Tech and health stocks lead Wall Street indices to the upside – Press Telegram

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By DAMIAN J. TROISE and ALEX VEIGA

Healthcare and tech companies led a large rally for stocks on Wall Street on Tuesday as investors greeted another set of encouraging reports on corporate earnings.

The S&P 500 rose 0.7%, bringing the benchmark to its fifth consecutive gain. The Dow Jones Industrial Average rose 0.6% and the tech-rich Nasdaq rose 0.7%.

Among the winners in the tech sector were Apple, which rose 1.5%, and software maker Adobe, which added 2.1%. Johnson and Johnson, the world’s largest maker of healthcare products, rose 2.3% after raising its profit guidance for the year following strong third-quarter earnings reports.

“We were starting to generate more profit for the third quarter, and so far so good,” said Tom Hainlin, national investment strategist at US Bank Wealth Management. “So far the results are coming and we have not had a significant downward revision to the outlook.”

The S&P 500 gained 33.17 points to 4,519.63. The index is now less than 0.4% of the all-time high it reached on September 2. The Dow Jones gained 198.70 points to 34,457.31. The Nasdaq gained 107.28 points to 15,129.09.

Small business shares also rose. The Russell 2000 Index gained 8.07 points, or 0.4%, to 2,275.91.

The broad gains in equities follow a mixed start to the week as investors continue to monitor corporate earnings for clues as to how companies will perform throughout the year as they face rising inflation, delays in the global supply chain and slowing economic recovery.

“There was some nervousness as we started to see supply chain disruptions,” said JJ Kinahan, chief strategist at TD Ameritrade. “But, the overall picture is still quite positive.”

These supply chain issues are going to have different impacts on businesses and industries, he said, including how they absorb costs and whether they raise prices. Procter & Gamble fell 1.2% after saying it would raise prices due to rising raw material and freight costs.

So far, however, rising oil prices and other costs have not significantly reduced corporate profit margins, Hainlin said.

In total, analysts polled by FactSet are now forecasting 30% profit growth for the S&P 500, up from 23% in June.

The first exchange-traded fund to track Bitcoin futures was up 4.7% when it debuted on Tuesday. Trading has been very intense for the ProShares Bitcoin Strategy ETF, reflecting the growing interest in cryptocurrencies.

The ProShares Bitcoin Strategy ETF offers a potentially easier way for some investors to enter the fast-growing crypto world, although they invest in futures contracts for Bitcoin rather than the currency itself. The price of Bitcoin rose 4.5%, according to CoinDesk. It is around 1.2% below its all-time high of $ 64,888.99 per coin.

Bond yields have increased. The yield on the 10-year Treasury bill climbed to 1.64% from 1.58% on Monday night.

Energy stocks gained ground as oil prices rose 0.6%. Exxon Mobil rose 1.5%. Crude oil prices in the United States rose 73% for the year, while natural gas prices rose about 81%. Prices have risen as the global economic recovery stimulates demand and raises concerns about a global energy crisis.

Insurance company Travelers rose 1.6% after significantly beating Wall Street’s third-quarter profit forecast. Other big companies, including streaming entertainment giant Netflix and United Airlines, will report their results after the market closes.

Several key airline revenues this week will also give investors a clearer picture of the impact of an increase in COVID-19 cases over the summer. American Airlines and Southwest Airlines will release their results on Thursday.

Outside of profits, the Commerce Department reported that US homebuilding fell 1.6% in September as builders continued to be caught up in supply chain bottlenecks. Shares of homebuilders were weaker. Beazer Homes fell 2.7% and Hovnanian Enterprises fell 3%.

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