S&P 500, Nasdaq rose higher after positive earnings reports

A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, USA, January 18, 2022. REUTERS / Brendan McDermid

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  • Nasdaq falls just over 10% from record highs
  • BofA, Morgan Stanley concludes bank revenues in a positive way
  • Procter & Gamble increases after raising the outlook
  • Dow down 0.1%, S&P up 0.08%, Nasdaq up 0.22%

January 19 (Reuters) – The S&P 500 and Nasdaq rose in a choppy trade on Wednesday after quarterly results from a variety of companies, while technology stocks stabilized and US government interest rates withdrew from milestones.

The technology-heavy Nasdaq recovered after moving more than 10% below the record high on November 19 earlier in the session. A correction is confirmed when an index closes 10% or more below the record final level. Dow had a small loss.

The results from Morgan Stanley (MS.N) and Bank of America (BAC.N) were well received by investors, as were reports from UnitedHealth (UNH.N) and Procter & Gamble (PG.N) as the fourth quarter earnings season picks up. up.

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Equities have had a difficult start in 2022, as a rapid rise in government interest rates due to concerns that the Federal Reserve will become aggressive in controlling inflation has particularly affected technology and growth stocks. The S&P 500 benchmark index is down around 4% so far this year.

“I think it’s more of a transition day, more of a consolidation after the sales pressure, and low confidence until we get further into the earnings season and then hear from the Fed,” said Keith Lerner, chief investment officer at Truist Advisory Services.

The Dow Jones Industrial Average (.DJI) fell 36.48 points, or 0.1%, to 35,331.99, the S&P 500 (.SPX) gained 3.82 points, or 0.08%, to 4,580.93 and Nasdaq Composite (.1IXIC.62 points, .1IXIC.62) 0.22% to 14,538.51.

The heavyweight technology sector (.SPLRCT) rose 0.2%, while the financial sector (.SPSY) fell 0.9%, most among the S&P 500 sectors.

Shares had fallen on Tuesday, with Nasdaq falling 2.6%, following weak results from Goldman Sachs and a rise in government interest rates. US government bond yields fell after reaching new two-year highs earlier on Wednesday.

Investors are looking forward to next week’s Fed policy meeting to get more clarity on central banks’ plans to curb inflation. Data last week showed that US consumer prices rose sharply in December, culminating in the largest annual increase in inflation in almost four decades.

In the company’s news, Procter & Gamble shares rose 3.6% after the consumer goods company increased its annual sales forecast. read more

Bank of America Corp. reported a better-than-expected jump in quarterly earnings of 30%, while Morgan Stanley also reported fourth-quarter profits beating market expectations following uneven results from other banks. Bank of America shares rose 0.8%, while Morgan Stanley shares rose 2.4%. read more

“JPMorgan, Goldman Sachs set the standard very low for Morgan Stanley and Bank of America. Although the reports were not fantastic, they were better than the lower expectations,” said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas.

The UnitedHealth share rose 0.8% as the health insurance company maintained its 2022 earnings forecast. read more

Falling issues were more than advancing on the NYSE with a ratio of 1.14 to 1; on the Nasdaq favored a ratio of 1.24 to 1 declines.

The S&P 500 posted 12 new 52-week highs and seven new lows; The Nasdaq Composite recorded 18 new highs and 538 new lows.

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Reporting by Lewis Krauskopf in New York, Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Edited by Maju Samuel and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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