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Wall Street closes higher boosted by tech stocks gains on upbeat earnings

Stock Markets Jul 20, 2022 06:51PM ET
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2/2 © Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri 2/2

By Echo Wang

(Reuters) - U.S. stocks ended higher on Wednesday with the tech-heavy Nasdaq booking a 1.6 % gain on positive earnings signals with a wary eye on inflation and more interest rate hikes by the Fed.

Netflix Inc (NASDAQ:NFLX)'s shares added 7.4% after the company predicted it would return to customer growth during the third quarter, while posting a smaller-than-expected 1 million drop in subscribers in the second quarter.

Other high-growth stocks extended gains following the forecast from the streaming service provider. Shares of Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc rose between 1% and 4.2%.

Electric vehicle maker Tesla (NASDAQ:TSLA) Inc rose 2% in extended trading after reporting a rise in quarterly profit after the bell.

“Equity prices are trending in a roller coaster fashion, currently being at the mercy of inflation, interest rates and earnings,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

“We're going to need another series of reporting cycles to confirm whether or not inflation indeed is getting under control.”

Analysts expect aggregate year-on-year S&P 500 profit to grow 5.9% in this reporting season, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.

Runaway inflation initially led markets to price in a full 100-basis-point hike in interest rates at the Fed's upcoming meeting next week, until some policymakers signaled a 75-basis-point increase.

The Dow Jones Industrial Average rose 47.79 points, or 0.15%, to 31,874.84, the S&P 500 gained 23.21 points, or 0.59%, to 3,959.9 and the Nasdaq Composite added 184.50 points, or 1.58%, to 11,897.65.

Seven of the 11 major sectors of the S&P 500 gained ground, with consumer discretionary and information technology posting the biggest gains.

Trading remained volatile in thin volumes, with the CBOE Volatility index closed at 23.79 points to its lowest in nearly three months.

Volume on U.S. exchanges was 11.51 billion shares, compared with the 11.43 billion average for the full session over the last 20 trading days.

"Low volumes accentuate market moves historically and even though we've wiped off $10 or $15 trillion from global equities this year, there's still a lot of excess liquidity. So low volume on excess liquidity can still accentuate moves," John Lynch, chief investment officer for Comerica (NYSE:CMA) Wealth Management, said.

Baker Hughes Co tumbled 8.3% as the largest S&P percentage loser, as the oilfield services provider reported a bigger second-quarter loss, while its adjusted profit also missed estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 2.28-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and 29 new lows; the Nasdaq Composite recorded 29 new highs and 38 new lows.

Wall Street closes higher boosted by tech stocks gains on upbeat earnings
 

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Comments (16)
Dave Jones
Dave Jones Jul 20, 2022 2:19PM ET
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These headlines are getting more surreal. So everything went up because Netflix said?
Kerry Ditto
Kerry Ditto Jul 20, 2022 1:59PM ET
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natural gas hit +8% now. weaponizing it seems worse than weak economic sanction
Kerry Ditto
Kerry Ditto Jul 20, 2022 1:52PM ET
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natural gas price jumping +7%+ today appeas an early indication of global economic depression
Mitchel Pioneer
Mitchel Pioneer Jul 20, 2022 1:42PM ET
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Nice to see that Netflix is a bellwether for the global economy.  What a joke, as the fraud picks up steam in the laughingstock of the financial world.
Jw William
Jw William Jul 20, 2022 1:42PM ET
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the accounting firms are cooking the books again.....make it look good on paper.
Kerry Ditto
Kerry Ditto Jul 20, 2022 1:26PM ET
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Europe energy crisis likely leads to ecomic collapse, which spills over to us economy. global economic depression seems happening
Fusairu Takumi
Fusairu Takumi Jul 20, 2022 1:10PM ET
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And Nasdaq is heading to south again lol
Arjun Sethumadhavan
Arjun Sethumadhavan Jul 20, 2022 12:28PM ET
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Bear market rallies are swift and agile. Exit, sit on cash and wait to buy at value.
Arjun Sethumadhavan
Arjun Sethumadhavan Jul 20, 2022 12:28PM ET
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Bear market rallies are swift and agile. Exit, sit on cash and wait to buy at value.
Arjun Sethumadhavan
Arjun Sethumadhavan Jul 20, 2022 12:27PM ET
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Bear market rallies are swift and agile. Exit, sit on cash and wait to buy at value.
irfan ameer
irfan ameer Jul 20, 2022 11:36AM ET
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stupidity at it's finest
 
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