Stocks moved up in early trading on Wall Street Wednesday
as investors reviewed another round of earnings reports from several big
The S&P 500 rose 34.54 points or 0.84% to 4,125.73 as
of 10:18 am Eastern time. The Dow Jones Industrial Average rose 152.63 points
or 0.47% to 32,548.80. The Nasdaq rose 192.37 points or 1.56% to 12,541.12. The
gains helped the indexes recover most of this week’s losses.
Technology companies, communications, and retailers were
the biggest gainers this morning. Sectors considered less risky, such as
consumer goods makers and utilities, were trading in the red.
Bond yields moved higher. The yield on the 10-year Treasury
increased to 2.82% from 2.73% late Tuesday.
Financial reports remain in focus this week as investors
review the latest results and statements from corporates to better understand
how inflation is affecting businesses and consumers.
Shares of drugstore chain CVS rose 4.6% after the company
reported strong financial results and raised its profit outlook for the year.
Starbucks also added 1.2% after reporting robust growth in earnings. About 75%
of the companies within the benchmark S&P 500 have reported earnings for
the latest quarter and the results have mostly beaten analysts’ forecasts.
However, several companies have reported disappointing
results as well. Taco Bell owner Yum Brands slipped 3.1% after reporting weak
results. Online dating service company Match Group lost nearly one-fifth of its
value after giving investors a weak financial forecast.
PayPal surged 11% following a report that activist investor
Elliott Management has acquired a large stake in the payment company.
Robinhood Markets jumped 15.4% after it announced that it’s
cutting nearly a quarter of its workforce. Crashing cryptocurrency prices and a
turbulent stock market have kept more customers off its app.
Oil prices remained mostly unchanged after OPEC’s decision
to boost production in September at a much slower pace than in previous months.
Markets are closely watching for possible economic fallout
from China after US House Speaker Nancy Pelosi’s visit to Taiwan. China claims
self-ruled Taiwan as part of its territory and banned imports of Taiwanese
citrus fruits and frozen fish in retaliation for Pelosi’s visit. However, it
has avoided disrupting the flow of computer chips and other industrial goods, a
step that could push the global economy.
The government will release its July jobs report on Friday.
The data could help investors determine whether the Federal Reserve will move
ahead with its interest rate policy, which has been aggressive in an effort to
try and tame inflation. US jobless claims number for last week will be released