The major averages rose for the first time in four days on Wednesday as several strong earnings reports lifted sentiment on Wall Street.
The Dow Jones Industrials nicked ahead 1.02 points to 35,369.49, helped by a 4% jump in Procter & Gamble’s stock
The S&P 500 recovered 12.42 points to 4,589.53,
The NASDAQ Composite came out of the abyss and gained 108.82 points to 14,615.71.
Stocks were boosted by a slew of strong corporate earnings results. Bank of America beat Wall Street estimates as it released pandemic-related loan loss reserves. Shares rebounded 4%, a day after sliding 3.4%.
Morgan Stanley saw its stock rise 3.2% after the bank’s fourth-quarter profit topped estimates. It also experienced a 13% jump in equities trading revenue.
Procter & Gamble shares popped 4% after the consumer giant reported fiscal second-quarter earnings and revenue that topped Wall Street’s expectations. The company raised its outlook for sales growth.
Earnings season is picking up on Wall Street and so far the majority of companies have surpassed analyst expectations. Of the 44 S&P 500 companies that have reported quarterly results, nearly 73% have topped Wall Street’s expectations.
On the negative side, home builders also were broadly lower following after KeyBanc downgraded the group on concerns over looming interest rate hikes that will drive up borrowing costs. KB Home lost 1.7%, Lennar fell 1.6% and D.R. Horton fell 1.7%.
Shares of Sony tumbled 3.8% the day after Microsoft said it is buying video game publisher Activision Blizzard for nearly $69 billion. Sony’s PlayStation competes with Microsoft’s Xbox consoles. The drop in Sony’s stock comes after shares slid 7.2% on Tuesday.
Prices for 10-year Treasurys gained strength, lowering yields to 1.85% from Tuesday’s 1.87%. Treasury prices and yields move in opposite directions.
Oil prices added $1.26 to $86.69 U.S. a barrel.
Gold prices jumped $25.20 to $1,837.60 U.S. an ounce.