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Wall Street rallies on strong corporate earnings reports

Reuters 

By Yashaswini Swamynathan

(Reuters) - rallied broadly on Tuesday, as a slew of better-than-expected quarterly reports, including those from Netflix and UnitedHealth, buoyed investor sentiment.

All of the 11 major S&P 500 sectors were higher, led by an 1.13 percent rise in the healthcare index.

UnitedHealth rose 6 percent after the health insurer said it expect the strong growth seen in 2016 to continue into 2017. Other health insurers also gained on the news.

Netflix was the top boost and biggest gainer on the S&P 500, rising 17.5 percent to $117.41 after the video streaming website added many more subscribers in the third quarter than expected.

Goldman Sachs rose 2.2 percent, lifting shares of other banks, after the company's results blew past estimates, mirroring results at its peers.

Of the 37 S&P 500 companies that have reported results until Monday, 78 percent have reported earnings that have topped analysts average estimate, according to Thomson Reuters I/B/E/S.

These market-beating reports have led analysts to narrow their estimate for the drop in third-quarter profit at S&P 500 companies to 0.1 percent from their earlier view of 0.7 percent.

"The markets are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

A report from the Labor Department showed consumer prices rose 0.3 percent in September, after rising 0.2 percent the previous month, due to strong gains in gasoline and rents.

At 9:39 a.m. ET the Dow Jones Industrial Average was up 105.09 points, or 0.58 percent, at 18,191.49.

The S&P 500 was up 14.72 points, or 0.69 percent, at 2,141.22 and the Nasdaq Composite was up 48.11 points, or 0.93 percent, at 5,247.93.

Among the laggards was IBM, falling 3.13 percent after reporting its 18th straight quarter of revenue decline.

Johnson & Johnson was down 0.5 percent, while Pfizer gained 0.8 percent on after it announced plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Intel, scheduled to report after markets close, rose 1.6 percent on a Barclays upgrade. Yahoo, also due to report in the evening, was up 0.7 percent.

Advancing issues outnumbered decliners on the NYSE by 2,406 to 310. On the Nasdaq, 1,857 issues rose and 401 fell.

The S&P 500 index showed one new 52-week highs and no new lows, while the Nasdaq recorded 21 new highs and 12 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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

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Wall Street rallies on strong corporate earnings reports

(Reuters) - Wall Street rallied broadly on Tuesday, as a slew of better-than-expected quarterly reports, including those from Netflix and UnitedHealth, buoyed investor sentiment.

By Yashaswini Swamynathan

(Reuters) - rallied broadly on Tuesday, as a slew of better-than-expected quarterly reports, including those from Netflix and UnitedHealth, buoyed investor sentiment.

All of the 11 major S&P 500 sectors were higher, led by an 1.13 percent rise in the healthcare index.

UnitedHealth rose 6 percent after the health insurer said it expect the strong growth seen in 2016 to continue into 2017. Other health insurers also gained on the news.

Netflix was the top boost and biggest gainer on the S&P 500, rising 17.5 percent to $117.41 after the video streaming website added many more subscribers in the third quarter than expected.

Goldman Sachs rose 2.2 percent, lifting shares of other banks, after the company's results blew past estimates, mirroring results at its peers.

Of the 37 S&P 500 companies that have reported results until Monday, 78 percent have reported earnings that have topped analysts average estimate, according to Thomson Reuters I/B/E/S.

These market-beating reports have led analysts to narrow their estimate for the drop in third-quarter profit at S&P 500 companies to 0.1 percent from their earlier view of 0.7 percent.

"The markets are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

A report from the Labor Department showed consumer prices rose 0.3 percent in September, after rising 0.2 percent the previous month, due to strong gains in gasoline and rents.

At 9:39 a.m. ET the Dow Jones Industrial Average was up 105.09 points, or 0.58 percent, at 18,191.49.

The S&P 500 was up 14.72 points, or 0.69 percent, at 2,141.22 and the Nasdaq Composite was up 48.11 points, or 0.93 percent, at 5,247.93.

Among the laggards was IBM, falling 3.13 percent after reporting its 18th straight quarter of revenue decline.

Johnson & Johnson was down 0.5 percent, while Pfizer gained 0.8 percent on after it announced plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Intel, scheduled to report after markets close, rose 1.6 percent on a Barclays upgrade. Yahoo, also due to report in the evening, was up 0.7 percent.

Advancing issues outnumbered decliners on the NYSE by 2,406 to 310. On the Nasdaq, 1,857 issues rose and 401 fell.

The S&P 500 index showed one new 52-week highs and no new lows, while the Nasdaq recorded 21 new highs and 12 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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

image
Business Standard
177 22

Wall Street rallies on strong corporate earnings reports

By Yashaswini Swamynathan

(Reuters) - rallied broadly on Tuesday, as a slew of better-than-expected quarterly reports, including those from Netflix and UnitedHealth, buoyed investor sentiment.

All of the 11 major S&P 500 sectors were higher, led by an 1.13 percent rise in the healthcare index.

UnitedHealth rose 6 percent after the health insurer said it expect the strong growth seen in 2016 to continue into 2017. Other health insurers also gained on the news.

Netflix was the top boost and biggest gainer on the S&P 500, rising 17.5 percent to $117.41 after the video streaming website added many more subscribers in the third quarter than expected.

Goldman Sachs rose 2.2 percent, lifting shares of other banks, after the company's results blew past estimates, mirroring results at its peers.

Of the 37 S&P 500 companies that have reported results until Monday, 78 percent have reported earnings that have topped analysts average estimate, according to Thomson Reuters I/B/E/S.

These market-beating reports have led analysts to narrow their estimate for the drop in third-quarter profit at S&P 500 companies to 0.1 percent from their earlier view of 0.7 percent.

"The markets are expecting an inflection point as we move from the third to the fourth quarter, and so what they will be parsing in management guidance is for a view that earnings turn positive in the fourth quarter," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management.

A report from the Labor Department showed consumer prices rose 0.3 percent in September, after rising 0.2 percent the previous month, due to strong gains in gasoline and rents.

At 9:39 a.m. ET the Dow Jones Industrial Average was up 105.09 points, or 0.58 percent, at 18,191.49.

The S&P 500 was up 14.72 points, or 0.69 percent, at 2,141.22 and the Nasdaq Composite was up 48.11 points, or 0.93 percent, at 5,247.93.

Among the laggards was IBM, falling 3.13 percent after reporting its 18th straight quarter of revenue decline.

Johnson & Johnson was down 0.5 percent, while Pfizer gained 0.8 percent on after it announced plans to ship a cheaper biosimilar to Remicade, JNJ's top selling product. The news overshadowed J&J's slight earnings beat.

Intel, scheduled to report after markets close, rose 1.6 percent on a Barclays upgrade. Yahoo, also due to report in the evening, was up 0.7 percent.

Advancing issues outnumbered decliners on the NYSE by 2,406 to 310. On the Nasdaq, 1,857 issues rose and 401 fell.

The S&P 500 index showed one new 52-week highs and no new lows, while the Nasdaq recorded 21 new highs and 12 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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

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