June 4, 2023

DS Duke

Global Business In World

Indexes Benefit From Mighty Earnings Reports

2 min read
U.S. stocks climbed on Tuesday as major companies continued to report strong third-quarter earnings, easing...

U.S. stocks climbed on Tuesday as major companies continued to report strong third-quarter earnings, easing concerns that persistent COVID cases and rising costs would derail corporate America’s profit recovery.

The Dow Jones Industrials vaulted 198.70 points to 35,457.31.

The S&P 500 gained 33.17 points to 4,519.63, rising for a fifth straight day.

The NASDAQ Composite spiked 107.28 points to 15,129.09.

Dow member Travelers saw its shares gain more than 1.6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} after the insurance company’s quarterly earnings report topped expectations.

Procter & Gamble continued the bullish trend with better-than-expected earnings, but its shares dipped nearly 1.2{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. The consumer products giant said it is raising prices to cover rising commodity and freight costs and warned that inflation may continue.

Elsewhere, Walmart shares gained 2.1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} after Goldman Sachs added the big-box retailer to its conviction buy list, saying the stock could rally nearly 40{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.

As of Tuesday morning, 82{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} of S&P 500 companies that have reported earnings beat expectations, according to FactSet. Taking into account those reports and estimates for those to come, third-quarter profit growth will come in at 30{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}

Other major reports after the bell Tuesday include Netflix and United Airlines.

Prices for 10-year Treasurys faded, raising yields to 1.64{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} from Monday’s 1.59{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. Treasury prices and yields move in opposite directions.

Oil prices regained 41 cents to $82.85 U.S. a barrel.

Gold prices regrouped $4.30 to $1,770.00U.S. an ounce.

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