You are here: Home » Reuters » News
Business Standard

Wall Street gains; investors expect strong earnings

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks rose on Monday, helped by bank, industrial and energy shares, as investors looked ahead to a strong quarterly earnings season.

stocks were the biggest gainers, with the index <.SPXBK> rising 2.3 percent, on track for its biggest percentage gain in over three months.

, Wells Fargo and are scheduled to report results on Friday, kicking off the second-quarter earnings season in earnest.

A stronger and plans for more buybacks are helping shares, said Bucky Hellwig, at in Birmingham,

Investors may also be relieved following days of worry over trade tensions between the and China, he said.

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.

"If it escalates, maybe it could become a problem but the angst going into last Friday was pretty significant, and now with just the realization that we're here and the world hasn't come to an end, and we're on the eve of what's going to be a dynamite earnings season, the money is falling in," Hellwig said.

A of America Merrill Lynch Global Research report showed earnings per share for companies for 2018 was revised higher amid better-than-expected first-quarter results, and stronger-than-expected U.S. economic growth.

Analysts' estimates for second-quarter profit growth have risen slightly since April, putting the latest forecast at around 21 percent, according to data.

The <.DJI> rose 314.81 points, or 1.29 percent, to 24,771.29, the <.SPX> gained 21.07 points, or 0.76 percent, to 2,780.89 and the <.IXIC> added 50.40 points, or 0.66 percent, to 7,738.79.

rose 3.8 percent, providing the biggest boost to the Dow. The <.SPLRCI> jumped 1.7 percent.

sank 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. It pared losses after its tweeted that most accounts removes are not included in reported metrics. The stock was last down 5.4 percent.

Advancing issues outnumbered declining ones on the NYSE by a 1.81-to-1 ratio; on Nasdaq, a 1.64-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and no new lows; the recorded 136 new highs and 26 new lows.

(Additional reporting by in Bengaluru; Editing by and Susan Thomas)

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

First Published: Tue, July 10 2018. 01:30 IST
RECOMMENDED FOR YOU