Market Snapshot: S&P 500, Nasdaq book 3rd straight day of gains on better corporate earnings than feared

by | Jul 21, 2022 | Stock Market

U.S. stocks closed higher Thursday with all three benchmarks touching their highest levels in six weeks, as weak economic data was offset by healthy second-quarter earnings from Tesla Inc. and others. How stocks are trading
Dow Jones Industrial Average
DJIA,
+0.51%
rose 162.06 points, or 0.5%, to 32,036.90.

S&P 500 SPX gains 39.05 points, or 1.0%, to 3,998.95.

Nasdaq Composite
COMP,
+1.36%
traded 161.96 points, or 1.4%, higher at 12,059.61.

Russell 2000
RUT,
+0.48%
index rose 8.71 points, or 0.5%, to 1,836.65.

On Wednesday, the Dow Jones Industrial Average rose 48 points, or 0.15%, to 31875, the S&P 500 increased 0.5%, to 3960, and the Nasdaq Composite gained 1.5% to 11898. The Russell 2000 index has gained 89.53 points or 5.15% over the last two trading days, its largest two-session percentage gain since January 7, 2021.

What’s driving markets Stronger-than-expected second quarter corporate earnings have helped stocks to recover to their best levels in more than a month this week, even as economic data suggest the U.S. economy is slowing. On the corporate earnings front, shares of Danaher Corporation
DHR,
+9.07%,
Philip Morris International
PM,
+4.19%,
and Tesla
TSLA,
+9.78%
all traded higher as Wall Street cheered their second-quarter results. Read: Here’s the incredibly strong signal for stocks that is coming from the corporate bond market “It’s an earnings rally, which I think will continue through the remainder of the summer,” said Peter Cardillo, chief market economist at Spartan Capital, by phone. Next week’s raft of coming earnings reports from large companies should help investors “come to some conclusions” about the overall health of companies, he said, including how businesses have been coping with high inflation, tighter monetary policy and the threat of a recession. About 18% of S&P 500 index companies have reported earnings for the second quarter so far and of those, about 71% have beaten expectations, according to FactSet. The outlook for Federal Reserve policy is still of paramount importance for markets though, said Matthew Tuttle, CEO of Tuttle Capital Ma …

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