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Wall Street rebounded on Tuesday as stocks surged across the board due to strong third-quarter 2018 earnings results and impressive economic data. All three major stock indexes closed sharply higher recording their biggest single-day gain since Mar 26. A relative calm on trade-related issues also boosted investors’ confidence on equities.
The Dow Jones Industrial Average (DJI) closed at 25,798.42, soaring 2.2% or 547.87 points. The S&P 500 Index (INX) also surged 2.2% to close at 2,809.92. The Nasdaq Composite Index (IXIC) closed at 7,645.49, climbing 2.9% or 214.74 points. A total of 7.5 billion shares were traded on Tuesday, lower than the last 20-session average of 7.9 billion shares. Advancers outnumbered decliners on the NYSE by 5.17-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 4.02-to-1 ratio. The CBOE VIX decreased 17.3% to close at 17.62.
How Did the Benchmarks Perform?
The Dow ended in positive territory reversing Monday’s loss. Notably, all 30 components of the blue-chip index closed in the green.
The S&P 500 finished in the green as Technology Select Sector SPDR (XLK), Health Care Select Sector SPDR (XLV), Communication Services Select Sector SPDR (XLC) and Consumer Discretionary Select Sector SPDR (XLY) jumped 3%, 2.7%, 2.6% and 2%, respectively. Notably, each of the 11 sectors of the benchmark index closed in the green.
Meanwhile, the tech-laden Nasdaq Composite also finished in positive territory due to strong earnings results of technology stocks.
Earnings Results Boosts Market Sentiments
Strong earnings results declared by a series of major companies across the market have significantly boosted investors’ confidence. Third quarter earnings results so far reflected strong fundaments of the U.S. corporates despite higher interest rate and trade-related conflicts with China.
The Goldman Sachs Group Inc. (GS - Free Report) reported adjusted earnings per share of $6.28, beating the Zacks Consensus Estimate of $5.42. Revenues of $8.6 billion also surpassed the Zacks Consensus Estimate of $8.4 billion. Consequently stock price surged 3%. (Read More)
Shares of Morgan Stanley (MS - Free Report) jumped 5.7% after posting adjusted earnings per share of $1.17, outpacing the Zacks Consensus Estimate of $1.00. Revenues of $9.87 billion also surpassed the Zacks Consensus Estimate of $9.53 billion. (Read More)
Johnson & Johnson (JNJ - Free Report) reported adjusted earnings per share of $2.05, surpassing the Zacks Consensus Estimate of $2.03. Revenues of $20.3 billion also outpaced the Zacks Consensus Estimate of $19.9 billion. Consequently stock price climbed 2%. (Read More)
Shares of Johnson & Johnson Inc. (UNH - Free Report) soared 4.7% after posting adjusted earnings per share of $3.41, beating the Zacks Consensus Estimate of $3.30. Revenues of $56.6 billion also surpassed the Zacks Consensus Estimate of $56.1 billion. (Read More)
On Oct 16, the Federal Reserve reported that U.S. industrial production for the month of September rose 0.3%, surpassing the consensus estimate of a gain of 0.2%. In an annualized basis, industrial grew 3.3% in the third quarter of 2018. In September, manufacturing sector was up 0.2% and 5.1% year over year, marking its biggest gain in eight years. Mining production grew 0.5% while utilities output remained flat sequentially. Capacity utilization for the industrial sector remained flat at 781.1%, marginally below the consensus estimate of 78.2%.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) reported that job openings in the month of August reached an all-time high of 7.14. Total number of hiring by the U.S. corporates also increased a record high of 5.78 million.
The National Association of Home Builders’ monthly confidence index pegged at 68 in October after gaining 1 point. Current sales conditions index was at 74 in October, and expectations for sales over the next six months index was 75. Both indexes gained 1 point.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Stock Market News For Oct 17, 2018
Wall Street rebounded on Tuesday as stocks surged across the board due to strong third-quarter 2018 earnings results and impressive economic data. All three major stock indexes closed sharply higher recording their biggest single-day gain since Mar 26. A relative calm on trade-related issues also boosted investors’ confidence on equities.
The Dow Jones Industrial Average (DJI) closed at 25,798.42, soaring 2.2% or 547.87 points. The S&P 500 Index (INX) also surged 2.2% to close at 2,809.92. The Nasdaq Composite Index (IXIC) closed at 7,645.49, climbing 2.9% or 214.74 points. A total of 7.5 billion shares were traded on Tuesday, lower than the last 20-session average of 7.9 billion shares. Advancers outnumbered decliners on the NYSE by 5.17-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 4.02-to-1 ratio. The CBOE VIX decreased 17.3% to close at 17.62.
How Did the Benchmarks Perform?
The Dow ended in positive territory reversing Monday’s loss. Notably, all 30 components of the blue-chip index closed in the green.
The S&P 500 finished in the green as Technology Select Sector SPDR (XLK), Health Care Select Sector SPDR (XLV), Communication Services Select Sector SPDR (XLC) and Consumer Discretionary Select Sector SPDR (XLY) jumped 3%, 2.7%, 2.6% and 2%, respectively. Notably, each of the 11 sectors of the benchmark index closed in the green.
Meanwhile, the tech-laden Nasdaq Composite also finished in positive territory due to strong earnings results of technology stocks.
Earnings Results Boosts Market Sentiments
Strong earnings results declared by a series of major companies across the market have significantly boosted investors’ confidence. Third quarter earnings results so far reflected strong fundaments of the U.S. corporates despite higher interest rate and trade-related conflicts with China.
The Goldman Sachs Group Inc. (GS - Free Report) reported adjusted earnings per share of $6.28, beating the Zacks Consensus Estimate of $5.42. Revenues of $8.6 billion also surpassed the Zacks Consensus Estimate of $8.4 billion. Consequently stock price surged 3%. (Read More)
Shares of Morgan Stanley (MS - Free Report) jumped 5.7% after posting adjusted earnings per share of $1.17, outpacing the Zacks Consensus Estimate of $1.00. Revenues of $9.87 billion also surpassed the Zacks Consensus Estimate of $9.53 billion. (Read More)
Johnson & Johnson (JNJ - Free Report) reported adjusted earnings per share of $2.05, surpassing the Zacks Consensus Estimate of $2.03. Revenues of $20.3 billion also outpaced the Zacks Consensus Estimate of $19.9 billion. Consequently stock price climbed 2%. (Read More)
Shares of Johnson & Johnson Inc. (UNH - Free Report) soared 4.7% after posting adjusted earnings per share of $3.41, beating the Zacks Consensus Estimate of $3.30. Revenues of $56.6 billion also surpassed the Zacks Consensus Estimate of $56.1 billion. (Read More)
Both Johnson & Johnson and Johnson & Johnson carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
On Oct 16, the Federal Reserve reported that U.S. industrial production for the month of September rose 0.3%, surpassing the consensus estimate of a gain of 0.2%. In an annualized basis, industrial grew 3.3% in the third quarter of 2018. In September, manufacturing sector was up 0.2% and 5.1% year over year, marking its biggest gain in eight years. Mining production grew 0.5% while utilities output remained flat sequentially. Capacity utilization for the industrial sector remained flat at 781.1%, marginally below the consensus estimate of 78.2%.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) reported that job openings in the month of August reached an all-time high of 7.14. Total number of hiring by the U.S. corporates also increased a record high of 5.78 million.
The National Association of Home Builders’ monthly confidence index pegged at 68 in October after gaining 1 point. Current sales conditions index was at 74 in October, and expectations for sales over the next six months index was 75. Both indexes gained 1 point.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>