- Technology-related stocks rise
- Profits beat estimates, big banks boom
- UnitedHealth jumps to strong results
NEW YORK, Oct 14 (Businesshala) – US stocks rose on Thursday after strong results from companies including Morgan Stanley and UnitedHealth, while labor market and inflation data eased concerns about the outlook for higher rates.
The technology sector (.SPLRCT) gave the S&P 500 its biggest boost, with shares of Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O) rising.
Shares of Citigroup (CN), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) rose after topping quarterly earnings estimates. The rebounding economy allowed them to issue more cash they had set aside for pandemic losses, while sizzling deals, equity financing and trading added to profits. The S&P Bank Index (.SPXBK) jumped.
UnitedHealth Group Inc. (UNH.N) also climbed after the health insurer reported results and raised its full-year adjusted profit forecast on strength from its Optum unit that manages drug benefits.
Adding to the optimism, data showed the number of Americans filing new claims for unemployment benefits fell to near a 19-month low last week, and a separate report showed that producer prices eased in September.
Alan Lanz, president of Allen B. Lanz & Associates Inc., said, “Some of the things that worried the market in September, and even last week, as far as the inflation aspect and higher interest rates and in the delta version There has been a decrease, perhaps less.” An investment advisory firm based in Toledo, Ohio.
“It’s not like it’s all over, but at least on a temporary scale, you can make a case for it being headed in the right direction.”
According to preliminary data, the S&P 500 (.SPX) edged up 74.35 points, or 1.70%, to 4,438.15, while the Nasdaq Composite (.IXIC) edged up 248.97 points, or 1.71%, to 14,824.90. The Dow Jones Industrial Average (.DJI) rose 532.21 points, or 1.55%, to 34,910.02.
Gains were broad with all S&P 500 sectors.
Moderna Inc. (mRNA.o) shares boosters of its COVID-19 vaccine for Americans age 65 and older and those at high risk of serious illness by a panel of expert advisors from the US Food and Drug Administration. The shots were faster then more than recommended. .
Even in earnings, Walgreens Boots Alliance Inc (WBA.O) jumped after the drugstore chain’s fourth-quarter revenue and adjusted profit above estimates and forecast long-term growth of 11% to 13%.
US companies are expected to report strong quarterly profit growth for the third quarter, but investors are curious to know what they say about rising costs, labor shortages and supply problems.