US Markets

US STOCKS-Apple, healthcare stocks help Wall St shrug off Delta worries

Credit: REUTERS/ANDREW KELLY

Wall Street's main indexes rose on Tuesday on gains in Apple and healthcare stocks, even though concerns around a surge in the Delta variant of the coronavirus took some shine off an upbeat corporate earnings season.

By Echo Wang

Aug 3 (Reuters) - Wall Street's main indexes rose on Tuesday on gains in Apple and healthcare stocks, even though concerns around a surge in the Delta variant of the coronavirus took some shine off an upbeat corporate earnings season.

Ten of the 11 S&P indexes traded higher, with energy stocks .SPNY rebounding after getting hit by a dip in oil prices O/R.

“We've been dealing with a tug of war between what has been a very strong economic recovery consistent with the reopening and that's playing out through corporate earnings," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Minneapolis. He also noted "concerns about the renewed mitigation efforts that are being put in place around the new variants to the COVID-19 virus.”

Apple Inc AAPL.O rose 1.57% after sliding last week. Other heavyweight technology stocks, including Netflix Inc NFLX.O, Tesla Inc TSLA.O and Facebook Inc FB.O continued to edge lower, capping gains on the tech-heavy Nasdaq.

A clutch of U.S. companies, including industrial materials maker Dupont DD.N and Discovery Inc DISCA.O, reported better-than-expected quarterly results, but their shares fell as investors booked profits amid lofty stock valuations.

Rising cases of the Delta variant and signs that the domestic economic rebound has begun to slow have knocked the three main U.S. stock indexes off record highs, while a deepening regulatory scrutiny in China has sent jitters through the global technology sector.

Shares in U.S.- and European-listed gaming companies fell between 2.8% and 4.6% after a steep sell-off in China's social media and video games group Tencent 0700.HK, driven by fears the sector could be next in regulators' crosshairs.

"Grand Theft Auto" creator Take-Two Interactive Software Inc TTWO.O plunged 9.58% after it issued a disappointing sales forecast.

By 2:07 p.m. ET, the Dow Jones Industrial Average .DJI rose 218.3 points, or 0.63%, to 35,056.46, the S&P 500 .SPX gained 27.77 points, or 0.63%, to 4,414.93 and the Nasdaq Composite .IXIC added 41.91 points, or 0.29%, to 14,722.98. By 1:55PM ET, the Dow Jones Industrial Average .DJI rose 210.88 points, or 0.61%, to 35,049.04, the S&P 500 .SPX gained 26.97 points, or 0.61%, to 4,414.13 and the Nasdaq Composite .IXIC added 49.52 points, or 0.34%, to 14,730.59.

Data on Tuesday showed U.S. factory orders rose 1.5% in June after a 2.3% increase in the previous month. Economists polled by Reuters had expected a rise of 1% in June.

Later in the week, focus will shift to data on the U.S. services sector and the monthly jobs report for July.

In M&A-driven moves, Translate Bio TBIO.O surged 28.99% after France's Sanofi SASY.PA agreed to buy the U.S. biotech company in a $3.2 billion deal.

Under Armour Inc UA.N and Ralph Lauren Corp RL.N jumped 5.5% and 6.8%, respectively, after raising their annual revenue forecasts.

Overall, earnings at S&P 500 firms are estimated to have climbed about 90% in the second quarter versus forecasts of 65.4% at the start of July, according to IBES data from Refinitiv.

Advancing issues outnumbered declining ones on the NYSE by a 1.21-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored decliners.

The S&P 500 posted 59 new 52-week highs and three new lows; the Nasdaq Composite recorded 81 new highs and 96 new lows.

(Reporting by Echo Wang; additional reporting by Sagarika Jaisinghani, Sruthi Shankar and Shashank Nayar in Bengaluru; Editing by Arun Koyyur and Dan Grebler)

((Echo.wang@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAPL NFLX TSLA FB DD DISCA TTWO SPX UA RL UAA

Other Topics

Commodities

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More