped 4.4 percent after the world's biggest asset manager reported its lowest sales of equity, bond and other long-term investments since the second quarter of 2016.

Shares of industrial distributor W W Grainger tumbled 11.9 percent after its report.

In economic data, U.S. industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, while other data showed job openings hit a record high in August.

About 7.5 billion shares changed hands in U.S. exchanges. That was below the 7.9 billion daily average over the last 20 sessions, and well lower than busier trading days last week when the market was sliding.

Advancing issues outnumbered declining ones on the NYSE by a 5.17-to-1 ratio; on Nasdaq, a 4.02-to-1 ratio favored advancers.

The S&P 500 posted five new 52-week highs and seven new lows; the Nasdaq Composite recorded 17 new highs and 76 new lows.


(Additional reporting by Medha Singh in Bengaluru; Editing by Nick Zieminski and James Dalgleish)

COMMENTS

More Related News

Tesla could plummet another 10% before finding a bottom, chart analyst warns
Tesla could plummet another 10% before finding a bottom, chart analyst warns

Tesla shares are careening out of control this year, and charts suggest another double-digit drop before hitting their next level of support.

3 Pot Stocks Wall Street Bought in the First Quarter
3 Pot Stocks Wall Street Bought in the First Quarter

These very popular marijuana stocks were scooped up by top-tier money managers.

Morgan Stanley Slashes Worst-Case Price for Tesla to $10
Morgan Stanley Slashes Worst-Case Price for Tesla to $10

"Demand is at the heart of the problem," analysts led by Adam Jonas said in a note. Jonas lowered his "bear case" for Tesla shares from a previous estimate of $97, which assumes Tesla misses its current sales forecast in China by about half, and kept a price target of $230. The stock fell 2.6% to $200 in pre-market trading.

3 Big-Name Pot Stocks Money Managers Dumped in the First Quarter
3 Big-Name Pot Stocks Money Managers Dumped in the First Quarter

According to quarterly 13-F filings, Wall Street rang the register on these popular marijuana stocks.

Blockchain takes centre stage as innovative FinTech services become
Blockchain takes centre stage as innovative FinTech services become 'new normal'

FinTech platform revenues will reach $638 billion by 2024, up from an estimated $263 billion in 2019. And blockchain technology will have a key role to play, according to Juniper Research. Along with the likes of machine learning and Big Data analytics, it will be the cornerstone of FinTech platforms. Such technologies will make new use cases mainstream, including smart contracts, loan underwriting using AI to analyse non-traditional data sources, and personalised insurance policies based on IoT-generated data. Incumbents fight back In light of rising customer acceptance of digital platforms for financial services, traditional players are responding rapidly. Incumbents are attempting to...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.