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U.S. stocks closed higher on Monday after the U.K. government reversed its tax policy and solid earnings reports from a batch of companies gave a boost to investors’ confidence. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.9% or 550.99 points to close at 30,185.82 points, after rising as much as 677 points at its trading high.
The S&P 500 gained 2.7% or 94.88 points to finish at 3,677.95 points. Consumer discretionary, real estate and tech stocks were the best performers.
The Real Estate Select Sector SPDR (XLRE) and the Consumer Discretionary Select Sector SPDR (XLY) gained 3.7% and 4.1%, respectively. The Technology Select Sector SPDR (XLK) gained 3.1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 3.4% or 354.41 points to end at 10,675.80 points, recording its biggest single-day percentage point gain since Jul 27.
The fear-gauge CBOE Volatility Index (VIX) was down 2.03% to 31.37. Advancers outnumbered decliners on the NYSE by a 4.79-to-1 ratio. On Nasdaq, a 2.98-to-1 ratio favored advancing issues. A total of 10.65 billion shares were traded on Monday, lower than the last 20-session average of 11.52 billion.
Markets Rebound on Solid Earnings Reports
Stocks have been making wild swings over the past few weeks, indicating nervousness and uneasiness among investors. The S&P 500 has now declined in four of the past five weeks, signaling the volatility that continues to exist.
Stocks closed lower on Friday after making a historic turnaround a day earlier. The volatility seems to be continuing. On Monday, investors’ sentiment improved from Friday’s lows after a batch of big financial companies reported impressive quarterly reports.
Bank of America Corporation (BAC - Free Report) led the rally after it became the latest financial giant to report solid earnings. Bank of America reported quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.79 per share. Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This gave confidence to investors as they are hopeful about an impressive earnings season. The third-quarter earnings season is steadily gaining pace and investors are now looking forward to some of the big names that are scheduled to report quarterly results this week.
The tech-heavy Nasdaq also made a solid rebound on Monday, sending tech stocks on a rally after a long time. Shares of Zoom Video Communications, Inc. (ZM - Free Report) jumped 6.1%, while Netflix, Inc. (NFLX - Free Report) , which is scheduled to report earnings this week, soared 6.6%.
Political Developments in U.K. Stabilize Markets
Another reason behind Monday’s rally was political developments in the U.K. The country’s new finance minister Jeremy Hunt said that almost all the proposed $51 billion tax cuts would be scrapped.
The proposed tax cuts were being blamed for sparking volatility in the global market and igniting fears of a breakdown of the global financial system. The announcement from Hunt saw the British pound trading more than 1% higher at close to $1.135 per U.S. dollar.
Economic Data
In major economic data released on Monday, New York Fed’s Empire State manufacturing index came up with a reading of negative 9.1 in October after declining 7.6 points from the prior month, and wider than expectations of a reading of negative 5. This is the third-straight negative reading.
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Stock Market News for Oct 18, 2022
U.S. stocks closed higher on Monday after the U.K. government reversed its tax policy and solid earnings reports from a batch of companies gave a boost to investors’ confidence. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.9% or 550.99 points to close at 30,185.82 points, after rising as much as 677 points at its trading high.
The S&P 500 gained 2.7% or 94.88 points to finish at 3,677.95 points. Consumer discretionary, real estate and tech stocks were the best performers.
The Real Estate Select Sector SPDR (XLRE) and the Consumer Discretionary Select Sector SPDR (XLY) gained 3.7% and 4.1%, respectively. The Technology Select Sector SPDR (XLK) gained 3.1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 3.4% or 354.41 points to end at 10,675.80 points, recording its biggest single-day percentage point gain since Jul 27.
The fear-gauge CBOE Volatility Index (VIX) was down 2.03% to 31.37. Advancers outnumbered decliners on the NYSE by a 4.79-to-1 ratio. On Nasdaq, a 2.98-to-1 ratio favored advancing issues. A total of 10.65 billion shares were traded on Monday, lower than the last 20-session average of 11.52 billion.
Markets Rebound on Solid Earnings Reports
Stocks have been making wild swings over the past few weeks, indicating nervousness and uneasiness among investors. The S&P 500 has now declined in four of the past five weeks, signaling the volatility that continues to exist.
Stocks closed lower on Friday after making a historic turnaround a day earlier. The volatility seems to be continuing. On Monday, investors’ sentiment improved from Friday’s lows after a batch of big financial companies reported impressive quarterly reports.
Bank of America Corporation (BAC - Free Report) led the rally after it became the latest financial giant to report solid earnings. Bank of America reported quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.79 per share. Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This gave confidence to investors as they are hopeful about an impressive earnings season. The third-quarter earnings season is steadily gaining pace and investors are now looking forward to some of the big names that are scheduled to report quarterly results this week.
The tech-heavy Nasdaq also made a solid rebound on Monday, sending tech stocks on a rally after a long time. Shares of Zoom Video Communications, Inc. (ZM - Free Report) jumped 6.1%, while Netflix, Inc. (NFLX - Free Report) , which is scheduled to report earnings this week, soared 6.6%.
Political Developments in U.K. Stabilize Markets
Another reason behind Monday’s rally was political developments in the U.K. The country’s new finance minister Jeremy Hunt said that almost all the proposed $51 billion tax cuts would be scrapped.
The proposed tax cuts were being blamed for sparking volatility in the global market and igniting fears of a breakdown of the global financial system. The announcement from Hunt saw the British pound trading more than 1% higher at close to $1.135 per U.S. dollar.
Economic Data
In major economic data released on Monday, New York Fed’s Empire State manufacturing index came up with a reading of negative 9.1 in October after declining 7.6 points from the prior month, and wider than expectations of a reading of negative 5. This is the third-straight negative reading.