Wall St. grinds high on solid healthcare earnings; supply crisis persists

Abbott Laboratories rose 4.2% after raising its full-year profit forecast on a rebound in COVID-19 test sales.

Anthem Inc. added 5.7% and Biogen Inc. added 2%, when both healthcare companies raised their full-year profit forecasts.

Eight of the 11 major S&P 500 sector indexes were trading higher led by healthcare stocks.

Analysts expect S&P 500 earnings to rise 33% from a year ago, according to Refinitiv data, while keeping a close eye on the growth outlook for companies facing rising costs, labor shortages and supply chain disruptions .

“Investors are digesting earnings and the impact of supply chain disruptions on Corporate America,” said Fiona Cincotta, senior financial markets analyst at Citi Index.

“The latest release has helped deflect fears of a stagflationary slowdown, but has drawn attention to supply chain constraints that are set to impact third-quarter earnings.”

Netflix’s global sensation “Squid Game” helped entice more subscribers than expected, with the world’s largest streaming service saying it predicts a packed lineup will further boost signups by the end of the year.

However, its shares fell 2.3% after hitting record highs earlier this month and gaining 18.2 per cent so far this year.

Other mega cap technology and communications names were mixed in premarket trading. Facebook, up 0.2%, is planning to rebrand itself with the new name, which focuses on the metaverse, according to The Verge.

Tesla Inc. reported a 0.6% drop in its quarterly results after the market closed, with investors awaiting details of its performance in China.

“People are waiting to see what the big tech companies are going to report,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. responding.” .

In quarterly reports, Verizon Communications Inc. rose 2.1% as it added more postpaid phone customers than expected in the third quarter, while oilfield firm Baker Hughes Company slipped 4% on downbeat profits.

The benchmark S&P 500 index is down 0.3% from its early September record close, while the Dow Jones Industrials average is down 0.3% from its all-time high in mid-August.

At 9:57 a.m., the Dow Jones Industrial Average was up 83.61 points, or 0.24%, at 35,540.92, the S&P 500 was up 10.73 points, or 0.24%, at 4,530.36, and the Nasdaq Composite was up 9.87 points, or 0.07%. , at 15,138.96.

Ford Motor surged 2.3% after Credit Suisse upgraded US automaker’s stock to ‘outperform’ on the EV transition.

Advancing issues declined by a 1.46-to-1 ratio on the NYSE. Issues decline in the number of advances to a 1.01-to-1 ratio on the Nasdaq.

The S&P index recorded 38 new 52-week highs and no new lows, while the Nasdaq recorded 48 new highs and 12 new lows.