Wall Street’s main indexes rose on Tuesday as earnings season moved ahead of big banks, with investors keeping a close eye on the impact of higher inflation on demand, even as a stronger dollar gains.
A rising US currency prompted pharma major Johnson & Johnson to trim its annual adjusted profit view and IBM Corp to warn of a nearly $3.5 billion hit.
IBM shares were down 7%, while J&J rose 0.3% as it beat quarterly earnings expectations.
“The strong dollar becomes an issue and it’s going to pass this earnings season as we will be more concerned if demand drops,” said Art Hogan, B’s chief market strategist. Riley.
Shares of Apple attempted a comeback, gaining 0.2% after falling 2% in the previous session, when a report said the company planned to slow hiring and growth over the next year.
Other high-growth stocks such as Tesla Inc., Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc. were also trading higher.
According to Refinitiv data, in the second-quarter earnings season, analysts expect the year-over-year S&P 500 profit to rise 6%, down from the 6.8% estimate at the beginning of the quarter.
Spiral inflation had initially led markets to hike interest rates by 100 basis points, until some policymakers indicated a 75 basis point increase at a Federal Reserve meeting later this month.
At 9:45 a.m. ET the Dow Jones Industrial Average was up 240.23 points, or 0.77%, at 31,312.84, the S&P 500 was up 39.96 points, or 1.04%, at 3,870.81, and the Nasdaq Composite was up 111.99 points, or 0.99%. at 11,472.04.
Of all the 11 major S&P 500 sector indexes, at least six gained, with each gaining more than 1%.
The Boeing Company added 2.6% to plans to buy 66 more Boeing 737 MAX jets by private equity firm 777 Partners.
Hasbro Inc. beat market estimates for quarterly gains, sending shares of the toymaker up 0.7%.
Shares of Netflix outperformed its results by 0.9% after the market closed.
Meanwhile, the yield on 10-year Treasury notes traded in a narrow range of 2.95% and 3.01%, making bets for riskier assets.
The number of issues issued declined by a 7.74-to-1 ratio on the NYSE and a 4.16-to-1 ratio on the Nasdaq.
The S&P index recorded a new 52-week high and 30 new lows, while the Nasdaq recorded 11 new highs and 12 new lows.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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