US STOCKS-Wall Street gains after strong start to earnings season

  • Reuters
  • Stock Market News
US STOCKS-Wall Street gains after strong start to earnings season
Credit: © Reuters.

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* JPMorgan hits record high, lifts bank stocks

* UnitedHealth (NYSE: UNH ) eyes best day in eight years

* JNJ set for biggest one-day percentage gain since Jan

* Brexit deal hopes brighten sentiment

* Indexes up: Dow 1%, S&P 1.14%, Nasdaq 1.30% (Updates to early afternoon)

By Arjun Panchadar and Sagarika Jaisinghani

Oct 15 (Reuters) - Wall Street rose 1% on Tuesday as strong earnings from JPMorgan, UnitedHealth and Johnson & Johnson allayed concerns about the fallout from a prolonged U.S.-China trade war on Corporate America.

All three major stock indexes hit three-week highs after quarterly results from some of the largest U.S. banks showed strong consumer confidence in the face of recession fears that had led businesses to pull back on spending. that Britain and the European Union would reach a deal in time for a leaders' summit this week also brightened sentiment. of JPMorgan Chase (NYSE: JPM ) & Co JPM.N hit a record high, and lifted the S&P 500 banking sector .SPXBK to its highest level in a year. Group Inc UNH.N was set to post its best day in eight years, while Johnson & Johnson JNJ.N shares eyed their biggest one-day percentage gain since January after both companies raised their profit forecasts. stocks were among the top boosts to the S&P 500 and Dow Jones indexes, and lifted the S&P healthcare sector .SPXHC to a three-week high. Eight of the 11 major S&P sectors were higher.

"If this earnings season turns out to be better than expected, we can end up with a scenario that there won't be pressure on the labor market and that keeps us away from a recession," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.

Analysts have forecast the worst quarterly profit performance in about three years for S&P 500 companies, with industrials among those most at risk from the trade dispute. an interactive graphic, click link:

Wall Street has been rattled over the past 15 months by tit-for-tat tariffs by the United States and China, with the impact already reflecting in the domestic economy. After solid increases in the first quarter, gains in the three main U.S. stock indexes have tapered off.

At 1:07 p.m. ET, the Dow Jones Industrial Average .DJI was up 266.87 points, or 1.00%, at 27,054.23. The S&P 500 .SPX was up 33.80 points, or 1.14%, at 2,999.95 and the Nasdaq Composite .IXIC was up 104.24 points, or 1.30%, at 8,152.89.

Shares of mobile game developer Glu Mobile GLUU.O jumped 10.7% as the company is set to replace SolarEdge Technologies SEDG.O in the S&P SmallCap 600. Inc BLK.N , the world's biggest asset manager, rose 2.7% after its quarterly profit beat estimates. of Roku Inc ROKU.O surged 9.3% after the television streaming platform said Apple Inc's AAPL.O TV app was available on its platform and Apple TV+ would be available after it was launched. of America BAC.N , which is due to report results on Wednesday, jumped 2.9% after a report that Warren Buffett was seeking leeway from the Federal Reserve to increase its stake in the bank beyond 10%. issues outnumbered decliners by a 2.47-to-1 ratio on the NYSE and by a 2.92-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and no new lows, while the Nasdaq recorded 35 new highs and 56 new lows.


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