Market Snapshot: U.S. stocks finish higher for 2nd day in a row as earnings season starts strong

by | Oct 18, 2022 | Stock Market

U.S. stocks finished higher for the second day in a row on Tuesday as investors celebrated another batch of robust corporate earnings reports.How stocks performed
The Dow Jones Industrial Average
DJIA,
+1.12%
finished 337.98 points, or 1.1%, higher at 30,523.80 after rising as much as 652 points at its session high.

The S&P 500
SPX,
+1.14%
closed 42.03 points, or 1.1%, higher at 3,719.98.

The Nasdaq Composite
COMP,
+1.48%
finished up 96.60 points, or 0.9%, at 10,772.40.

Major U.S. indexes pared post-open gains, but still finished sharply higher on Tuesday. One day earlier, the Dow rose 551 points, or 1.9%, while the S&P 500 jumped 2.7% and the Nasdaq Composite advanced 3.4%. Altogether, the S&P 500 has risen 4% from 3,577.03, its lowest closing level in two years, which it reached on Oct. 12.

What drove markets Wall Street clinched a second day of gains as investors turned their attention to corporate results as the third-quarter earnings season begins in earnest this week. “Corporate earnings are stealing the show and overshadowing recession concerns. Those same recession fears had meant that the bar was low heading into earnings, raising the likelihood of beating estimates,” said Fiona Cincotta, senior financial markets analyst at City Index, in a note. So far, 46 S&P 500 companies have reported third-quarter results. Of these companies, 70% have beaten profit estimates, and 63% have beaten revenue estimates, according to FactSet data. Read: 100% probability of U.S. recession in coming year, according to Bloomberg Economics forecast model Shares of Dow component Goldman Sachs Group Inc.
GS,
+2.33%
rose after the financial services giant delivering well-received earnings reports Tuesday. But stocks pared their gains heading into the afternoon as Treasury yields wavered and geopolitical risk reemerged, with Secretary of State Antony Blinken accusing China of accelerating plans to seize Taiwan. “I think stocks are a little oversold, but when you see the 10-year bond sell off and yields start to pop above 4% stocks …

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