World Markets

US STOCKS-Wall Street gains after Apple, Boeing results

(For a live blog on the U.S. stock market, click LIVE/ ortype LIVE/ in a news window)

* Apple jumps on results as services business grows

* Boeing gains after upbeat earnings, 2019 deliveriesforecast

* Indexes up: Dow 0.98 pct, S&P 0.53 pct, Nasdaq 0.86 pct (Updates to open)

By Sruthi Shankar

Jan 30 (Reuters) - U.S. stocks jumped on Wednesday, asrelief after Apple Inc'sAAPL.O earnings and an upbeat reportfrom Boeing CoBA.N eased nerves as investors waited forupdates from the Federal Reserve and U.S.-China trade talks.

The iPhone maker's shares rose 4.3 percent after the companyreported a sharp growth in services business and Chief ExecutiveOfficer Tim Cook said trade tensions between the United Statesand China were easing. urn:newsml:reuters.com:*:nL1N1ZT1WM

The report assuaged worries after Apple earlier this monthcut its sales forecast for the current quarter on slowing demandin China, whose economy has been dragged down by a trade warwith the United States.

Boeing jumped 5.2 percent after the world's largestplanemaker forecast profit and cash flow expectations for thefull year well above analysts' estimates and said it expects todeliver around 900 commercial aircraft in 2019, up from 806deliveries last year. urn:newsml:reuters.com:*:nL3N1ZU4JI

"For Apple, there was certainly more focus on the weaknessin China and now investors seem more positive as a lot of thebad news had been factored in," said Scott Brown, chiefeconomist at Raymond James in St. Petersburg, Florida.

"Positive earnings are definitely encouraging for marketstoday."

Stocks have been marred in the past two sessions on fears of a slowdown in China hurting one of the longest U.S.expansions in history and weakening profits, after a series ofwarnings from U.S. bellwethers.

Though fourth-quarter earnings have largely exceeded WallStreet expectations, helping the S&P 500 gain about 13 percentfrom December lows, investors worry that the trade dispute couldadd to a global slowdown as the impact of U.S. corporate taxcuts fade.

Washington and Beijing officials are meeting next door tothe White House on Wednesday in the highest-level talks sinceU.S. President Donald Trump and Chinese President Xi Jinpingagreed to a 90-day truce in their trade war in December. urn:newsml:reuters.com:*:nL1N1ZU04Y

The Fed is scheduled to release its policy statement at 2p.m. ET. The central bank is not expected to adjust its policy,but the language in the statement will be scrutinized for signsof Chairman Jerome Powell's willingness to pause on interestrate hikes. urn:newsml:reuters.com:*:nL1N1ZT1OC

Fed policymakers have been clear they plan to be "patient"about further tightening in the face of an overseas slowdown andmarket volatility.

The S&P 500 banks index .SPXBK edged down 0.10 percent.

At 9:54 a.m. EDT the Dow Jones Industrial Average .DJI wasup 240.03 points, or 0.98 percent, at 24,819.99, the S&P 500 .SPX was up 13.87 points, or 0.53 percent, at 2,653.87 and theNasdaq Composite .IXIC was up 60.79 points, or 0.86 percent,at 7,089.08.

Seven of the 11 major S&P sectors were higher, led by a 1.47percent gain in the technology sector .SPLRCT .

Advanced Micro Devices IncAMD.O jumped 14 percent afterthe chipmaker reported record quarterly growth in data centersales and projected 2019 revenue growth above Wall Streetestimates. urn:newsml:reuters.com:*:nL3N1ZT5Z9

That helped lift the Philadelphia Semiconductor index .SOX by 1.32 percent.

The S&P consumer discretionary index .SPLRCD rose 1.2percent, boosted by a 2.7 percent gain for Amazon.com IncAMZN.O .

McDonald's CorpMCD.N rose 2.6 percent after it beatestimates for quarterly same-store sales, helped by a stronginternational performance. urn:newsml:reuters.com:*:nL3N1ZU4Q6

Weighing on the communication services index .SPLRCS was a4.7 percent drop in AT&T IncT.N after the wireless carrier'squarterly revenue and new wireless subscribers fell short ofanalysts' estimates. urn:newsml:reuters.com:*:nL3N1ZU4AU

Advancing issues outnumbered decliners for a 1.58-to-1 ratioon the NYSE and a 1.29-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and no newlows, while the Nasdaq recorded 13 new highs and 10 new lows. (Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;Editing by Shounak Dasgupta) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 6749 6328; Reuters Messaging:sruthi.shankar.reuters.com@reuters.net))


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

Other Topics

US Markets Stocks

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