Investing.com – Wall Street closed higher Wednesday, led by sharp gains in industrials and financials as investors cheered mostly upbeat earnings.
The Dow Jones Industrial Average rose about 0.32%. The S&P 500 gained roughly 0.22%, while the Nasdaq Composite fell about 0.01%.
Morgan Stanley (NYSE:MS) stock closed more than 2% higher, lifting the banking sector, after reporting earnings and revenue that topped expectations amid strong trading and investment business.
Financials were also boosted by a sharp rise in Berkshire Hathaway B (NYSE:BRKb) stock after the conglomerate tweaked its share buyback policy, raising expectations that the company would aggressively buy back shares after it reports second-quarter earnings on Aug. 3.
United Continental Holdings (NYSE:UAL) and CSX (NASDAQ:CSX), meanwhile, topped Wall Street estimates on both the top and bottom lines, adding to the move higher in the broader market, as industrials surged.
The batch of upbeat earnings from U.S. corporates has shifted the trading narrative to earnings, overshadowing renewed threats from China warning that it was mulling new countermeasures against U.S. tariffs.
China’s Ministry of Commerce warned Wednesday of further moves in response to U.S. steel and aluminum tariffs.
The announcement came as White House economic advisor Larry Kudlow blamed Chinese President Xi Jinping for the stalemate in trade talks, claiming Xi was "holding the game up."
Trade-sensitive stocks like Boeing (NYSE:BA) largely ignored the prospect of an escalation in the U.S.-China trade battle, closing nearly 1% higher amid a ramp up in new orders at the Farnborough Airshow.
VietJet announced it's buying 100 more Boeing 737 Max jets at the Farnborough Airshow. So far during the air show, Boeing has received orders and commitments of more than $70 billion at list prices.
The energy sector struggled to get behind the rally in the broader market despite a rise in U.S. oil prices on the back of a mixed petroleum report showing a surprise build in U.S. crude supplies. Product inventories declined.
On the New York Mercantile Exchange, crude futures for August delivery rose 1% to settle at $68.76 a barrel.
In economic news, housing starts slumped to a nine-month low, pressured by higher mortgage rates and elevated costs for labor and materials, government data showed.
Housing starts tumbled 12.3% to a seasonally-adjusted annual rate of 1.173 million units last month, the Commerce Department said.
On the political news front, U.S. President Donald Trump reportedly said that Russia is no longer targeting the United States with cyber attacks. This comes a day after Trump walked back comments about Russian meddling in the U.S. election.
Top Gainers and Losers on Wall Street Today:
UnitedHealth Group (NYSE:UNH), American Express (NYSE:AXP) and Caterpillar (NYSE:CAT) were among the top Dow gainers for the session.
Johnson & Johnson (NYSE:JNJ), Nike (NYSE:NKE) and McDonald’s (NYSE:MCD) were among the worst Dow performers of the session.