Better-than expected quarterly results combined with a couple of
positive domestic reports guided the benchmarks into the green
yesterday. Encouraging quarterly results buoyed hopes about a
favorable third-quarter earnings season. The bullish sentiment
helped the Dow post its biggest gain since September 13.
Separately, the U.S. government released data on the consumer price
index and industrial production.
The Dow Jones Industrial Average (DJI) rose 1.0% to close the
day at 13,551.78. The Standard & Poor 500 (S&P 500) climbed
1.0% to finish yesterday's trading session at 1,454.92. The
tech-laden Nasdaq Composite Index surged 1.2% to end at 3,101.17.
The fear-gauge CBOE Volatility Index (VIX) lost 0.3% to settle at
15.22. Consolidated volumes on the New York Stock Exchange,
American Stock Exchange and Nasdaq were roughly 6.2 billion shares,
slightly lower than the year-on-year daily average of 6.51 billion
shares. Advancing stocks outran the declining stocks on the NYSE by
a ratio 3 to 1.
Benchmarks rallied throughout the day and enjoyed back-to-back
gains. Following yesterday's gains, the S&P 500 registered its
best two day advance in a month. While the market sentiment had
been on the cautious side before the start of this earnings season,
so far we have witnessed some encouraging results from market
Among the encouraging results released yesterday, Johnson &
) came out with strong third quarter results, boosted by higher
revenues. The company's shares surged 1.4% after posting
better-than-expected quarterly results. Johnson & Johnson also
increased its full-year profit outlook. The strong results also
helped the healthcare sector add gains and the Health Care SPDR
surged 1.1%. Stocks such as Watson Pharmaceuticals, Inc. (NYSE:
), Mylan Inc. (NASDAQ:
), Amgen, Inc. (NASDAQ:
) and Pfizer Inc (NYSE:
) rose 2.5%, 0.3%, 2.1% and 0.9%, respectively.
Meanwhile, financial bellwether Goldman Sachs Group, Inc. (NYSE:
) also reported its quarterly results that surpassed analysts'
estimates. The company also announced an 8.7% increase in its
dividend. However, equity trading revenues dropped 16.0% from the
prior year. Despite the record revenues, the company's shares
dipped 1% yesterday. So far, earnings from financial bellwethers
like JPMorgan Chase & Co. (NYSE:
), Wells Fargo & Company (NYSE:
) and Citigroup Inc. (NYSE:
) have been decent enough. Early this week, Citigroup reported
strong third-quarter numbers and its shares jumped 5.5% on Monday.
However, Vikram Pandit, the chief executive officer of Citigroup,
yesterday announced that he is stepping down from his position.
Following back-to-back encouraging results from financial
bellwethers, the financial sector had a good run yesterday. Stock
such as Citigroup, JPM, Morgan Stanley (NYSE:
) and Bank of America Corp (NYSE:
) climbed 1.6%, 1.1%, 0.7% and 0.2%, respectively.
Coming to domestic news, the U.S. government released its latest
industrial production data, which revealed that industrial
production has increased by 0.4% in the month of September, beating
consensus estimates of 0.2%. However, industrial production for the
third-quarter decreased at an annual rate of 0.4%. The production
of consumer goods remained unchanged, but manufacturing output rose
0.2% in September, while it declined 0.9% in the third quarter.
Separately, the U.S. Bureau of Labor Statistics released
consumer price index data, which revealed that CPI has increased by
0.6% in September on a seasonally adjusted basis, beating consensus
estimates of 0.5%. The gasoline index rose 0.7% in September after
increasing 0.9% in August. This was the primary reason behind the
increase in CPI. Excluding food and energy prices, core CPI
increased 0.1%, lower than the consensus estimate of 0.2%.
Coming to the sectors, the Energy Select Sector SPDR surged 1.6%
after the American Petroleum Institute (API) reported a
better-than-expected rise in oil supply. According to the API
report, crude oil supply rose 3.7 million barrels for the week
ended October 12. This provided a boost to energy stocks. Stocks
such as Exxon Mobil Corporation (NYSE:
), Chevron Corporation (NYSE:
), TOTAL S.A. (NYSE:
), BP plc (NYSE:
) and Marathon Oil Corporation (NYSE:
) rose 1.0%, 1.1%, 2.7%, 1.8% and 2.6%, respectively.
AMGEN INC (AMGN): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis
BP PLC (BP): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
MORGAN STANLEY (MS): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis
WATSON PHARMA (WPI): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
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