Wall Street closes higher as investors digest earnings, mega cap outlook…..
U.S. stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other mega cap growth stocks. Tesla kicked off the earnings cycle for technology heavyweights after markets close on Tuesday. That will be followed by results from other tech majors, including Microsoft, Alphabet , and Meta Platforms , later this week. Markets were also buoyed by upbeat earnings from companies such as General Motors , which closed up after the automaker’s better-than-expected quarterly results.
Ten out of 11 S&P 500 sectors were advancing led by gains in equities in communication services <.SPLRCL> and technology <.SPLRCT> sectors. The S&P Materials sector <.SPLRCM> ended lower dragged by steelmaker Nucor Corp , which lost ground after a first-quarter earnings miss. According to preliminary data, the S&P 500 <.SPX> gained 58.81 points, or 1.17%, to end at 5,069.41 points, while the Nasdaq Composite <.IXIC> gained 245.34 points, or 1.59%, to 15,696.64. The Dow Jones Industrial Average <.DJI> rose 267.19 points, or 0.70%, to 38,494.32.
Data on Tuesday showed that U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting possible relief ahead for rising consumer prices. Investors will be eyeing the release of the March Personal Consumption Expenditures (PCE) index – the Federal Reserve’s preferred inflation gauge – which is due on Friday. Money markets are now pricing in just about 43 basis points of interest-rate cuts, down from about 150 bps seen at the start of the year, according to LSEG data.
Spotify surged after the Swedish music streaming giant posted gross profit topped 1 billion euros ($1.1 billion) for the first time. Bullish full-year profit forecast helped to lift GE Aerospace shares. Danaher gained after the life sciences firm beat quarterly profit and sales expectations. Shares of JetBlue plunged as the low-cost carrier trimmed its annual revenue forecast following lukewarm first-quarter revenue.
Reporting Chibuike Oguh in New York; additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Aurora Ellis.
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