Dow Jumps 400+ on Earnings Optimism - InvestingChannel

Dow Jumps 400+ on Earnings Optimism

Stocks rallied Tuesday, recovering losses incurred in the previous session, as traders bet on strong corporate earnings reports.

The Dow Jones Industrials skyrocketed 474.76 points, or 1.5%, to 31,547.37.

The S&P 500 spiked 71.89 points, or 1.9%, to 3,902.70.

The NASDAQ Composite leaped 249.68 points, or 2.2%, to 11,608.73.

All sectors in the S&P 500 were higher Tuesday. Bank stocks outperformed with shares of Goldman Sachs rising more than 4% following a strong earnings report Monday. Bank of America climbed nearly 3%, and Wells Fargo gained about 3%.

Google was up more than 2% following a 20-for-1 stock split that took place Monday.

Hasbro shares climbed 2% after the toymaker’s earnings per share beat analyst expectations, though its revenue for the previous quarter came in a tad below expectations, according to consensus estimates from Refinitiv.

Shares of Netflix popped 3% ahead of the streaming company’s earnings report scheduled for after the close. Later in the week, Tesla, United Airlines, American Airlines, Snap, Twitter and Verizon are among those scheduled to report.

Meanwhile, Johnson & Johnson shares ticked lower after the pharmaceutical giant cut its full-year revenue and profit guidance, although the company reported better-than-expected top and bottom line results.

IBM shares fell more than 6%, after the tech company lowered its forecast for cash flow, even while reporting results that beat Wall Street’s earnings and revenue estimates.

So far, roughly 9% of S&P 500 companies have reported calendar second-quarter earnings. Of those, about two-thirds have beaten analyst expectations.

Treasury prices fell backward, raising yields to 3% from Monday’s 2.997%. Treasury prices and yields move in opposite directions.

Oil prices eked up 29 cents to $102.89 U.S. a barrel.

Gold prices forged ahead 10 cents to $1,710.30 U.S. an ounce.

Dow Jumps 400+ on Earnings Optimism

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