(New York) Wall Street moved up sharply Tuesday after the opening, continuing the momentum of the previous day, supported by better than expected corporate results.
Around 10:20 a.m., the Dow Jones was up 1.83%, the NASDAQ 2.00% and the S&P 500 1.97%.
Monday, following a difficult last week for the financial markets, the Dow Jones had rebounded 1.86% to 30,185.82 points.
The tech-heavy NASDAQ climbed 3.43% to 10,675.80 points, its best daily score since July. The S&P 500 had gained 2.65% to 3677.95 points.
“Markets started the week with solid gains; Strong bank earnings and a positive UK market reaction to the government’s decision in London to roll back planned tax cuts have boosted optimism,” noted B. Riley Wealth analyst Art Hogan.
According to him, the scenario of business results in the second quarter, where they had surprised by their good bill while analysts expected worse, could be repeated in the third quarter.
“There is a credible possibility that history will repeat this scenario”, estimated Mr. Hogan, while all the major American banks have just announced results beyond expectations and several companies have also disclosed quarterly accounts. exceeding forecasts.
Shortly before the opening of the session, the US central bank (Fed) indicated that industrial production had increased slightly more than expected in September in the United States, rebounding after a slight decline in August.
It grew by 0.4%, better than the timid rise of 0.1% that was expected by analysts.
“We are witnessing this (Tuesday) morning the observation that the market is oversold in the short term and an awareness that it is time to change direction,” said Patrick O’Hare, of Briefing.com.
Goldman Sachs, the last major bank to announce its results, posted lower but better than expected accounts and announced a new reconfiguration of its activities.
The objective is in particular to increase the commissions drawn from asset and wealth management, which are less dependent on the vagaries of the economy than trading or investment banking activities.
In the third quarter, the bank’s net profit plunged 44% to $2.96 billion.
Reported per share, it was displayed at 8.25 dollars, above the expected 7.69 dollars.
If its turnover fell by 12%, to 11.98 billion dollars, it is also higher than analysts’ forecasts. The title of the investment bank climbed by 4.44%, followed by Morgan Stanley (+3.18%), JPMorgan (+2.30%) or Bank of America (+2.97%), all largely in positive territory like the day before.
The American laboratory Johnson & Johnson (J & J) posted higher than expected quarterly results, thanks in particular to the solid sales of several flagship drugs. The title, in strong progression before the opening on the futures contracts, yielded 0.30% around 2:20 p.m. GMT.
Weighted down by inflation, which forces its customers to change their purchasing priorities, the American toy manufacturer Hasbro presented disappointing quarterly results.
From July to September, the group’s turnover amounted to 1.7 billion dollars, down 15% year on year, while its net profit was 129.2 million dollars. collapsing by 49%.
The arms group Lockheed Martin (+3.04%) announced a net result per share stronger than anticipated by analysts, helped by its aeronautical division which manufactures the F-35 fighter planes. However, the company expects overall revenue to be flat for the full year.
After the stock market closes, investors will watch the results of Netflix and United Airlines.
Amazon (+2.45%) and Apple (+2.29%) led the rise in the technology sector (+1.97% as a whole), but the indices were initially driven by the financial sector (+2, 62%).
Bond yields were quiet, with that on ten-year Treasury bills posting at 3.97% versus 4.01% the previous day.