Business

Wall Street closes higher as earnings reports ease investor concerns

The trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 18, 2021. REUTERS / Brendan McDermid

October 20, 2021

(Delete irrelevant words)

Devik Jain, Shreyashi Sanyal, Sinéad Carew

(Reuters) – The S & P 500 and the Dow rose on Wednesday, hitting a daytime high as investors turned to better-than-expected third-quarter earnings from US companies.

The Nasdaq lags behind as tech stocks take a break, but the Dow Jones Industrial Average surpassed previous records reaching mid-August, holding back the rise during the session. The benchmark S & P 500 index fell within 5 points of its early September record at its peak of the day.

S & P’s healthcare index rose for the second straight day with the help of Anthem and Abbott. Both are based on impressive financial forecasts.

By October 4, S & P was nearly 6% below record by October 4, as investors worried about supply chain issues, margin pressures, rising wages and rising input costs ahead of the earnings season that began last week. rice field.

According to strategist and portfolio manager Jack Janasievich, US companies have cited supply chain issues and rising costs in their revenue calls, but investors have been relieved so far to pass costs on to their customers. It seems that the profit margin can be maintained by doing so. At Natixis Investment Managers Solutions.

“Revenue is important, and so far what we’ve seen was actually better than expected. Janasiewicz said the margins are actually holding up.

“The bar was set pretty low in the (earnings season), so things got a little easier … so far, things are better than expected. It puts upward pressure on stocks. I am. “

Analysts expected benchmark index revenue to increase 33% year-over-year, as it included approximately 14% of the S & P 500 Q3 report. According to the latest Refinitiv data, more than 85% of revenue is better than expected.

The Dow Jones Industrial Average rose 152.03 points (0.43%) to 35,609.34, the S & P 500 rose 16.56 points (0.37%) to 4,536.19, and the Nasdaq Composite Index fell 7.41 points (0.05%) to 15,121.68.

The CBOE Volatility Index, also known as Wall Street’s horror gauge, closed at 15.49 after reaching its lowest level since August 13, 15.29.

Eight of S & P’s 11 major industry sector indices rose, driven by utilities and real estate (both up about 1.6%) and healthcare stocks (up 1.5%).

The tech sector was the biggest delay in S & P, down 0.3%, as it recorded a five-day backlash.

The S & P 500 Value Index, which holds economically sensitive stocks such as energy and industry, rose 0.9% after hitting a record high.

However, IBM stocks fell about 5% after the bell trade on Wednesday, after missing market forecasts for third-quarter earnings due to lower orders in managed infrastructure units before the spin-off.

Tesla’s stake is low in the second half of the transaction, even after Wall Street’s third-quarter earnings forecasts were exceeded against record deliveries as electric car makers overcame a prolonged global shortage of chips and raw materials. It fell to.

Abbott Laboratories increased its regular trading session by 3.3% after raising its full-year profit forecast with a recovery in COVID-19 test sales.

Anthem Inc surged 7.7% after raising its full-year earnings forecast. However, Biogen Inc’s stock fell 0.6% as it raised its full-year earnings forecast, while quarterly sales of Alzheimer’s disease treatments were well below expectations.

Verizon Communications Inc increased 2.4% after adding more postpaid subscribers than expected in the third quarter.

On the New York Stock Exchange, ongoing issues outnumber ongoing issues by a 2.29: 1 ratio. At Nasdaq, a 1.37: 1 ratio favored the Advancer.

The S & P 500 recorded 53 new 52-week highs and no new lows. The Nasdaq Composite recorded 106 new highs and 41 new lows.

The US exchange traded 9.29 billion shares, compared to an average of 10.26 billion shares in the last 20 sessions.

(Report by Devik Jain and Shreyashi Sanial in Bangalore, edited by Sinéad Carew and Arun Koyyur in New York)



Wall Street closes higher as earnings reports ease investor concerns

Source link Wall Street closes higher as earnings reports ease investor concerns

Back to top button