US stocks rise with earnings in focus
18 Oct 2022 10:30am
Image for illustrative purposes only - sinar archive
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The Dow Jones Industrial Average rallied 550.99 points, or 1.86 per cent, to 30,185.82. The S&P 500 was up 94.88 points, or 2.65 per cent, to 3,677.95. The Nasdaq Composite Index increased 354.41 points, or 3.43 per cent, to 10,675.80.
All the 11 primary S&P 500 sectors ended in green, with consumer discretionary and real estate up 4.23 per cent and 3.89 per cent, respectively, leading the advance.
Shares of Bank of America surged 6.06 per cent after the company reported third-quarter earnings that beat market estimates.
The Bank of New York Mellon Corporation also delivered better-than-expected earnings, sending the stock up more than 5 per cent.
High-profile tech companies including Netflix and Tesla are on deck to report later this week.
US equities have been under considerable pressure this year amid growing fears that the Federal Reserve's aggressive policy tightening to tame inflation would tip the economy into a recession.
For the week ending Friday, the Dow rose 1.2 per cent, while the S&P 500 and the Nasdaq fell 1.6 per cent and 3.1 per cent, respectively.
"Given the intensifying economic headwinds and the continued march higher in Fed rate hiking expectations, it appears likely that corporate profits will contract in the coming quarters," UBS analysts said Monday in a note.
"On the heels of our lower outlook for corporate profits, we reduce our June 2023 S&P 500 price target from 4,200 to 3,700 and introduce a year-end 2023 price target of 4,000," they said.
Meanwhile, US-listed Chinese companies traded higher on Monday, with all the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on an upbeat note.
Shares of BeiGene and Alibaba Group Holding surged 7.05 per cent and 5.14 per cent, respectively, leading the gains in the top 10 stocks.
Shares of JD.com and Yum China Holdings climbed 4.98 per cent and 4.86 per cent, respectively, also among the best performers.
The Cboe Volatility Index, widely considered as the best fear gauge in the stock market, dipped 2.03 per cent to 31.37.
As of Friday, the S&P US Listed China 50 index, which is designed to track the performance of the 50 largest Chinese companies listed on US exchanges by total market cap, stood at 2,104.91, marking an 11.71-per cent decrease for the month-to-date returns and a 29.33-per cent loss for the year-to-date returns. - BERNAMA
