December 3, 2022

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Wall Street closed higher, boosted by gains in technology stocks, thanks to upbeat earnings

Wall Street ends lower as hot inflation data raises odds of Fed rate hike
  • Netflix gains on customer growth expectations
  • Baker Hughes falls into a larger quarterly loss
  • Tesla announces earnings after market close
  • Indexes up: Dow 0.15%, S&P 500 0.59%, Nasdaq 1.58%

July 20 (Reuters) – US stocks closed higher on Wednesday, with the Nasdaq tech index posting a 1.6% gain thanks to positive earnings signals with an eye on inflation and further interest rate hikes by the Federal Reserve.

Netflix (NFLX.O) Shares rose 7.4% after the company expected it would return to customer growth during the third quarter, while posting a less-than-expected drop of 1 million subscribers in the second quarter. Read more

Other high-growth stocks extended gains following expectations from the streaming service provider. Shares of Apple Inc (AAPL.O)Amazon.com Inc (AMZN.O)Microsoft Corporation (MSFT.O) and Meta Platforms Inc (META.O) It rose between 1% and 4.2%.

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Electric vehicle maker Tesla Inc (TSLA.O) It rose 2% in extended trade after reporting a rise in quarterly earnings after the bell. Read more

“Stock prices are trending in an accelerating fashion, and they are now at the mercy of inflation, interest rates and earnings,” said Terry Sandvin, chief equity strategist at US Bank Wealth Management.

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

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

Hyperinflation initially prompted markets to raise interest rates by 100 basis points at the next meeting of the Federal Reserve next week, until some policymakers signaled a 75 basis point increase.

Dow Jones Industrial Average (.DJI) The Standard & Poor’s 500 Index rose 47.79 points, or 0.15%, to 31,874.84 points (.SPX) It rose 23.21 points, or 0.59%, to 3959.9 points, and the Nasdaq Composite (nineteenth) It added 184.50 points, or 1.58%, to 11,897.65 points.

Seven of the 11 major S&P 500 sectors posted gains, with consumer appreciation (.SPLRCD) and information technology (.SPLRCT)Post the biggest gains.

Trading remained choppy in thin volumes, with the CBOE Volatility Index (.VIX) It closed at 23.79 points to its lowest in nearly three months.

Volume on US stock exchanges was 11.51 billion shares compared to an average of 11.43 billion for the full session over the last 20 trading days.

“Low volumes highlight market movements historically, and although we surveyed 10 or 15 trillion dollars of global equities this year, there is still a lot of excess liquidity. So lower volumes of excess liquidity can highlight movements,” John Lynch, chief investment officer said. Officer at Comerica Wealth Management.

Baker Hughes Co slipped 8.3% as the biggest loss for the S&P index, as the oilfield services provider reported an even bigger loss in the second quarter, while its adjusted earnings also missed estimates. Read more

Advance issues outnumbered decliners on the New York Stock Exchange by 1.94 to 1; On the Nasdaq, a 2.28 to 1 ratio favored advanced stocks.

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

Additional reporting by Eko Wang in New York and Shreyachi Sanyal in Bengaluru; Additional reporting by Anirudha Ghosh in Bengaluru. Editing by Sriraj Kalovila, Shunak Dasgupta and Lisa Shumaker

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