US stocks add to gains as company earnings reports impress - InfoNews

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US stocks add to gains as company earnings reports impress

April 17, 2018 - 11:24 AM

U.S. stocks moved solidly higher in afternoon trading Tuesday, adding to the market's gains from a day earlier. Technology stocks, retailers and other consumer-focused companies accounted for much of the broad rally. Banks lost some of their early gains as bond yields declined. Investors were weighing mostly upbeat corporate earnings reports and economic data.

KEEPING SCORE: The S&P 500 index rose 27 points, or 1 per cent, to 2,705 as of 2:17 p.m. Eastern Time. The Dow Jones industrial average gained 221 points, or 0.9 per cent, to 24,784. The Nasdaq composite climbed 121 points, or 1.7 per cent, to 7,278. The Russell 2000 index of smaller-company stocks picked up 14 points, or 0.9 per cent, to 1,577.

THE QUOTE: "Even though we're early in the earnings season, the fact that we continue to see good earnings and earnings growth come out is really what's driving the market," said Nana Adae, global investment specialist at J.P. Morgan Private Bank. "Earnings growth ties to fundamentals and fundamentals are key."

BINGEWORTHY: Netflix jumped 9.6 per cent to $337.32 after the video streaming service said it gained 7.4 million subscribers in the first quarter, more than analysts expected.

LOOKING HEALTHY: UnitedHealth climbed 2.7 per cent to $236.55 after it reported a 31 per cent jump in first-quarter profit and said it gained Medicare Advantage and Medicaid customers. The nation's largest health insurer also raised its forecast for 2018.

GOOD CHEMISTRY: Celanese gained 3.5 per cent to $110.14 after the chemical company's latest results beat analysts' estimates. The company also raised its annual forecasts.

MIXED RESULTS: Shares in Johnson & Johnson fell 1.4 per cent to $129.89 after much-higher spending and one-time charges offset a big jump in the company's first-quarter revenue.

SHORTCIRCUITED: Tesla Motors slid 0.7 per cent to $289.06 on reports it has stopped production of its lower priced Model 3 sedan.

ON THE ECONOMY: The International Monetary Fund upgraded its economic outlook for the United States in 2018, forecasting that the U.S. economy will grow 2.9 per cent this year, up from the 2.7 per cent it had forecast in January and from the 2.3 per cent growth the economy achieved last year. The Federal Reserve said that U.S. factory output rose slightly last month. Meanwhile, the Commerce Department said that housing starts rose in March to a seasonally adjusted annual rate of 1.32 million. Homebuilders rose. Hovnanian Enterprises was among the biggest gainers, climbing 2.9 per cent to $1.99.

ENERGY: Benchmark U.S. crude slipped a penny to $66.21 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 13 cents to $71.29 per barrel.

BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury slipped to 2.82 per cent from 2.83 per cent late Monday. The decline in bond yields, which influence interest rates on mortgages and other loans, weighed on bank shares. Comerica fell 3.8 per cent to $92.48.

CURRENCIES: The dollar fell to 107.01 yen from 107.10 yen late Monday. The euro fell to $1.2364 from $1.2381.

METALS: Gold fell $1.20 to $1,349.50 an ounce. Silver added 11 cents to $16.79 an ounce. Copper slipped 2 cents to $3.08 a pound.

OVERSEAS: Major indexes in Europe posted gains. Germany's DAX climbed 1.6 per cent, while France's CAC 40 rose 0.8 per cent. Britain's FTSE 100 added 0.4 per cent. In Asia, Japan's benchmark Nikkei 225 edged 0.1 per cent higher, while Australia's S&P/ASX 200 was unchanged. South Korea's Kospi lost 0.2 per cent. Hong Kong's Hang Seng shed 0.9 per cent after new data showed China's economic growth held steady in the first quarter.

News from © The Associated Press, 2018
The Associated Press

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