(Reuters) – U.S. Pat. stocks rose on Wednesday, as strong earnings from IBM United Technologies and Procter & Gamble rebounded for Wall Street from its second biggest decline in 2019.
International Business Machines Corp (N 🙂 jumped 8.78 percent and led the gains on the Dow Jones Industrial Average () after the technology services company projected 201
Gains in shares of IBM also lifted the S&P technology sector (), which rose 1.19 percent.
A 6.65 percent rise in United Technologies Corp. (N :), which reported a better-than-expected quarterly profit, pushing the S&P industrial sector () 1.05 percent higher.
Fellow industrial companies Boeing Co (N :), Caterpillar Inc (N 🙂 and 3M Co (N 🙂 rose between 0.5 percent and 1.2 percent. Wall Street's gain follows more than 1 percent loss on Tuesday about global growth due to global economic outlook from the International Monetary Fund, signs of further cooling in China's economy and mixed reports on US-China trade talks.
"Given a day like yesterday, a bounce driven by earnings is not unusual, "said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
" UTX, being an industrial company, is definitely something investors are looking at. that for hints on the impact of a global economic slowdown.
Easing some concerns about trade talks, White House economic adviser Kevin Hassett said he believed that the United States and China could reach a trade deal at a March 1 deadline. ET the Dow Jones Industrial Average () was up 283.95 points, or 1.16 percent, at 24.688.43, the S&P 500 () was up 18.80 points, or 0.71 percent, at 2.651.70 and the Nasdaq Composite () was up 58.66 points, or 0.84 percent. , at 7,079.02
Despite the pullback on Tuesday, the benchmark S&P 500 index () is less than 10 percent away from its record high on Sept.20 and has climbed about 6 percent this year. Procter & Gamble Co (N) rose 5.98 percent, helping the consumer staples sector () rise 1.41 percent, after its quarterly revenue beat Wall Street expectation.
The biggest decliner in the sector was Kimberly-Clark Corp ( N :), which fell 1.96 percent after its quarterly profit analysts' estimate due to rising raw materials costs and a strong US
The communication services sector () rose 0.93 percent to 6.35 percent gain in cable services provider Comcast Corp (O), which beat analysts' estimates for revenue on lower-than-expected video subscriber.
Abbott Laboratories (N 🙂 dropped 1.36 percent after the healthcare company missed quarterly revenue estimate due to lower sales of generic drugs in emerging markets and gifted downbeat forecasts for the current quarter.
Of the 61 S&P 500 companies reported until Tuesday, 78.7 percent have beaten Wall Street's profit estimates and that is above the historical average of 64 percent, according to Refinitive data.
However, earnings growth estimates have dropped to 14.1 percent from 20.1 percent at the start of October.
Advancing issues outnumbered decliners at a 2.83-to-1 ratio on the NYSE and at a 2.83-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new lows, while the Nasdaq recorded 11 new highs and 14 new lows.