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Overnight Markets: Wall Street surges on upbeat earnings

Overnight Markets: Wall Street surges on upbeat earnings

Wall Street gained the most in more than six months on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data.

The Dow Jones Industrial Average rose 466 points, or 1.84%, to 25,716, the S&P 500 gained 50 points, or 1.82%, to 2,801 and the Nasdaq Composite added 182 points, or 2.45%, to 7,613.

Technology, which sold off heavily in the recent pullback, led the gains with 2.6% rise as all 11 major sectors were positive. Healthcare rose 2.5%.

Investors are expecting another strong quarter of corporate profits, hoping the reports can calm nerves following concerns over tariffs and rising bond yields.

In economic data, US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output.

In corporate earnings news, Goldman Sachs and Morgan Stanley reported better-than-expected quarterly profits, helped by strength in stock trading and equity underwriting. Goldman shares added 2.4%, while Morgan Stanley shares rose 5.3%.

In healthcare, shares of diversified product company Johnson & Johnson added 1.5%, while insurer UnitedHealth Group gained 4.0% following their respective quarterly reports.

Adobe shares surged 8.3% following the software company's analyst meeting, adding to the day's upbeat sentiment for tech.

On the negative side, BlackRock shares dropped 4.8% after the world's biggest asset manager reported its lowest sales of equity, bond and other long-term investments since the second quarter of 2016.

Shares of industrial distributor W W Grainger tumbled 13.6% after its report. Walmart shares rose 2.1% as its chief executive urged investors to revise their view of the company's business.

In Asia, shares gained on Wednesday in morning session following a strong bounce on Wall Street overnight.

In the mainland Chinese markets, the Shanghai composite added by 0.77% in early trade while the Shenzhen composite also saw gains of more than 0.77%.

In Japan, the Nikkei 225 advanced by 1.33% in morning trade, while the Topix index gained more than 1.43%. In South Korea, the Kospi also bounced higher by 1.2%. Australia’s ASX 200 traded up by 1.03%.

 

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