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U.S. Stocks Move Sharply Higher On Upbeat Earnings News

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Following the lackluster performance seen in the previous session, stocks moved sharply higher over the course of the trading day on Tuesday. With the jump, the major averages extended the strong upward move seen in the latter half of last week.

The major averages ended the day firmly in positive territory but off their highs of the session. The Dow jumped 237.44 points or 0.9 percent to 27,024.80, the Nasdaq soared 100.06 points or 1.2 percent to 8,148.71 and the S&P 500 surged up 29.53 points or 1 percent to 2,995.68.

The rally on Wall Street comes as the spotlight shifted to corporate earnings news, with upbeat results from some big-name companies generating considerable buying interest.

Corporate news has recently taken a backseat to developments on the trade front but is likely to attract attention as earnings season ramps up in the coming days.

Financial giant JPMorgan Chase (JPM) helped lead the advance on Wall Street after reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

Shares of UnitedHealth (UNH) also soared after the health insurer reported better than expected third quarter results and raised its full-year guidance.

Citigroup (C) and Johnson & Johnson (JNJ) also reported third quarter earnings that beat estimates, Goldman Sachs (GS) reported earnings that missed expectations.

Semiconductor stocks showed a substantial move to the upside over the course of the session, driving the Philadelphia Semiconductor Index up by 2.2 percent to a new record closing high.

The upbeat earnings news from JPMorgan and Citigroup also contributed to a rally by financial stocks, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index surging up by 1.8 percent and 1.5 percent, respectively.

Healthcare, biotechnology, and transportation stocks also saw notable strength, moving higher along with most of the other major sectors.

Meanwhile, gold stocks were among the few groups to buck the uptrend, moving lower along with the price of the precious metal.

With gold for December delivery sliding $14.10 to $1,483.50 an ounce, the NYSE Arca Gold Bugs Index plunged by 2.9 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index soared by 1.9 percent, while China's Shanghai Composite Index fell by 0.6 percent.

European stocks also moved mostly higher on the day, with the German DAX Index and the French CAC 40 Index surging up by 1.2 percent and 1.1 percent, respectively. However, the U.K.'s FTSE 100 Index bucked the uptrend and closed just below the unchanged.

In the bond market, treasuries showed a significant downturn after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.9 basis points to 1.771 percent after hitting a low of 1.689 percent.

Looking Ahead

Trading on Wednesday may be impacted by reaction to reports on retail sales and homebuilder confidence as well as the Federal Reserve's Beige Book.

On the earnings front, Bank of America (BAC) is among the companies due to report their quarterly results before the start of trading on Wednesday.

For comments and feedback contact: editorial@rttnews.com

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