72.8 F
Fort Worth
Wednesday, October 21, 2020
Banking Banks and tech companies lead US stocks to slight gains

Banks and tech companies lead US stocks to slight gains

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

Stocks were higher on Wall Street in afternoon trading Tuesday as investors sized up the latest batch of company earnings reports.

The gains, which followed a rally in overseas stock indexes, erased the market’s modest losses from a day earlier.

Financial stocks led way higher. Progressive jumped 6.5% after the insurer’s latest quarterly results topped analysts’ forecasts.

Chipmakers were among the big gainers in the technology sector. Advanced Micro Devices rose 2.5%.

Health care stocks lagged the most as traders weighed quarterly earnings from Johnson & Johnson and UnitedHealth Group. The results from both companies topped Wall Street forecasts.

Investors are looking to the latest wave of corporate earnings reports for clues on the health of the global economy and the prospects for company profits this year.

Banks kicked off the latest quarterly reporting season last week with mixed results. Analysts expect the first-quarter results for S&P 500 companies overall to be the weakest in nearly three years.

KEEPING SCORE: The S&P 500 was up 0.1% as of 2:35 p.m. Eastern Time. The Dow Jones Industrial Average gained 73 points, or 0.3%, to 26,458. The Nasdaq composite added 0.4% and the Russell 2000 index of small-cap stocks picked up 0.3%.

The benchmark S&P 500 remains within 0.6% of its most recent all-time high on September 20. Stocks have had a torrid start to the year, after the Federal Reserve said it may not raise interest rates at all in 2019.

Overseas stock indexes rallied on upbeat economic data from China and Germany. Markets in Asia finished higher. European indexes also rose.

ALL ABOUT EARNINGS: Investors will be poring over corporate earnings reports over the next few weeks. Analysts expect companies in the S&P 500 to report a 2.9% drop in earnings per share from a year earlier, which would be the first decline since the spring of 2016. The expected decline is due almost entirely to weaker profit margins.

“The markets are prepared for this year-over-year decline that everyone is expecting in earnings,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “Unless we have some significant misses, we should be doing OK.”

BEATING FORECASTS: Johnson & Johnson rose 2.1% after the health care products company’s first-quarter results topped Wall Street’s forecasts, even after the company said its profit slumped 14% following a decline in sales overseas and higher costs for research and litigation.

CLEAN BILL OF HEALTH: UnitedHealth Group, the nation’s largest health insurance company, reported first-quarter results that exceeded analysts’ expectations and raised its estimates for the full year. But cautious comments from management during a conference call with analysts weighed on the stock, which slumped 5.4%, giving up an early gain.

MIXED RESULTS: Bank of America was little changed after the nation’s second-largest bank reported strong earnings growth, but gave a weak forecast for net interest income, a key performance metric for banks.

OFF TRACK: JB Hunt Transport Services fell 4.8% after the trucking and logistics company’s first quarter profit and revenue fell short of Wall Street forecasts.

IN A BETTING MOOD: Scientific Games climbed 7.7% on news that the maker of betting machines and technology is partnering with Wynn Resorts to help develop digital sports betting and gambling. Wynn added 1.1%.

Latest News

Renderings released for Stop Six’s Cowan Place

Fort Worth Housing Solutions and development partner McCormack Baron Salazar have finalized architectural renderings for Cowan Place, the mixed-income, senior living community...

5 takeaways from the government’s lawsuit against Google

By The Associated Press WASHINGTON (AP) — The Justice Department's lawsuit against Google alleging antitrust violations marks the government's most significant attempt...

McConnell warns White House against COVID relief deal

lBy ANDREW TAYLOR Associated PressWASHINGTON (AP) — Washington negotiations on a huge COVID-19 relief bill took a modest step forward on Tuesday,...

City of Arlington Announces five finalists for police chief

The City of Arlington has named five finalists in its search for a new police chief in a search that began June...

National Democratic super PAC says it will double its spending to $12 million in battle for the Texas House

By Patrick Svitek, The Texas Tribune Oct. 20, 2020 "National Democratic super PAC says...