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Wall Street rises on upbeat earnings, recovery optimism

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Wall Street’s main indexes rose on Wednesday as upbeat quarterly results from companies including Verizon and Coca-Cola revived optimism about the health of American companies.

Coca-Cola Co rose 1.9% after raising its full-year sales forecast, while Verizon Communications Inc added 1.1% after beating estimates for quarterly results.

“Everybody knows this will be the biggest year-over-year earnings growth rate for the second quarter,” said Tom Martin, senior portfolio manager at GLOBALT Investments.

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Wall Street ended sharply higher on Tuesday, recovering from a multi-day bearish streak, as a string of upbeat earnings reports and revived economic optimism spurred a risk-on rally.

“There is no substitute (TINA) and fear of missing out (FOMO) is driving the market higher. Every time the market goes down, people think it’s an opportunity to put more money into work,” Martin said.

Ten of the S&P’s 11 major sectors rallied in early trade, with economically sensitive industries, materials, finance and energy leading the way.

The rate-sensitive banking sub-index added 1.9%, tracking Treasury yields.

Market participants are also closely watching second-quarter earnings season to justify the sky-high valuations the market trades right now.

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So far, the benchmark S&P 500 is up 15.8% on optimism about a stronger recovery due to vaccinations and accommodative monetary policy.

United Airlines rose 4.2 percent after its revenue quadrupled from a year ago and topped estimates with a strong recovery in domestic travel.

Rivals American Airlines and Southwest Airlines added more than 3.5% each ahead of their results on Thursday.

However, weak subscriber growth forecasts by Netflix Inc, which benefited from the accommodation environment last year, pushed its shares down 3.6%.

At 10:07 a.m. ET, the Dow Jones Industrial Average was up 267.57 points, or 0.78%, to 34,779.56, the S&P 500 was up 25.89 points, or 0.60%, at 4,348.95 and the Nasdaq Composite rose 59.54 points, or 0.41%, at 14,558.42.

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Chipotle Mexican Grill Inc jumped 9.2% as brokerages raised their price targets for the burrito chain’s stock after it beat estimates for comparable quarterly earnings and sales. .

The Interpublic Group of Companies jumped 13.4% to the top of the S&P 500 index after the advertising agency posted strong second-quarter earnings.

Johnson & Johnson rose 0.1% after the drugmaker forecast strong earnings in 2021, while Harley-Davidson Inc fell 3.6% even as the company reported better-than-expected quarterly profit. .

More stocks rose than fell by a ratio of 3.88 to 1 on the NYSE and 3.20 to 1 on the Nasdaq.

The S&P index recorded 31 new 52-week highs and no new lows, while the Nasdaq recorded 31 new highs and 19 new lows.

(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)

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https://financialpost.com/pmn/business-pmn/wall-street-rises-on-upbeat-earnings-recovery-optimism | Wall Street rises on upbeat earnings, recovery optimism

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