US Market extends gain on earnings boost

The US stock market finished higher for straight second session on Tuesday, 18 October 2022, as investors celebrated another batch of better-than-expected third quarter corporate earnings reports from companies like Goldman Sachs and Johnson & Johnson. However, market gains capped as geopolitical risk re-emerged, with Secretary of State Antony Blinken accusing China of accelerating plans to seize Taiwan.

At the close of trade, the Dow Jones Industrial Average index advanced 337.98 points, or 1.12%, to 30,523.80. The S&P500 index grew 42.03 points, or 1.14%, to 3,719.98. The tech-heavy Nasdaq Composite Index increased 96.60 points, or 0.9%, to 10,772.40.

Shares of Goldman Sachs Group Inc rose after the financial services giant delivering well-received earnings reports Tuesday.

Johnson & Johnson shares rose on Tuesday after reported strong quarterly revenue and profit on strong demand for its cancer drug Darzalex and Crohn's disease drug Stelara while projecting an easing of the hit from surging inflation. The company said it expects some impact of inflation to ease next year but higher costs of inventory manufactured in 2022 could weigh on 2023 profit. It expects the impact of a stronger dollar to hit 2023 adjusted earnings by between 40 cents and 45 cents.

Shares of Apple declined after a report from The Information that the tech giant was cutting production of its new iPhone 14 Plus.

ECONOMIC NEWS: The Federal Reserve released a report showing industrial production rose by 0.4% in September after edging down by a revised 0.1% in August.

The National Association of Home Builders said its monthly confidence fell 8 points to 38 in October its 10th straight monthly decline.

Among Indian ADR, Dr Reddy's Labs added 0.5% to $53.04, HDFC Bank added 0.6% to $60.28, Tata Motors added 0.3% to $24.29, ICICI Bank added 0.4% to $21.89, Azure Power Global added 7.1% to $5.13, and WNS Holdings added 1.1% to $84.53. Wipro fell 1.1% to $4.58 and INFOSYS was down 0.5% at $18.07.

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