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(Reuters) – US stocks advanced on Wednesday, as strong earnings from IBM, United Technologies and Procter & Gamble led to Wall Street's rebound after its second dip in 2019.
International Business Machines Corp jumped 8.78% and led the Dow Jones Industrial Average after the technology services company projected 2019 earnings above expectations.
The increase in IBM shares also benefited the S & P technology sector, which gained 1.19%.
A 6.65% increase in United Technologies Corp., which posted quarterly earnings above expectations, helped push the S & P industry sector up 1.05%.
Industrial partner companies, Boeing Co, Caterpillar Inc. and 3M Co, grew from 0.5% to 1.2%.
The Wall Street gain follows a loss of more than 1% Tuesday against concerns about global growth due to the gloomy economic outlook of the International Monetary Fund, signs of further slowdown in the Chinese economy and mixed reports on US-Chinese trade negotiations.
"In a day like yesterday, a profit-based rebound is not unusual," said Michael Antonelli, managing director, Institutional Sales Operations at Robert W. Baird in Milwaukee.
"UTX, as an industrial company, is undoubtedly an element on which investors are turning to the impact of a global economic slowdown." The fact that it provided a solid forecast shows that the US economy is actually solid. "
White House economic advisor Kevin Hbadett said the US and China could reach a trade deal before March 1st.
At 9:56, the Dow Jones Industrial Average was up 283.95 points, or 1.16%, to 24,688.43, the S & P 500 up 18.80 points, or 0.71%, at 2,651.70 and Nasdaq Composite up 58.66 points, or 0.84%. at 0779.02.
Despite the decline observed on Tuesday, the S & P 500 benchmark is less than 10% of its September 20 closing record and has climbed to about 6% this year.
Procter & Gamble Co grew by 5.98%, helping the consumer staples sector to grow 1.41% after its quarterly revenue exceeded Wall Street expectations.
Kimberly-Clark Corpa was down 1.96 percent after its quarterly earnings fell short of badysts' estimates due to rising commodity costs and the strength of the US dollar.
The communications services segment grew 0.93% over a 6.35% gain by cable provider Comcast Corp, which exceeded badysts' estimates of revenues from lower video subscriber losses. expectations to.
Abbott Laboratories lost 1.36% after the health care company missed estimates of its quarterly turnover due to lower generic drug sales in emerging markets and gave downward forecasts for the current quarter.
According to Refinitiv data, 78.7% of the 61 companies in the S & P 500 that reported results up to Tuesday exceeded Wall Street's earnings guidance, which is above the historical average of 64% .
However, earnings growth estimates went from 20.1% in early October to 14.1%.
Increasing issues outnumbered decliers with a ratio of 2.83 to 1 on the NYSE and a ratio of 2.83 to 1 on the Nasdaq.
The S & P index recorded three new highs over 52 weeks and no new lows, while the Nasdaq recorded 11 new highs and 14 new lows.
(Report by Shreyashi Sanyal and additional report by Sruthi Shankar in Bengaluru, edited by Arun Koyyur)
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