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U.S. stocks ended higher on Tuesday for the second straight day as another batch of solid earnings reports gave investors’ confidence a boost. Also, treasury yields eased on Tuesday. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.1% or 337.98 points to end at 30,523.80 points, after rising as much as 652 points at its trading high.
The S&P 500 climbed 1.1% or 42.03 points to close at 3,719.98 points. Industrials and materials stocks were the biggest gainers.
The Industrials Select Sector SPDR (XLI) gained 2.4%, while the Materials Select Sector SPDR (XLB) rose 2%. The Consumer Discretionary Select Sector SPDR (XLY) gained 1.4%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.9% or 96.60 points to finish at 10,772.40 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.77% to 30.50. Advancers outnumbered decliners on Nasdaq by a 1.89-to-1 ratio.
Solid Earnings Reports Help Markets
Stocks rebounded on Monday after a slew of financial giants reported impressive quarterly results. The positive sentiment continued through Tuesday, as another batch of robust earnings reports from some of the biggest American corporations gave a further boost to investors’ sentiment.
Although markets pared some of the early gains, major U.S. indexes still managed to close sharply higher. The initial rally on Tuesday was driven by The Goldman Sachs Group, Inc. (GS - Free Report) , which reported solid quarterly results.
Goldman Sachs reported quarterly earnings of $8.25 per share, beating the Zacks Consensus Estimate of $7.47 per share. Following that, shares of the company rose 2.3%. Goldman Sachs has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, Johnson & Johnson (JNJ - Free Report) reported its quarterly reports. The pharma giant reported quarterly earnings of $2.55 per share, beating the Zacks Consensus Estimate of $2.49 per share. Shares of Lockheed Martin Corporation (LMT - Free Report) also jumped 8.7% after the company reported an earnings beat. Lockheed Martin reported third-quarter 2022 adjusted earnings of $6.87 per share, outpacing the Zacks Consensus Estimate of $6.58
The third-quarter earnings season is fast gaining pace. So far, 46 S&P 500 companies have already released their third-quarter results, of which 70% have surpassed profit estimates and 63% have topped revenue estimates.
Also, treasury yields eased slightly on Tuesday. The 10-year Treasury yield dropped 1.66 basis points to 3.996% on Tuesday from 4.012 a day earlier. U.S. bonds and stocks got a boost on Tuesday following an announcement from the U.K. central bank that it would delay its bond-selling program for the time being.
The Fed’s aggressive interest rate-hike stance has been igniting fears among investors that such a move could push the economy into recession. This has been unsettling stocks. However, a solid start to the earnings season has somewhat eased the fears among investors as they believe that the country’s economic health is better than it was feared.
Economic Data
In economic data released on Tuesday, the Fed said that industrial production rose 0.4% in September, after a revised 0.1% decline in August. Capacity utilization at U.S. factories also increased 0.2% in September.
However, homebuilders’ confidence fell 8 points to 38 in September, the 10th-straight monthly decline, the National Association of Home Builders reported.
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Stock Market News for Oct 19, 2022
U.S. stocks ended higher on Tuesday for the second straight day as another batch of solid earnings reports gave investors’ confidence a boost. Also, treasury yields eased on Tuesday. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.1% or 337.98 points to end at 30,523.80 points, after rising as much as 652 points at its trading high.
The S&P 500 climbed 1.1% or 42.03 points to close at 3,719.98 points. Industrials and materials stocks were the biggest gainers.
The Industrials Select Sector SPDR (XLI) gained 2.4%, while the Materials Select Sector SPDR (XLB) rose 2%. The Consumer Discretionary Select Sector SPDR (XLY) gained 1.4%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq gained 0.9% or 96.60 points to finish at 10,772.40 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.77% to 30.50. Advancers outnumbered decliners on Nasdaq by a 1.89-to-1 ratio.
Solid Earnings Reports Help Markets
Stocks rebounded on Monday after a slew of financial giants reported impressive quarterly results. The positive sentiment continued through Tuesday, as another batch of robust earnings reports from some of the biggest American corporations gave a further boost to investors’ sentiment.
Although markets pared some of the early gains, major U.S. indexes still managed to close sharply higher. The initial rally on Tuesday was driven by The Goldman Sachs Group, Inc. (GS - Free Report) , which reported solid quarterly results.
Goldman Sachs reported quarterly earnings of $8.25 per share, beating the Zacks Consensus Estimate of $7.47 per share. Following that, shares of the company rose 2.3%. Goldman Sachs has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, Johnson & Johnson (JNJ - Free Report) reported its quarterly reports. The pharma giant reported quarterly earnings of $2.55 per share, beating the Zacks Consensus Estimate of $2.49 per share. Shares of Lockheed Martin Corporation (LMT - Free Report) also jumped 8.7% after the company reported an earnings beat. Lockheed Martin reported third-quarter 2022 adjusted earnings of $6.87 per share, outpacing the Zacks Consensus Estimate of $6.58
The third-quarter earnings season is fast gaining pace. So far, 46 S&P 500 companies have already released their third-quarter results, of which 70% have surpassed profit estimates and 63% have topped revenue estimates.
Also, treasury yields eased slightly on Tuesday. The 10-year Treasury yield dropped 1.66 basis points to 3.996% on Tuesday from 4.012 a day earlier. U.S. bonds and stocks got a boost on Tuesday following an announcement from the U.K. central bank that it would delay its bond-selling program for the time being.
The Fed’s aggressive interest rate-hike stance has been igniting fears among investors that such a move could push the economy into recession. This has been unsettling stocks. However, a solid start to the earnings season has somewhat eased the fears among investors as they believe that the country’s economic health is better than it was feared.
Economic Data
In economic data released on Tuesday, the Fed said that industrial production rose 0.4% in September, after a revised 0.1% decline in August. Capacity utilization at U.S. factories also increased 0.2% in September.
However, homebuilders’ confidence fell 8 points to 38 in September, the 10th-straight monthly decline, the National Association of Home Builders reported.