Dow Rumbles 300+ on Strong Earnings

By Baystreet Market Updates

Stocks rose sharply on Tuesday after the release of strong quarterly results from some of the largest U.S. companies helped the market recover from last week’s selloff.

The Dow Jones Industrials surged 362.93 points, or 1.4%, to break for lunch at 25,613.48, with UnitedHealth outperforming.

The S&P 500 recovered 40.76 points, or 1.5%, to 2,791.55, as the tech and health care sectors jumped more than 2% each.

The NASDAQ popped 146.29 points, or 2%, to 7,577.04

Morgan Stanley jumped more than 4% after reporting better-than-expected earnings. Goldman Sachs’ profits also beat estimates, sending the stock up 1.6%. Dow-members Johnson & Johnson and UnitedHealth both posted better-than-expected earnings.

BlackRock posted mixed quarterly results, as earnings topped estimates while sales missed.

Investors will turn their eyes to Netflix after the close on Tuesday, as the company releases its quarterly results. In the previous earnings season, the streaming giant fell sharply as its subscriber growth was less than expected.

Investors came into the earnings season with high hopes. Analysts polled by FactSet expect third-quarter S&P 500 earnings to have grown by 19%

However, Dow-component Walmart slashed its fiscal 2019 earnings forecast on Tuesday, citing its Flipkart acquisition. The earnings season comes as Wall Street tries to recover from sharp losses seen last week.

In data, job openings hit a record by surging above seven million in August, according to the U.S. Labor Department.

Prices for the benchmark for the 10-year U.S.Treasury fell back, boosting yields to 3.16% from Monday’s 3.15%. Treasury prices and yields move in opposite directions.

Oil prices sank three cents at $71.75U.S. a barrel.

Gold prices acquired $1.10 to $1,231.40U.S. an ounce.

This article provided by NewsEdge.