STOCK MARKET NEWS: Investors see earnings, Netflix jumps and sobering housing data

U.S. stocks were trading higher early Wednesday morning after indices posted their biggest one-day gains in nearly a month on Tuesday, when investors reacted positively to a fresh batch of corporate earnings reports.

The S&P 500 added 105.84 points, or 2.8%, to end the day at 3936.69. The technology-focused Nasdaq Composite gained 353.10 points, or 3.1%, to 11713.15, and the Dow Jones Industrial Average rose 754.44 points, or 2.4%, to 31827, 05.

All three indices posted their biggest one-day point and percentage gains since June 24. They are up more than 6% from their mid-June lows, but remain down sharply for the year.

Investors analyze earnings reports to determine how decades-high inflation is affecting corporate profits and consumer spending. Economists have raised the estimated probabilities of a US recession in the next 12 months, fearing that higher interest rates introduced by the Federal Reserve to curb inflation could weigh on growth.

Some investors, however, are on the lookout for signs from executives that the economic picture may not be as bleak as feared.

“When you look at what’s happening in the real economy through the lens of our customers, I’d say it’s less than 50/50 that we end up with a recession at this point,” said Bruce Van Saun, CEO of Citizens Financial Group. , which reported better-than-expected earnings on Tuesday.

Investors view bank earnings as a good way to determine the trajectory of the broader economy, as their companies closely monitor the health of consumers and businesses.

Toy company Hasbro rose 0.7% after reporting a higher-than-expected profit by analysts. Oil services provider Halliburton added 2.1% after its profit and revenue beat forecasts.

Netflix jumped 8% in after-hours trading after the company reported better-than-expected results and less subscriber loss than analysts feared.

Twitter rose 2.8% after a Delaware court agreed to quickly plan a lawsuit that could force billionaire Elon Musk to honor his agreement to buy the company.

Meanwhile, Asian stocks rose on Wednesday as Tokyo’s Nikkei 225 jumped 2.5% to 27,631.50 while Hong Kong’s Hang Seng gained 2% to 21,068.85.

In Seoul, the Kospi added 1% to 2,395.19. Australia’s S&P/ASX 200 climbed 1.7% to 6,765.00, while the Shanghai Composite Index rose 0.7% to 3,301.25.

Shares also rose in India and Taiwan.

China’s central bank kept its prime lending rate steady despite the latest data showing a significant slowdown in growth in the last quarter, when pandemic-related shutdowns in many cities slowed businesses and other activities.

Comments are closed.