Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street closes higher as earnings reports soothe investor fears

Stock MarketsOct 20, 2021 07:13PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 18, 2021. REUTERS/Brendan McDermid

(Removes extraneous word)

By Devik Jain, Shreyashi Sanyal and Sinéad Carew

(Reuters) - The S&P 500 and the Dow climbed on Wednesday with the Dow hitting an intraday record high as investors eyed better than expected third-quarter earnings from U.S. companies.

While the Nasdaq lagged as technology stocks took a breather, the Dow Jones Industrials Average surpassed its previous record reached in mid-August before paring gains during the session. The benchmark S&P 500 index came within five points of its early September record at its peak for the day.

The S&P's healthcare index rallied for a second day in a row with help from Anthem and Abbott, which both gained ground on impressive financial forecasts.

The S&P had fallen almost 6% below its record by Oct. 4 as investors worried about supply chain problems, profit margin pressures, higher wages and increasing input costs ahead of the earnings season, which kicked off last week.

And while U.S. companies have been citing supply chain problems and higher costs during their earnings calls, investors have been relieved so far that they seem to be able to maintain profit margins by passing on costs to customers, according to Jack Janasiewicz, strategist and portfolio manager at Natixis Investment Managers Solutions.

"Earnings are what matter and thus far what we've seen have actually been better than expected. Margins are actually holding up, said Janasiewicz.

"The bar was set pretty low coming into (earnings season) so that makes things a little easier ... Things are coming out, so far, better than expected. That's putting upward pressure on stocks."

With just about 14% of S&P 500 third-quarter reports in, analysts were expecting earnings for the benchmark index to rise 33% from the year-ago quarter. More than 85% of earnings beat expectations, according to the latest Refinitiv data.

The Dow Jones Industrial Average rose 152.03 points, or 0.43%, to 35,609.34, the S&P 500 gained 16.56 points, or 0.37%, to 4,536.19 and the Nasdaq Composite dropped 7.41 points, or 0.05%, to 15,121.68.

The CBOE volatility index, also known as Wall Street's fear gauge, closed at 15.49 after earlier hitting 15.29, its lowest level since Aug. 13.

Eight of the S&P's eleven major industry sectors indexes were advanced, led by utilities and real estate, both finishing up about 1.6% higher, and healthcare stocks, which closed up 1.5%.

The technology sector was the S&P's biggest laggard, down 0.3%, as it snapped a five-day rally.

The S&P 500 Value index, which houses economically-sensitive stocks like energy and industrials, closed up 0.9% after hitting a fresh record high.

However, shares in IBM (NYSE:IBM) were down around 5% in after the bell trading on Wednesday after it missed market estimates for third-quarter revenue due to a decline in orders at its managed infrastructure unit ahead of a spinoff.

Shares in Tesla (NASDAQ:TSLA) Inc dipped slightly in late trade even after it beat Wall Street expectations for third-quarter revenue on the back of record deliveries, as the electric carmaker navigates through a prolonged global shortage of chips and raw materials.

Abbott Laboratories (NYSE:ABT) had finished the regular trading session up 3.3% after raising its full-year profit forecast on a rebound in COVID-19 test sales.

Anthem Inc soared 7.7% after raising its full-year earnings forecasts. However, Biogen Inc (NASDAQ:BIIB) shares closed down 0.6% as it reported a much smaller-than-expected quarterly sales of its Alzheimer's drug while it raised its full year earnings forecast.

Verizon Communications Inc (NYSE:VZ) gained 2.4% after it added more postpaid phone subscribers than expected in the third quarter.

Advancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 1.37-to-1 ratio favored advancers.

The S&P 500 posted 63 new 52-week highs and no new lows; the Nasdaq Composite recorded 106 new highs and 41 new lows.

On U.S. exchanges 9.29 billion shares changed hands compared with the 10.26 billion average for the last 20 sessions.

Wall Street closes higher as earnings reports soothe investor fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (16)
Ceyhun Aliyev
Ceyhun Aliyev Oct 20, 2021 2:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes
Dave Jones
Dave Jones Oct 20, 2021 1:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
covid19 test kit sales...the backbone of the economy!
Dave Jones
Dave Jones Oct 20, 2021 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stonks are great value now!
SADIK MAHAMED SADIK MAHAMED
SADIK MAHAMED SADIK MAHAMED Oct 20, 2021 1:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wowww more record levels of FRAUD in the US Ponzi scheme as Wall Street financially defiles the US working Read More
ben sc
ben sc Oct 20, 2021 1:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These aren't healthcare companies? Abbott Labs? they don't provide healthcare.......
Mitchel Pioneer
Mitchel Pioneer Oct 20, 2021 12:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More record levels of FRAUD in the US Ponzi Scheme, as Wall Street financially defiles the US working class at a record pace.  Assume the proper position America.
Jon Bal
Jon Bal Oct 20, 2021 11:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i guess good healthcare earnings grind cotton futures higher as well
Jamie An
Jamie An Oct 20, 2021 9:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
F.R suicide economy by name of GREAT INFLATION. It is never a temporary one.
vincent li
vincent li Oct 20, 2021 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The media are full it... Smells bad when the musical chairs are happening lol
Stan Smith
Stan Smith Oct 20, 2021 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't forget 'transitory' inflation which is alive and well. I've also noticed in your headlines that putting a positive descriptor ahead of a negative investment term seems to work wonders for stocks
vincent li
vincent li Oct 20, 2021 8:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
typical wall street..paying the likes of https://investing.com...lol
Millennial Metals
Millennial Metals Oct 20, 2021 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed has 2 choices: Weimar Republic hyperinflation or Great Depression debt defaults
Manuel Desouza
Manuel Desouza Oct 20, 2021 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They will never choose the latter.
peter neal
peter neal Oct 20, 2021 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It will be both.
Rajesh Kumar
Rajesh Kumar Oct 20, 2021 8:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China doesn't matter anymore. TSLA will keep going up.
Jouni Matero
Jouni Oct 20, 2021 8:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
One more "investor" in WSB style believing "stonks only go up", nothing matters, not even nuke attack lol
Prithvi Setty
Prithvi Setty Oct 20, 2021 8:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it must be hard to keep new reasons for fall and rise with in 24 hours
Jack Zydron
Jack Zydron Oct 20, 2021 8:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all green...
სმარტ ენერჯი დიეტა გაყიდვები
სმარტ ენერჯი დიეტა გაყიდვები Oct 20, 2021 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Steffen vdm
Steffen vdm Oct 20, 2021 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Worries = up up up!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email