Wall Street Gains on Strong Earnings, Tech Resurgence


“Earnings continue to be better than expected and you have many of the geopolitical concerns like trade wars put on the back burner temporarily. And the commentary has been good,” said Channing Smith, managing principal at Jackson Hole Capital Partners in Tulsa, Oklahoma.

The S. & P. 500 Index

Position of the S. & P. 500 index at 1-minute intervals on Thursday.









“It’s a tug-of-war market where you’ve concerns about the 10-year (Treasury bond) yield rising and inflation expectations rising and geopolitical concerns and the tariff concerns against the best earnings we’ve seen in years,” said Smith.

7-Year Treasury Notes

High yield at auction.









The yield on U.S. 10-year Treasuries closed below the 3 percent level as buyers emerged following a sell-off fueled by worries over growing U.S. debt issuance and rising costs.

The Dow Jones Industrial Average rose 238.51 points, or 0.99 percent, to 24,322.34, the S&P 500 gained 27.54 points, or 1.04 percent, to 2,666.94 and the Nasdaq Composite added 114.94 points, or 1.64 percent, to 7,118.68.

So far, 45 percent of S&P 500 companies have reported first-quarter earnings, with 79.7 percent beating consensus estimates. Analysts see 23.1 percent earnings growth for the quarter, based on a blend of actual and estimated results.

Amazon.com Inc shares jumped more than 6 percent in after-market trading after the online retailer reported a 43 percent surge in first-quarter revenue.

General Motors Co edged up 0.4 percent after the automaker reported a production drop of its high-margin pickup trucks, despite posting higher-than-expected profit.

United Parcel Service Inc shares rose 4.3 percent after the world’s largest package delivery company defied cost and weather headwinds to post higher first-quarter profit and strong volumes.

Visa Inc also helped lift the tech sector, advancing 4.8 percent following the payments network’s better-than-expected profit and earnings forecast raise.

AT&T Inc shares slumped 6.0 percent. It reported a loss of subscribers from its pay TV business.

Union Pacific Corp shares fell 2.9 percent. The No. 1 U.S. railroad operator cautioned on a key operating metric, helping send the Dow Jones Transportation Average down 0.9 percent.

In economic news, new orders for durable goods unexpectedly dropped in March as demand for machinery registered its biggest decline in more than two years, according to the Commerce Department. However, the Labor Department reported initial claims for unemployment fell to their lowest level since 1969, suggesting the labor market is at or near full employment.

Advancing issues outnumbered declining ones on the NYSE by a 2.26-to-1 ratio; on Nasdaq, a 2.06-to-1 ratio favored advancers.

Volume on U.S. exchanges was 6.74 billion shares, compared with the 6.67 billion-share average for the full session over the last 20 trading days.

(Reporting by Stephen Culp; additional reporting by Sinead Carew; editing by Jonathan Oatis)

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Wall Street Gains on Earnings Optimism, Waning Syria Jitters


BlackRock gained 1.5 percent after the asset manager’s quarterly profit rose more than expected.

The earnings season begins in earnest on Friday with reports from JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co.

Analysts expect quarterly profit for S&P 500 companies to rise 18.4 percent from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

Jobless Claims

Weekly number of people who have filed for unemployment benefits for the first time.











“People are looking forward to earnings season,” said Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute in Winston-Salem, North Carolina. “Market participants are not wanting to miss out if (earnings are) as good as the forecasts say they will be.”

The Dow Jones Industrial Average rose 293.6 points, or 1.21 percent, to 24,483.05, the S&P 500 gained 21.8 points, or 0.83 percent, to 2,663.99, and the Nasdaq Composite added 71.22 points, or 1.01 percent, to 7,140.25.

Investor sentiment was also boosted by the weekly U.S. initial jobless claims report, which pointed to sustained labor market strength.

Facebook Inc was a notable laggard among technology stocks, falling 1.5 percent following a 5.3 percent gain over the past two days when Chief Executive Mark Zuckerberg testified before Congress on the social network’s data security.

Bed Bath & Beyond Inc shares dived 20.0 percent after the company’s full-year profit forecast missed estimates.

Advancing issues outnumbered decliners on the NYSE for a 1.20-to-1 ratio and on the Nasdaq, for a 1.84-to-1 ratio.

Volume on U.S. exchanges was 6.12 billion shares, compared to the 7.27 billion average for the full session over the last 20 trading days.

(Additional reporting by Sruthi Shankar in Bengaluru and Chuck Mikolajczak in New York; Editing by Nick Zieminski and Leslie Adler)

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Wall Street Rises but Pares Gains Late After Report of FBI Raid


“Even if it ultimately ends up being nothing, the initial reaction is almost always negative in the market,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Investors are looking forward to the start of earnings season to provide a sustained lift to U.S. stocks, with big banks, such as JPMorgan Chase, Citigroup and Wells Fargo, set to report first-quarter results on Friday.

Analysts expect quarterly profits for S&P 500 companies to rise 18.5 percent from a year ago, which would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

The Dow Jones Industrial Average rose 46.34 points, or 0.19 percent, to 23,979.10, the S&P 500 gained 8.69 points, or 0.33 percent, to 2,613.16 and the Nasdaq Composite added 35.23 points, or 0.51 percent, to 6,950.34. AveXis Inc rose 81.6 percent after Swiss drugmaker Novartis offered to buy the gene therapy company for $8.7 billion.

3-Month Treasury Bills

High rate at weekly auction.









Merck shares rose 5.2 percent after the drugmaker’s blockbuster cancer drug, Keytruda, met the main study goal of helping previously untreated lung cancer patients live longer.

Shares of Leucadia National Corp jumped 11.6 percent after the company said it would sell most of its non-financial assets to focus on investment banking and advisory services.

Declining issues outnumbered advancing ones on the NYSE by a 1.10-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored advancers.

Volume on U.S. exchanges was 6.28 billion shares, compared to the 7.3 billion average for the full session over the last 20 trading days.

(Additional reporting by Chuck Mikolajczak in New York and Sweta Singh and Diptendu Lahiri in Bengaluru; editing by Nick Zieminski and G Crosse)

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