U.S. Stocks Jump a Second Day on Strong Earnings Reports
By Liz Moyer
Investing.com -- U.S. stocks rose on Tuesday after strong earnings from Goldman Sachs and an activist stake in Salesforce set a positive tone for the trading session.
At 9:38 ET (13:38 GMT), the Dow Jones Industrial Average rose 617 points, or 2%, while the S&P 500 rose 2.3% and the NASDAQ Composite rose 2.6%.
Investors have been worrying about how the Federal Reserve’s aggressive interest rate hikes would affect revenue and profit at the biggest U.S. companies, with more than 60 S&P companies reporting this week.
Goldman Sachs Group Inc (NYSE: GS ) rose 4.5% after reporting a better-than-expected quarterly profit on a boost from net interest income, as other banks have also reported. That helped ease the lackluster quarter for investment banking.
Shares of Salesforce Inc (NYSE: CRM ) jumped 6% after Starboard’s Jeff Smith told CNBC his firm had taken a significant stake in the enterprise software maker, without being specific.
Johnson & Johnson (NYSE: JNJ ) also beat expectations for third-quarter revenue and profit, with a boost from demand for its cancer treatment. Its shares were down 1.7%.
Analysts entered this earnings season on a cautious footing. Wall Street is expecting the S&P to post a 3% gain in profit from last year, which is lower than previous expectations.
Many analysts are awaiting earnings from Netflix Inc (NASDAQ: NFLX ) after tonight’s closing bell. Its shares were up ahead of that report. United Airlines Holdings Inc (NASDAQ: UAL ) also reports later today.
Oil fell. Crude Oil WTI Futures fell 1.5% to $83.31 a barrel, while Brent Oil Futures crude fell 1%, to $90.69 a barrel. Gold Futures was down 0.2%, to $1660.
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