Wall Street rallies with gains in full swing

Wall Street rallies with gains in full swing

A Wall Street sign in front of the New York Stock Exchange in New York City, New York, U.S. October 2, 2020. REUTERS/Carlo Allegri

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  • Boeing raises deal to sell jets to 777 Partners
  • Johnson & Johnson and IBM fall on dollar impact warning
  • Hasbro and Halliburton rise after winning hit
  • Indices up: S&P 2.5%, Dow 500 2.1%, Nasdaq 2.9%

July 19 (Reuters) – Major US stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, giving some reassurance to investors worried about higher inflation hurting corporate bottom lines.

Toy company Hasbro Inc (HAS.O) beat market estimates for quarterly earnings, sending the toymaker’s shares up 0.8%. Continue reading

Halliburton’s shares rose 1.2% after the oilfield services company posted a 41% rise in adjusted quarterly profit. Continue reading

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“Returns have been better than lowered expectations,” said Paul Kim, CEO of Simplify Asset Management in New York.

“So we don’t see the impact of tighter monetary policy and inflation affecting earnings as much as feared.”

Johnson & Johnson shares fell 1.6%, reversing earlier gains. The healthcare giant reported earnings and sales that beat expectations, but lowered its earnings outlook for the year on a sharply strengthening US currency. Continue reading

A strong dollar also weighed on shares in IT hardware and services company IBM Corp., which beat quarterly sales expectations on Monday but warned the hit from forex for the year could be about $3.5 billion.

IBM stock fell 6.5%.

The US dollar hovered just above a one-week low on Tuesday, marking its third straight day of declines as markets reduced the likelihood of a full percentage point hike by the US Federal Reserve this month.

Rising inflation initially had markets pricing in a 100 basis point rate hike at the upcoming Fed meeting later this month, until some policymakers signaled a 75 basis point hike. Continue reading

Apple Inc (AAPL.O) boosted major indices, up 2.5%, erasing nearly all of its falls from the previous session, as a report said the company plans to boost hiring and spending growth in the next year to slow down. Continue reading

Other high growth stocks such as Tesla Inc (TSLA.O), Microsoft Corp (MSFT.O), Meta Platforms Inc (META.O) and Amazon.com Inc (AMZN.O) also traded higher.

This earnings season, according to Refinitiv data, analysts expect the S&P 500’s headline earnings to rise 5.8% year over year, compared to the 6.8% estimate at the start of the quarter.

As of 1:56 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 644.72 points, or 2.07%, to 31,717.33, the S&P 500 (.SPX) was up 93.71 points, or 2.45% 3,924.56 and the Nasdaq Composite (.IXIC) added 322.62 points, or 2.84%, to 11,682.67.

All 11 major sector indices in the S&P 500 rose, with at least eight of them gaining more than 2% each.

Boeing Co (BA.N) rose 4.8% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 MAX jets. Continue reading

Netflix Inc (NFLX.O) shares are up 4.6% from their after-close results.

Upward issues dominated on the NYSE by a 5.43 to 1 ratio, while on the Nasdaq a 3.97 to 1 ratio favored risers.

The S&P 500 posted a new 52-week high and 30 new lows; the Nasdaq Composite posted 27 new highs and 39 new lows.

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Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Edited by Arun Koyyur, Shounak Dasgupta and Deepa Babington

Our standards: The Thomson Reuters Trust Principles.

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