Wall Street closes higher buoyed by tech stock gains on bullish earnings

Wall Street closes higher buoyed by tech stock gains on bullish earnings
Written by admin

  • Netflix wins customer growth forecast
  • Baker Hughes falls with biggest quarterly loss
  • Tesla to report earnings after market close
  • Indices up: Dow 0.15%, S&P 500 0.59%, Nasdaq 1.58%

July 20 (Reuters) – U.S. stocks closed higher on Wednesday on the tech-heavy Nasdaq, posting a 1.6% gain on signs of positive earnings with a cautious look at inflation and more rate hikes. interest rates from the Federal Reserve.

Netflix Inc. (NFLX.O) shares added 7.4% after the company forecast it would return to customer growth in the third quarter, while posting a smaller-than-expected drop in subscribers of 1 million in the second quarter. read more

Other high-growth stocks extended their gains following the streaming service provider’s forecast. Apple Inc stock (AAPL.O) Inc. (AMZN.O)Microsoft Corporation (MSFT.O) and Meta Platforms Inc. (META.O) increased between 1% and 4.2%.

Sign up now for FREE unlimited access to

Electric vehicle manufacturer Tesla Inc. (TSLA.O) rose 2% in extended trading after reporting a rise in quarterly earnings after the bell. read more

“Stock prices are on a rollercoaster ride, currently at the mercy of inflation, interest rates and earnings,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.

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

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

Rampant inflation initially prompted markets to price in a full 100 basis point increase in interest rates at the Fed’s next meeting next week, until some policymakers signaled a 75 basis point increase.

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

Seven of the top 11 S&P 500 sectors gained ground, with consumer discretionary (.SPLRCD) and information technology (.SPLRCT)posting the highest profits.

Trading remained volatile on low volumes, with the CBOE Volatility Index (.VIX) it closed at 23.79 points, its lowest level in almost three months.

Volume on US stocks was 11.51 billion shares, compared to the 11.43 billion average for the full session over the past 20 trading days.

“Historically, low volumes accentuate market moves, and even though we’ve wiped $10 or $15 trillion out of global equities this year, there’s still a lot of excess liquidity. So low volume on excess liquidity can still accentuate movements,” John Lynch, chief investment officer. Comerica Wealth Management official said.

Baker Hughes Co fell 8.3% as S&P’s biggest percentage loser, as the oilfield services provider reported a bigger loss in the second quarter, while its adjusted profit also missed estimates. read more

Advancing issues outnumbered declining issues on the New York Stock Exchange by a ratio of 1.94 to 1; on Nasdaq, a ratio of 2.28 to 1 favored advancers.

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

Sign up now for FREE unlimited access to

Reporting from Echo Wang in New York and Shreyashi Sanyal in Bangalore; Additional reporting by Aniruddha Ghosh in Bengaluru; Edited by Sriraj Kalluvila, Shounak Dasgupta, and Lisa Shumaker

Our standards: The Thomson Reuters Trust Principles.

About the author


Leave a Comment