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Bank rally helps Wall Street as investors await strong earnings

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks rose on Monday, with banks and industrial stocks driving a third day of gains on Wall Street as investors looked ahead to a strong quarterly earnings season, setting aside trade concerns.

were the biggest gainers, with the banks index rising 2.4 percent, on track for its biggest percentage gain in over three months, helped by a rise in U.S. yields.

JPMorgan, and are scheduled to report on Friday, kicking off the second quarter earnings season in earnest.

"The market is anticipating a very good earnings season and ignoring any trade issues," said Paul Nolte, at in

"We're not likely to get much color on trade from this earnings, so the expectation is still for a very good season."

The and slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday, escalating a months-long trade dispute between the two countries.

But strong U.S. jobs data and hope that the tariff enactment would not end in an all-out trade war helped U.S. stocks close higher on Friday.

Estimates for 500 second-quarter profit growth have risen slightly since April, putting the latest forecast at around 20.7 percent, based on data.

A BofA Merrill Lynch Global Research report showed earnings per share for 500 companies for 2018 was revised higher to $159 from $153, amid better-than-expected first-quarter results, and stronger-than-expected U.S. economic growth.

At 12:47 p.m. ET the was up 309.30 points, or 1.26 percent, at 24,765.78, the was up 21.45 points, or 0.78 percent, at 2,781.27 and the was up 37.22 points, or 0.48 percent, at 7,725.60.

Seven of the 11 S&P sectors rose, led by a 2 percent jump in the financial index.

rose 3.8 percent, providing the biggest boost to the Dow. The sector jumped 1.8 percent, with defense stocks Boeing, and gaining.

sank 8.6 percent after reported that the company suspended more than 70 million fake accounts in May and June, which analysts said could be negative for user growth.

Advancing issues outnumbered decliners for a 1.92-to-1 ratio on the NYSE and for a 1.53-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and no new lows, while the Nasdaq recorded 127 new highs and 25 new lows.

(Reporting by in Bengaluru; Editing by Shounak Dasgupta)

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

First Published: Mon, July 09 2018. 22:58 IST
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