S&P 500, Dow gain on upbeat earnings reports; Facebook pressures Nasdaq

By Shreyashi Sanyal and Arjun Panchadar (Reuters) - The S&P 500 and Dow Jones indexes rose on Tuesday, as upbeat earnings reports eased concerns over the fallout from the fragile U.S.-China trade relationship, but Facebook pressured Nasdaq after the company was hit with an expanded New York-led probe. The benchmark S&P 500 index still hovered above 3,000 points, and was within striking distance of a record high hit in July, with Biogen Inc's 31% surge fuelling the index

Reuters October 23, 2019 01:05:30 IST
S&P 500, Dow gain on upbeat earnings reports; Facebook pressures Nasdaq

SP 500 Dow gain on upbeat earnings reports Facebook pressures Nasdaq

By Shreyashi Sanyal and Arjun Panchadar

(Reuters) - The S&P 500 and Dow Jones indexes rose on Tuesday, as upbeat earnings reports eased concerns over the fallout from the fragile U.S.-China trade relationship, but Facebook pressured Nasdaq after the company was hit with an expanded New York-led probe.

The benchmark S&P 500 index still hovered above 3,000 points, and was within striking distance of a record high hit in July, with Biogen Inc's 31% surge fuelling the index. The drugmaker announced a surprise plan to file for U.S. regulatory approval for its Alzheimer's treatment.

"I think the fact that we are encroaching on record territory in the face of all these issues speaks to the resilience of the domestic economy and more importantly the companies in the U.S.," said Mike Loewengart, vice president, investment strategy at E*TRADE Financial Corp.

Strong corporate earnings since last week have provided some respite to equity markets, which were rattled over the past few months by geopolitical worries and a slowing global economy.

Of the 98 S&P 500 companies that have reported results so far, over 80% of them beat Street estimates, according to data from Refinitiv. Still, analysts project the first earnings contraction since 2016.

Procter & Gamble Co gained 3.3%, after raising full-year forecasts and beating Wall Street estimates.

Harley-Davidson Inc jumped 7%. The motorcycle maker beat quarterly profit expectations, while United Technologies Corp gained 2.6% on a forecast raise.

But shares of McDonald's Corp slipped 4.1% and Travelers Cos Inc fell 7.1% on poor results.

The threat of tariffs on toys imported from China hit toymaker Hasbro Inc's quarterly profit as shipping and warehousing costs soared. Its shares fell 15.3% and were the biggest decliners among S&P 500 companies.

Facebook Inc fell 3.5% after New York Attorney General Letitia James said the state probe on allegations that the company put consumer data at risk and pushed up advertising rates has expanded to attorneys general from 47 states and territories.

At 12:48 p.m. ET, the Dow Jones Industrial Average <.DJI> was up 94.44 points, or 0.35%, at 26,922.08, while the S&P 500 <.SPX> rose 6.80 points, or 0.23%, at 3,013.52.

The Nasdaq Composite <.IXIC> was down 6.03 points, or 0.07%, at 8,156.96.

Energy stocks <.SPNY> jumped 2%, clocking the biggest gain among S&P 500 sectors, with oil majors Exxon Mobil Corp and Chevron Corp leading gains.

Data showed U.S. home sales fell more than expected in September as the market struggles with a dearth of properties for sale, especially for cheaper homes.

Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded 40 new 52-week highs and two new lows, while the Nasdaq recorded 68 new highs and 60 new lows.

(Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Arun Koyyur and Bernard Orr)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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