Major Wall Street indices rallied on Thursday, boosted by tech stocks and strong quarterly results from Bank of America and Walgreens, while better-than-expected economic data eased some concerns about rising inflation.
At 12:08 p.m. ET, the Dow Jones Industrial Average was up 499.56 points, or 1.45%, to 34,877.37, the S&P 500 was up 67.63 points, or 1.55%, at 4,431.43, and the Nasdaq Composite was up 237.63 points, or 1.63. %, at 14,809.26.
Citigroup, Bank of America Corp and Morgan Stanley beat quarterly profit estimates, helped by the release of more reserves to cover loan losses, with steamy deals, equity financings and business activities boosting their profits.
Their stocks gained between 0.1% and 3.3%. Walgreens Boots Alliance Inc jumped 5.9% to surpass the S&P 500 and the Dow, after the drugstore chain reported fourth quarter revenue and adjusted profit above estimates and forecast 11% growth to 13 % long-term.
“The strength of the market today is based in part on better-than-expected earnings,” said Andre Bakhos, managing director of New Vines Capital LLC in Bernardsville, New Jersey.
The top 11 S&P sectors all advanced, nine of them gaining more than 1%. The Russell 2000 Small Cap Index added 1.3%.
The biggest boost came from growth names such as Facebook Inc, Microsoft Corp, Apple Inc and Google’s parent Alphabet, which rose more than 1%.
“There seems to be a bit of FOMO (fear of running out), but there is a widening of the markets, buyers are entering stocks generally, and arguably, that’s a healthy thing,” Augustine said. , chief investment officer at Huntington Private Bank.
Analysts expect U.S. companies to post strong quarterly profit growth and will focus on comments from companies on how they will tackle rising costs, labor shortages and disruption of the supply chain.
Meanwhile, data showed that the number of Americans filing new jobless claims fell near a 19-month low last week, while a separate report showed prices at the production had fallen in September.
The reports came a day after consumer prices rose solidly in September, further strengthening the case for an interest rate hike by the Federal Reserve.
“(Unemployment claims) turned out to be better than expected, which is good … however, we find ourselves in a situation where, if the labor market improves rapidly, investors will see it as a hawkish for the rates, ”Bakhos said.
UnitedHealth Group Inc jumped 4.3% after the health insurer raised its full-year adjusted profit forecast thanks to its Optum unit which manages pharmaceutical benefits.
Rising issues outnumbered declines by a 4.07-to-1 ratio on the NYSE and by a 2.37-to-1 ratio on the Nasdaq.
The S&P Index recorded 29 new 52-week highs and no new lows, while the Nasdaq recorded 61 new highs and 28 new lows.