Wall St rose as Goldman, J&J results lifted earnings mood; Nasdaq up 2%

Major global stocks rallied for a second straight session on Tuesday, with sentiment softened after the UK’s controversial budget cuts and after a string of strong US earnings. Many US companies are reporting solid profits in the most recent quarter, including Goldman Sachs and Johnson & Johnson. The investment bank rallied 5% after delivering results that beat estimates.

Above Wall Street, the Dow Jones rose 2% at the open after a strong trading day in Asia and Europe, as several major banks updated with healthy data. The S&P 500 rose 68.3 points, or 1.86%, to open at 3,746.26, while the Nasdaq Composite added 288.2 points, or 2.70%, to 10,963.98 at the open.

Analysts point to better-than-expected reports from Goldman Sachs and Johnson & Johnson as a positive driver for equities, along with changing investor sentiment.

Goldman Sachs reported lower profit in its results today, but the company still topped analyst expectations for strong trading revenue.

It followed positive earnings news from Bank of America on Monday, days after JPMorgan Chase and others also recorded solid numbers.

Johnson & Johnson, which brings in nearly half of its sales from outside the US, beat third-quarter expectations but narrowed its 2022 forecast range due to a stronger dollar. Shares rose 1.7% before the bell.

“Better-than-expected US earnings reports ignited a rally on Wall Street with positive momentum reverberating across European markets,” said Interactive Investor analyst Victoria Scholar. AFP.

“Risk appetite is growing after a volatile week for the market, as corporate results are seen as a key driver of today’s price action.”

Treasury achieved

Treasuries rose, making yields lower across the board, while Bloomberg the gauge of the greenback slipped. The pound weakened after the Bank of England denied a report that it was delaying the sale of government bonds until markets calmed down.

Sentiment towards riskier assets has been boosted by positive corporate results, cheaper valuations have attracted buyers and after policy reversals have eased concerns about the UK market. But with headwinds from inflation, risks to the economy and hawkish central bankers continuing to confront investors, there’s debate over how long-term the returns will prove.

“There is still a strong sense of a bear market rally in trading throughout the last week,” said Craig Erlam, analyst at Oanda Europe Ltd., Craig Erlam. Senior market analyst at Oanda Europe Ltd. Inflation and interest rates are at their peak yet to be priced in. Those are significant headwinds that will make any stock market rally extremely challenging. “

Bank of America says sentiment towards stocks and global growth among the fund managers it surveyed indicates adequate speculation, paving the way for a stock rally in 2023. monthly of the bank’s global fund manager “calls for macro investment, investment capital investment, policy investment initiation”. Strategists led by Michael Hartnett wrote in a note on Tuesday. They expect stocks to bottom out in the first half of next year after the Federal Reserve finally pivoted away from raising interest rates.

The British pound weakened 0.3% after the BOE said a Financial Times report that the central bank was pushing back when to begin quantitative tightening was “inaccurate.”

The yen pauses in its run towards the closely watched 150-per-dollar level, which has investors on high alert for possible intervention. Japanese Finance Minister Shunichi Suzuki said he was monitoring market developments with a sense of urgency.

Elsewhere, oil transitioned between gains and losses as traders weighed the tightening market on fears of a global recession. Gold is also volatile and Bitcoin continues to trade below $20,000.

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