The stock markets in New York managed to recover further on Tuesday after the turbulent stock market trading of last week. The strong start to the quarterly earnings season seems to give investors confidence that the business community will continue to perform well despite the deteriorating economic outlook.
For example, Goldman Sachs was up more than 5 percent. The major US investment bank performed better than analysts had expected last quarter.
On Monday, better-than-expected results from Bank of America already fueled optimism in equity markets. Pharmaceutical company Johnson & Johnson and defence group Lockheed Martin (plus 2 percent) also released the results before the fair. After the closing bell, streaming service Netflix (plus 0.1 percent) opens the books. Netflix already gained 7 percent on Monday thanks to an advice increase by analysts from Wells Fargo.
Shortly after the start of trading, the Dow Jones index rose 2.1 percent at 30,812 points. The broad S&P 500 rose 2.2 percent to 3755 points. The Nasdaq rose 2.3 percent to 10,926 points. The tech gauge already gained 3.4 percent a day earlier. That was the largest daily profit since July 27.
Johnson & Johnson (minus 1.6 percent), the company behind the Janssen corona vaccine, recorded more sales and profits in the third quarter than analysts and investors had expected. However, the company lowered its forecast for revenue growth for the full year. Supermarket group Target rose almost 7 percent thanks to a buy recommendation by analysts from investment bank Jefferies.
Hasbro slumped slightly. The game and toy manufacturer saw its third-quarter profit fall more than expected. The company behind brands such as My Little Pony, Monopoly, Magic: The Gathering and Dungeons & Dragons, among other things, suffered from high inflation, making consumers more cautious with their spending. The more expensive dollar also played tricks on the company.
Chipmaker Intel rose 1 percent. The introductory price of Mobileye, the part of Intel that makes cameras for self-driving cars and is listed separately, is set at 18 to 20 dollars per share. Mobileye will be valued at approximately $16 billion. Intel bought the company in 2017 for more than 15 billion dollars and then took it off the stock exchange.