Wall Street rises on earnings hopes, Netflix soars
by Admin |
US stock indexes rallied on Tuesday on broad-based gains while Netflix and UnitedHealth earnings impressed investors and boosted optimism about the US corporate reporting season.
Shares in Netflix , the first of Wall Street's leading momentum stocks to report earnings, rose 9 percent to close at a record high after the video-streaming pioneer smashed analysts' quarterly subscriber estimates.
"The overall picture is a positive one when it comes to earnings across sectors. There's a nice little turbo boost being given by the tax reform legislation," said Kristina Hooper, chief global market strategist at Invesco, in New York.
"Investors seem to be ignoring that which is not positive," Hooper said after White House Economic Adviser Larry Kudlow said the United States was not convinced of the merits of joining the TPP. The market had gained the previous week when it appeared that US President Donald Trump was keen on TPP.
"It's easier for markets to focus on that which is positive and tangible rather than try to assess the potential outcome of protectionism," she said.
The Dow Jones Industrial Average rose 213.59 points, or 0.87 percent, to 24,786.63, the S&P 500 gained 28.55 points, or 1.07 percent, to 2,706.39 and the Nasdaq Composite added 124.81 points, or 1.74 percent, to 7,281.10.
Along with the housing data, Invesco's Hooper said industrial production data was good sign for the economy. Industrial production registered a solid increase in last month as cold weather boosted utilities output and production at mines surged.
The financial index was the sole S&P sector in the red, ending the day down 0.07 percent as bank stocks fell.
Goldman Sachs fell 1.6 percent as investors reacted to a pause in share buybacks and rising expenses, as well as indications it might be open to an acquisition. Goldman's profit, however, beat Wall Street's expectations.