You are here: Home » Reuters » News
Business Standard

Wall St rallies on earnings optimism

Reuters  |  NEW YORK 

By Chuck Mikolajczak

NEW YORK (Reuters) - rallied on Tuesday in the wake of a host of solid earnings reports that put corporate profits on track to snap a four-quarter streak of declines.

Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81 percent have reported earnings that topped average analyst estimates, according to Thomson Reuters I/B/E/S.

Third-quarter earnings are now expected to show growth of 0.2 percent, which would mark an end to the U.S. profit recession that began in the third quarter of 2015.

If the quarter stays on track, it will be the first time since the fourth-quarter of 2014 in which both earnings and revenue of S&P 500 companies increased.

"We are off to a great start, I don't think the ultimate conclusion will be as good as the start has been," said Stephen Massocca, Chief Investment Officer at Wedbush Equity Management LLC in San Francisco.

Massocca cautioned, however, that it was still early in the earnings season.

"You have all these companies yet to report. That is really when the dance is going to start."

The Dow Jones industrial average <.DJI> rose 97.35 points, or 0.54 percent, to 18,183.75, the S&P 500 <.SPX> gained 16.29 points, or 0.77 percent, to 2,142.79 and the Nasdaq Composite <.IXIC> added 58.44 points, or 1.12 percent, to 5,258.26.

Gaines were broad, with each of the 11 major S&P sectors in positive territory, led by a 1.2-percent gain in healthcare <.SPXHC>, boosted by a UnitedHealth's 7-percent jump after quarterly results and forecast.

Gains in the sector were curbed by a 2.5-percent decline in Johnson & Johnson , while Pfizer gained 1.1 percent on plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Netflix was the biggest gainer on the S&P 500, rising nearly 20 percent after posting quarterly results and much higher-than-expected subscriber growth.

Goldman Sachs rose 2 percent after the bank's results blew past estimates, mirroring the performance of its peers and helping lift the NYSE Arca Broker/Dealers index <.XBD> 1.4 percent.

Among the decliners, IBM , fell 2.7 percent after reporting its 18th straight quarter of revenue decline.

Intel , scheduled to report after markets close, rose 1.5 percent on a Barclays upgrade. Yahoo , also due to report in the evening, climbed 1.3 percent.

Advancing issues outnumbered declining ones on the NYSE by a 4.24-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favored advancers.

The S&P 500 posted 3 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 41 new highs and 52 new lows.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

Wall St rallies on earnings optimism

NEW YORK (Reuters) - Wall Street rallied on Tuesday in the wake of a host of solid earnings reports that put corporate profits on track to snap a four-quarter streak of declines.

By Chuck Mikolajczak

NEW YORK (Reuters) - rallied on Tuesday in the wake of a host of solid earnings reports that put corporate profits on track to snap a four-quarter streak of declines.

Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81 percent have reported earnings that topped average analyst estimates, according to Thomson Reuters I/B/E/S.

Third-quarter earnings are now expected to show growth of 0.2 percent, which would mark an end to the U.S. profit recession that began in the third quarter of 2015.

If the quarter stays on track, it will be the first time since the fourth-quarter of 2014 in which both earnings and revenue of S&P 500 companies increased.

"We are off to a great start, I don't think the ultimate conclusion will be as good as the start has been," said Stephen Massocca, Chief Investment Officer at Wedbush Equity Management LLC in San Francisco.

Massocca cautioned, however, that it was still early in the earnings season.

"You have all these companies yet to report. That is really when the dance is going to start."

The Dow Jones industrial average <.DJI> rose 97.35 points, or 0.54 percent, to 18,183.75, the S&P 500 <.SPX> gained 16.29 points, or 0.77 percent, to 2,142.79 and the Nasdaq Composite <.IXIC> added 58.44 points, or 1.12 percent, to 5,258.26.

Gaines were broad, with each of the 11 major S&P sectors in positive territory, led by a 1.2-percent gain in healthcare <.SPXHC>, boosted by a UnitedHealth's 7-percent jump after quarterly results and forecast.

Gains in the sector were curbed by a 2.5-percent decline in Johnson & Johnson , while Pfizer gained 1.1 percent on plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Netflix was the biggest gainer on the S&P 500, rising nearly 20 percent after posting quarterly results and much higher-than-expected subscriber growth.

Goldman Sachs rose 2 percent after the bank's results blew past estimates, mirroring the performance of its peers and helping lift the NYSE Arca Broker/Dealers index <.XBD> 1.4 percent.

Among the decliners, IBM , fell 2.7 percent after reporting its 18th straight quarter of revenue decline.

Intel , scheduled to report after markets close, rose 1.5 percent on a Barclays upgrade. Yahoo , also due to report in the evening, climbed 1.3 percent.

Advancing issues outnumbered declining ones on the NYSE by a 4.24-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favored advancers.

The S&P 500 posted 3 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 41 new highs and 52 new lows.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Wall St rallies on earnings optimism

By Chuck Mikolajczak

NEW YORK (Reuters) - rallied on Tuesday in the wake of a host of solid earnings reports that put corporate profits on track to snap a four-quarter streak of declines.

Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81 percent have reported earnings that topped average analyst estimates, according to Thomson Reuters I/B/E/S.

Third-quarter earnings are now expected to show growth of 0.2 percent, which would mark an end to the U.S. profit recession that began in the third quarter of 2015.

If the quarter stays on track, it will be the first time since the fourth-quarter of 2014 in which both earnings and revenue of S&P 500 companies increased.

"We are off to a great start, I don't think the ultimate conclusion will be as good as the start has been," said Stephen Massocca, Chief Investment Officer at Wedbush Equity Management LLC in San Francisco.

Massocca cautioned, however, that it was still early in the earnings season.

"You have all these companies yet to report. That is really when the dance is going to start."

The Dow Jones industrial average <.DJI> rose 97.35 points, or 0.54 percent, to 18,183.75, the S&P 500 <.SPX> gained 16.29 points, or 0.77 percent, to 2,142.79 and the Nasdaq Composite <.IXIC> added 58.44 points, or 1.12 percent, to 5,258.26.

Gaines were broad, with each of the 11 major S&P sectors in positive territory, led by a 1.2-percent gain in healthcare <.SPXHC>, boosted by a UnitedHealth's 7-percent jump after quarterly results and forecast.

Gains in the sector were curbed by a 2.5-percent decline in Johnson & Johnson , while Pfizer gained 1.1 percent on plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Netflix was the biggest gainer on the S&P 500, rising nearly 20 percent after posting quarterly results and much higher-than-expected subscriber growth.

Goldman Sachs rose 2 percent after the bank's results blew past estimates, mirroring the performance of its peers and helping lift the NYSE Arca Broker/Dealers index <.XBD> 1.4 percent.

Among the decliners, IBM , fell 2.7 percent after reporting its 18th straight quarter of revenue decline.

Intel , scheduled to report after markets close, rose 1.5 percent on a Barclays upgrade. Yahoo , also due to report in the evening, climbed 1.3 percent.

Advancing issues outnumbered declining ones on the NYSE by a 4.24-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favored advancers.

The S&P 500 posted 3 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 41 new highs and 52 new lows.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard