por admin » Mié Ene 22, 2020 9:51 am
S&P 500 and Nasdaq hit records on better-than-expected earnings, IBM leads Dow higher by 100 points
PUBLISHED 7 HOURS AGO UPDATED 4 MINS AGO
Fred Imbert
@foimbert
CNBC.COM
Wall Street set for a higher open
Traders work on the floor of the NYSE.
Stocks rose on Wednesday, rebounding from the previous session's losses after the release of strong quarterly numbers from IBM.
The Dow Jones Industrial Average gained 100 points, or 0.3%. The S&P 500 advanced 0.4% while the Nasdaq Composite climbed 0.6%. Both the S&P 500 and Nasdaq reached record highs.
IBM shares climbed more than 4% on the back of quarterly numbers that beat analyst expectations. The company also issued 2020 earnings guidance that topped estimates.
These results put IBM "on its front foot for 2020," Nomura Instinet analyst Jeffrey Kvaal said in a note. "IBM is quickly pivoting its existing businesses toward the hybrid cloud."
So far, more than 10% of S&P 500 companies have posted their latest quarterly results. Of those companies, 75% have posted better-than-forecast earnings.
Traders work before the opening bell at the New York Stock Exchange (NYSE) on November 14, 2019 in New York City.
JOHANNES EISELE / AFP / Getty Images
Traders work before the opening bell at the New York Stock Exchange (NYSE) on November 14, 2019 in New York City.
Tesla shares, meanwhile, rose 3.7% as the electric car maker's market cap broke above $100 billion for the first time.
Stocks pulled back slightly on Tuesday as worries over the spreading of the deadly coronavirus dampened investor sentiment. Those fears eased Wednesday after China unveiled measures to rein in the virus.
President Donald Trump also said he trusts Chinese President Xi Jinping to deal with the crisis, adding the U.S. has everything "totally under control." Trump made his comments after U.S. public health officials confirmed that the first U.S. case has been diagnosed in Washington State. However, the Centers for Disease Control and Prevention said the patient "poses little risk" to the public.
Airline and casino stocks rebounded Wednesday after falling sharply in the previous session. American and United Airlines were up 1.7% and 0.9%, respectively. Las Vegas Sands, meanwhile, advanced 0.2%.
Overall, stocks are off to a strong start for the year. Through 13 sessions, the S&P 500 has closed lower just five times and is up 2.8%.
Mark Newton, managing member at Newton Advisors, said the overall market trend is "still bullish" and there is "insufficient evidence of weakness to turn negative.