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Wall St propped up by Apple, Boeing

Credit: REUTERS/BRENDAN MCDERMID

Wall Street's main indexes were propped up by a rise in shares of Boeing and Apple, but gains were capped as weak earnings from Caterpillar and Texas instruments raised concerns about the impact of the U.S.-China trade war on global growth.

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Apple boosts S&P 500, Boeing lifts Dow

Caterpillar off after lowering profit forecast

Texas Instruments leads declines among chip stocks

Boston Scientific, Thermo Fisher jump on upbeat profits

Indexes up: Dow 0.24%, S&P 500 0.11%, Nasdaq 0.04%

Updates to open, adds background

By Shreyashi Sanyal and Arjun Panchadar

Oct 23 (Reuters) - Wall Street's main indexes were propped up by a rise in shares of Boeing and Apple, but gains were capped as weak earnings from Caterpillar and Texas instruments raised concerns about the impact of the U.S.-China trade war on global growth.

Apple Inc AAPL.O shares rose 1%, after Morgan Stanley said the iPhone maker's soon-to-be-launched video streaming service, Apple TV+, could boost its services revenue.

A 4% rise in Boeing Co BA.N shares lifted the blue-chip Dow Jones index .DJI after the planemaker reaffirmed the timeline for its grounded 737 MAX's return to service.

However, a profit warning from Texas Instruments TXN.O hinted that the chip industry was being squeezed both by a downturn in global demand and by the U.S.-China trade war. The company's shares were down 7%.

Caterpillar Inc CAT.N slipped 1% following its disappointing forecast.

The Philadelphia Semiconductor index .SOX fell 1.6% in early trading, while the S&P 500 industrials sector .SPLRCI dipped 0.1%.

"What I think is causing the hesitation is the fear of other bellwether companies also disappointing," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

Investors are now waiting for results from big tech firms, with Microsoft Corp MSFT.O scheduled to report after market close.

"A name like Microsoft could counter a McDonald's and investors' mindsets could be brought back on track while we wait for trade and continual monitoring of the economic cycle," Bakhos added.

The earnings season has largely been upbeat, with over 80 of the 100 companies topping analysts' estimates for profit, according to Refinitiv data. But analysts still project the first earnings contraction since 2016.

The Dow Jones Industrial Average .DJI rose 65.46 points, or 0.24%, to 26,853.56, the S&P 500 .SPX gained 3.38 points, or 0.11%, to 2,999.37 and the Nasdaq Composite .IXIC added 3.20 points, or 0.04%, to 8,107.50.

The S&P 500 .SPX is hovering near its record high on signs of progress in trade talks between the world's top two economies.

A handful of healthcare companies with low exposure to China rose on strong results. Drugmaker Alexion Pharmaceuticals ALXN.O gained 5.7% after raising full-year forecast.

Medical device makers Boston Scientific Corp BSX.N and Thermo Fisher Scientific TMO.N gained about 5% each as quarterly profits beat estimates.

However, Eli Lilly and Co LLY.N fell 5% after the drugmaker missed third-quarter revenue estimates.

Shares of Walgreens Boots Alliance Inc WBA.O dropped 2% after JPMorgan downgraded the drugstore chain's stock to "neutral" from "overweight".

Advancing issues outnumbered decliners by a 1.30-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.07-to-1 ratio on the Nasdaq.

The S&P index recorded 10 new 52-week highs and one new low, while the Nasdaq recorded 23 new highs and 32 new lows.

(Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Anil D'Silva and Sriraj Kalluvila)

((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780))

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

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