Wall Street’s main indices jumped on Thursday as upbeat results and forecasts from IBM, AT&T and Dow Inc brought back enthusiasm in markets that were briefly hit by political turmoil in the United Kingdom.
Shares of IBM Corp rose 4.3% on Wednesday after the IT services company beat quarterly earnings estimates and said it expects to exceed its full-year revenue growth target.
Fellow blue-chip stock Verizon Communications Inc. rose 1.6% after peer AT&T Inc. raised its annual profit forecast to 8.2%.
Both companies edged up 1.8% in the S&P 500 communications services sector index to gain gains in 11 key sectors on the benchmark index.
The Dow Inc. rose 3.3% after the chemicals giant beat third-quarter profit estimates.
It comes after upbeat results from Banks, Netflix Inc., Procter & Gamble Co. and Travelers Companies Inc. told analysts to raise expectations for third-quarter profit growth for S&P 500 companies to 3.1% from a 2.8% increase in the week. inspired.
However, that estimate is still far lower than the 11.1% growth that was projected in early July.
“It’s a change from being a high valuation growth “Market to a value market,” said David Russell, vice president of market intelligence at TradeStation.
“There’s a huge amount of negativity because when we look at a lot of these companies that long ago hit several decade lows, they’re now posting results that beat estimates.”
Tesla Inc., however, dropped 4.9% as the electric-automaker flagged continued logistics challenges, with fourth-quarter deliveries down 50%.
Key indices on Wall Street were weighed down by concerns about the repercussions of aggressive interest rate hikes on corporate profits amid rising Treasury yields and no real signs of slowing US inflation.
Data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to a tight labor market, while another reading showed the Federal Reserve Bank of Philadelphia’s District of Philadelphia reported factory activity. Re-contracted in October.
The US central bank is likely to deliver its fourth straight 75 basis-point increase at its November meeting, with pricing in some full percentage point increases as well.
At 12:05 p.m. ET, the Dow Jones Industrial Average was up 177.24 points, or 0.58%, at 30,601.05, while the S&P 500 was up 11.04 points, or 0.30%, at 3,706.20. The Nasdaq Composite was up 86.19 points, or 0.81%, at 10,766.69.
US stocks were briefly under pressure after the UK’s Liz Truss announced her resignation as prime minister just six weeks into the job, brought on by an economic event that sent shock waves through global financial markets. and divided his Conservative Party.
Advancing issues declined from a 1.53-to-1 ratio on the NYSE and 1.79-to-1 on the Nasdaq.
The S&P index recorded three new 52-week highs and 12 new lows, while the Nasdaq recorded 33 new highs and 127 new lows.
This story has been published without modification in text from a wire agency feed.
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