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US Stocks Higher on Solid Earnings     10/15 11:16

   Stocks marched higher in morning trading on Wall Street Tuesday after some 
of the nation's largest companies reported surprisingly good financial results.

   NEW YORK (AP) -- Stocks marched higher in morning trading on Wall Street 
Tuesday after some of the nation's largest companies reported surprisingly good 
financial results.

   The earnings reports from a mix of health care and financial companies gave 
the market direction after a wobbly Monday as investors weighed the impact of a 
truce in the U.S.-China trade war. The latest round of corporate earnings will 
give them a clearer picture of that long-running dispute's impact on the 
broader economy and various industries.

   Health care stocks led the market as insurer UnitedHealth Group and health 
care products company Johnson & Johnson raised their annual financial forecasts 
following third-quarter results that beat Wall Street expectations.

   Chipmaker Nvidia rose 4.7% and led technology stocks higher. 

   Solid financial results from JPMorgan Chase and Charles Schwab helped push 
financial stocks higher.

   Bond prices fell. The yield on the 10-year Treasury rose to 1.75% from 1.73% 
late Friday. Bond markets were closed Monday for Columbus Day.

   Utilities, real estate companies and makers of consumer goods all fell as 
investors regained an appetite for more risk. The sectors are considered 
safe-play holdings and usually lag the market when investors are more confident.

   Tuesday marks the beginning of a busy few days for corporate earnings. 
United Airlines Holdings will report later in the day and give investors an 
early glimpse into the health of the airline industry.

   Banks continue their earnings reports on Wednesday with Bank of America and 
PNC Financial. Railroad giant CSX, Netflix and IBM will also report results on 
Wednesday.

   KEEPING SCORE: The S&P 500 index rose 1.1% as of 11:15 a.m. Eastern time. 
The Dow Jones Industrial Average rose 271 points, or 1%, to 27,054. The Nasdaq 
rose 1.1%.

   OVERSEAS: European markets rose. The European Union said that a deal with 
Britain is still possible ahead of their expected separation on Oct. 31. The 
trading bloc said that Britain needs to move ahead with more compromises to 
seal an agreement.

   Markets in Asia were mixed. 

   EARNINGS WORRIES: The early batch of upbeat financial reports come amid 
broader concerns for another rough round of quarterly earnings reports as a 
wide range of industries absorb the impact of ongoing trade disputes and 
growing economic uncertainty. Corporate earnings are expected to contract by 
nearly 5% during the third quarter, according to FactSet.

   The dire prediction could soften as more companies report earnings. Similar 
forecasts were made ahead of both the first and second quarter reporting 
periods and companies in the S&P 500 managed to deliver only a modest 
contraction each time.

   Once again, analysts and investors will be listening closely to company 
forecasts for the rest of the year to gauge the economic impact of the 
U.S.-China trade war and other issues that could crimp economic growth.

   HEALTHY FORECASTS: UnitedHealth Group rose 8.3% after it hiked its 2019 
profit forecast. The nation's largest health insurance company said the 
addition of hundreds of clinics to its health care services business helped 
drive revenue and profit during the third quarter, both of which beat Wall 
Street forecasts.

   Johnson & Johnson, the world's biggest maker of health care products, rose 
1.8% after it also raised its profit forecast for the year following solid 
third quarter results. The company cited higher sales of key medicines for 
cancer and immune disorders.

   BANKS AT BAT: JPMorgan Chase rose 3.8% after the bank beat Wall Street's 
third quarter profit forecasts on growth from higher interest rates and solid 
performance from its investment banking business.

   Other major banks reported mixed results. 

   Goldman Sachs fell 1.5% after reporting a dive in third quarter profits on 
losses from some of its public investments and as it struggled to drum up 
advisory business.

   Citigroup rose 1.9% while Wells Fargo rose 1.3%. 


(CZ)

 
 
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