Stock Market Today: The Dow Jones Boosts Profits As Bitcoin Rises

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Wall Street will see a wave of corporate profits on Tuesday.

Angela Weiss / AFP via Getty Images

Shares were higher on Tuesday as earnings continue to impress investors and the market recovers from a recent pullback.

In the afternoon discussions, the


Dow Jones Industrial Average

rose 182 points, or 0.5%, after the index slipped 36 points on Monday to close at 35,258.


S&P 500

and


Nasdaq

were both up 0.7%.

“Investors continue to focus on a strong start to the third quarter earnings season,” wrote Tom Essaye, founder of Sevens Report Research.

Overall third-quarter earnings for companies in the S&P 500 exceeded analysts’ estimates by around 14%, according to Credit Suisse. Banks exceeded estimates for the widest margin, which drastically increased overall profits. Yet companies across the board are erasing profit expectations.

The results allow a wide range of stocks to increase, with the


Equal Weight Invesco S&P 500

Exchange Traded Fund (RER) up 0.6%. This fund weights each asset in the index equally and its movements indicate the range of stocks up or down.

Another big plus that is helping the wider stock market: Manufacturing companies may have already suffered the worst downgrades in analyst earnings. Of all the changes in analysts’ earnings estimates for the next two years, 40% have been revised up, according to RBC Capital Markets. That’s down from a peak of 81% in 2021, indicating that analysts have been more negative about the industry recently.

“Industrials and materials are already near past lows and not recessive, suggesting earnings sentiment has reached or will soon be at its lowest,” wrote Lori Calvasina, chief US equity strategist at RBC. Capital Markets.

If analysts predicted the worst, all types of sectors could benefit, allowing investors to buy stocks again. The S&P 500 has risen more than 5% from its recent sell-off low and is trading just below its all-time closing high of September 2.

But many on Wall Street point out that supply chain problems could persist until 2022, and earnings estimates could fall further in the future.

Groups that reported profits on Tuesday morning included Johnson & Johnson (ticker: JNJ) – he beat – Philip Morris (PM) – he also beat – and Procter & Gamble (PG) – he beat (all three are down ). Netflix (NFLX) and United Airlines (UAL) are expected to report after the close.

Overseas, Hong Kong


Hang Seng Index

rose 1.5%, rebounding from Monday’s losses driven by Chinese growth fears. The pan-European


Stoxx 600

was 0.3% higher.

Meanwhile, Bitcoin prices were approaching their all-time high as a historic ProShares ETF tracking Bitcoin futures began trading on Tuesday. The main crypto was around $ 62,230.

Here are four actions in motion Tuesday:


Procter & Gamble

The stock (PG) fell 1.8% after the company reported earnings of $ 1.61 per share, beating estimates of $ 1.59 per share, on revenue of 20.3 billion dollars, higher than expectations of 19.9 billion dollars. The company has warned of rising commodity costs, upping its forecast for such cost inflation.


Philip Morris International

(PM) The stock fell 1% after the company reported earnings of $ 1.58 per share, beating estimates of $ 1.56 per share, on sales of $ 8.1 billion, as of above expectations of $ 7.9 billion.


Merck

(MRK) gained 2.7% after Covid antiviral trial of


Atea Pharma

(AVIR) failed in a phase 2 trial. Atea stock fell 64%.


Skechers

(SKX) rose 0.6% after being upgraded to Buy from Hold at Williams Capital.


Zillow

(Z) rose 0.2% even after being reduced to Neutral by Outperformance at Wedbush.

Mining giant


BHP

(BHP) rose 1.1% in London after a quarterly production update. As iron ore production plummeted due to mine maintenance and supply chain disruptions, oil production increased.

Write to editors@barrons.com


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