U.S. Stocks Move Mostly Higher On Upbeat Earnings News
Following the mixed performance seen during Monday’s session, stocks moved mostly higher over the course of the trading day on Tuesday. The major averages all moved to the upside, with the Dow and the S&P 500 bouncing off their lowest closing levels in over four months.
The major averages all finished the day firmly in positive territory. The Nasdaq advanced 121.55 points or 0.9 percent to 13,139.87, the S&P 500 climbed 30.63 points or 0.7 percent to 4,247.68 and the Dow rose 204.97 points or 0.6 percent to33,141.38.
The strength on Wall Street partly reflected a positive reaction to the latest batch of earnings news, as a number of big-name companies reported better than expected quarterly results.
Shares of General Electric (GE) moved sharply higher after the conglomerate reported third quarter results that exceeded analyst estimates and raised its full-year guidance.
Diversified manufacturer 3M Co. (MMM) also saw notable strength after reporting better than expected third quarter results and boosting its full-year profit forecast.
Shares of Coca-Cola (KO) also showed a strong move to the upside after the beverage giant reported third quarter results that beat expectations and raised its full-year forecast.
Meanwhile, tech giants Alphabet (GOOGL) and Microsoft (MSFT) are among the companies due to report their quarterly results after the close of trading.
Sector News
Computer hardware stocks saw substantial strength on the day, with the NYSE Arca Computer Hardware Index surging by 3.1 percent after ending the previous session at its lowest closing level in almost five months.
Computer peripherals maker Logitech (LOGI) led the sector higher after reporting better than expected fiscal second quarter results and raising its full-year guidance.
Significant strength was also visible among steel stocks, as reflected by the 2.6 percent jump by the NYSE Arca Steel Index. The index is bouncing off a four-month closing low.
Telecom stocks also turned in a strong performance, driving the NYSE Arca North American Telecom Index up by 2.2 percent.
Utilities, networking and semiconductor stocks also saw notable strength, while energy stocks came under pressure amid a steep drop by the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index edged up by 0.2 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.
The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 Index crept up by 0.2 percent, the German DAX Index and the French CAC 40 Index climbed 0.5 percent and 0.6 percent, respectively.
In the bond market, treasuries turned in a lackluster performance before ending the session little changed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point at 4.840 percent.
Looking Ahead
Reaction to the latest earnings news may continue to drive trading on Wednesday, with the results from Alphabet and Microsoft likely to be in the spotlight after the close of today’s trading.
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