Tech stocks bolster Wall Street after mixed bank results

In this news, we discuss the Tech stocks bolster Wall Street after mixed bank results.

(Reuters) – Major Wall Street indices edged up on Wednesday, supported by tech stocks, as investors analyzed a mixed set of quarterly earnings reports from major U.S. banks.

Goldman Sachs rose 0.6%, as strong trading activity helped quarterly profit rise 94%. Bank of America slipped 2.5% after missing revenue estimates and Wells Fargo fell 3% as profits fell below expectations.

The S&P 500 banks index fell 0.2%.

Analysts expect financial sector profits to fall 12.1% in the third quarter from a year ago, while companies in the S&P 500 are expected to post a 19.6% drop in profits, according to data from Refinitiv IBES.

“The markets are ready for the earnings season, which should once again show that Corporate America is doing a little better than people expected,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, in North Carolina.

Technology shares climbed 0.6% as Apple Inc firmed about 1% after slipping in an event on Tuesday when the company launched its next gen iPhone 12.

Qualcomm Inc gained 2.2% as several brokerage firms raised their price targets for the chipmaker’s shares.

A standoff over a COVID stimulus bill in Washington has also kept the mood in check. Senate Majority Leader Mitch McConnell said the Republican-led Senate would vote next week on a targeted $ 500 billion coronavirus aid bill of the type Democrats have already rejected after ‘they expect trillions of relief.

Weakening hopes for a federal aid deal, halting COVID-19 vaccine and treatment trials pushed major Wall Street indices back from their one-month highs Tuesday, although losses on the Nasdaq were limited as outperforming tech mega-caps.

Investors expect more help after the November 3 presidential election in case Congress fails to come to an agreement within the next three weeks.

The widening of Democratic candidate Joe Biden’s lead in national opinion polls has also been positive for markets, with investors expecting more infrastructure spending and less global trade uncertainty, said strategists and fund managers.

As of 9:44 a.m. ET, the Dow Jones Industrial Average was up 55.65 points, or 0.19%, to 28,735.46, the S&P 500 was up 11.65 points, or 0.33%, at 3,523.58. The Nasdaq Composite rose 62.71 points, or 0.53%, to 11,926.61.

UnitedHealth Group Inc fell 1.8% despite increasing its profit forecast, as the U.S. insurer said it was difficult to predict the impact of the COVID-19 pandemic on earnings.

Concho Resources Inc jumped 14% after a report that oil producer ConocoPhillips was in talks to acquire the shale producer.

Rising issues outnumbered declines by a 1.95 to 1 ratio on the NYSE and a 1.72 to 1 ratio on the Nasdaq.

The S&P Index recorded 11 new 52-week highs and no new lows, while the Nasdaq recorded 64 new highs and two new lows.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty

Original © Thomson Reuters

Originally posted 2020-10-14 07:36:10.

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