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* JPMorgan hits record high, lifts bank stocks
* UnitedHealth eyes best day in eight years
* JNJ set for biggest one-day percentage gain since Jan
* Brexit deal hopes brighten sentiment
* Indexes up: Dow 1%, S&P 1.14%, Nasdaq 1.30%
(Updates to early afternoon)
By Arjun Panchadar and Sagarika Jaisinghani
Oct 15 (Reuters) - Wall Street rose 1% on Tuesday as strong
earnings from JPMorgan, UnitedHealth and Johnson & Johnson
allayed concerns about the fallout from a prolonged U.S.-China
trade war on Corporate America.
All three major stock indexes hit three-week highs after
quarterly results from some of the largest U.S. banks showed
strong consumer confidence in the face of recession fears that
had led businesses to pull back on spending. Hopes that Britain and the European Union would reach a deal
in time for a leaders' summit this week also brightened
sentiment. Shares of JPMorgan Chase & Co JPM.N hit a record high, and
lifted the S&P 500 banking sector .SPXBK to its highest level
in a year. UnitedHealth Group Inc UNH.N was set to post its best day
in eight years, while Johnson & Johnson JNJ.N shares eyed
their biggest one-day percentage gain since January after both
companies raised their profit forecasts. The stocks were among the top boosts to the S&P 500 and Dow
Jones indexes, and lifted the S&P healthcare sector .SPXHC to
a three-week high. Eight of the 11 major S&P sectors were
higher.
"If this earnings season turns out to be better than
expected, we can end up with a scenario that there won't be
pressure on the labor market and that keeps us away from a
recession," said Phil Blancato, chief executive of Ladenburg
Thalmann Asset Management in New York.
Analysts have forecast the worst quarterly profit
performance in about three years for S&P 500 companies, with
industrials among those most at risk from the trade dispute.
For an interactive graphic, click link: https://tmsnrt.rs/2IUwPLY
Wall Street has been rattled over the past 15 months by
tit-for-tat tariffs by the United States and China, with the
impact already reflecting in the domestic economy. After solid
increases in the first quarter, gains in the three main U.S.
stock indexes have tapered off.
At 1:07 p.m. ET, the Dow Jones Industrial Average .DJI was
up 266.87 points, or 1.00%, at 27,054.23. The S&P 500 .SPX was
up 33.80 points, or 1.14%, at 2,999.95 and the Nasdaq Composite
.IXIC was up 104.24 points, or 1.30%, at 8,152.89.
Shares of mobile game developer Glu Mobile GLUU.O jumped
10.7% as the company is set to replace SolarEdge Technologies
SEDG.O in the S&P SmallCap 600. BlackRock Inc BLK.N , the world's biggest asset manager,
rose 2.7% after its quarterly profit beat estimates.
Shares of Roku Inc ROKU.O surged 9.3% after the television
streaming platform said Apple Inc's AAPL.O TV app was
available on its platform and Apple TV+ would be available after
it was launched. Bank of America BAC.N , which is due to report results on
Wednesday, jumped 2.9% after a report that Warren Buffett was
seeking leeway from the Federal Reserve to increase its stake in
the bank beyond 10%. Advancing issues outnumbered decliners by a 2.47-to-1 ratio
on the NYSE and by a 2.92-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and no new lows,
while the Nasdaq recorded 35 new highs and 56 new lows.
S&P 500 earnings vs price performance https://tmsnrt.rs/35CNLAo
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