Technology stocks, strong earnings lead Wall Street rally

by Jonathan Adams
Wall Street rally

The Dow Jones Industrial Average was up 499.56 points at 34,877.37, the S&P 500 was up 67.63 points at 4,431.43, and the Nasdaq Composite was up 237.63 points, at 14,809.26

Wall Street’s main indexes rallied on Thursday, boosted by technology stocks and strong quarterly results from Bank of America and Walgreens, while better-than-expected economic data eased some concerns about higher inflation.

The Dow Jones Industrial Average (DJIA) was up 499.56 points, or 1.45%, at 34,877.37, the S&P 500 was up 67.63 points, or 1.55%, at 4,431.43, and the Nasdaq Composite was up 237.63 points, or 1.63%, at 14,809.26.

Citigroup, Bank of America Corp and Morgan Stanley topped quarterly earnings estimates, helped by release of more reserves to cover loan losses, with torrid dealmaking, equity financing and trading activity adding to their profits.

Their shares gained between 0.1% and 3.3%. Walgreens Boots Alliance Inc climbed 5.9% to top the S&P 500 and the Dow, after the drugstore chain reported fourth-quarter revenue and adjusted profit above estimates and forecast growth of 11% to 13% in the long term.

The market strength today is partly predicated on better than expected earnings, said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

All of the 11 major S&P sectors advanced, with nine of them adding more than 1%. The small cap Russell 2000 index gained 1.3%.

The biggest boost came from growth names including Facebook Inc, Microsoft Corp, Apple Inc and Google-parent Alphabet, which added more than 1%.

There seems to be a little bit of FOMO (fear of missing out), but there’s a broadening out in markets, the buyers are coming into stocks broadly, and arguably, that’s a healthy thing, said John Augustine, chief investment officer at Huntington Private Bank.

Analysts expect corporate America to report strong quarterly profit growth and will focus on commentary from companies on how they are going to battle rising costs, labour shortages and supply chain disruptions.

This article is for information purposes only.
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