On Tuesday, US stocks rallied with technology shares leading the broader benchmarks higher after investors shrugged off another decline in oil prices and shifted their attention to the season of corporate earnings.
According to The Wall Street Journal, the Dow Jones Industrial Average gained 1.4% or 252 points to 17,891 while the S&P 500 index gained 1.3% or 26 points to 2,054.
The Nasdaq Composite Index, being tech-heavy, gained 1.7% or 81 points to 4,746.
Amazon.com Inc. and Apple Inc. gained 3.2% and 3% respectively after upgrades from analysts at Wall Street.
Riskier sectors were noted by traders to have outperformed with no specific news item driving this move higher. The small-cap shares in the Russell 2000 Index rallied 1.6% with the biotechnology shares in the Nasdaq jumping 1.6%.
Head of sales trading at brokerage ITG, Brian Fenske said, “There’s been volatility and pullbacks in a lot of the Internet (stocks), so investors are looking to pick their sports ahead of the earnings seasons.”
Chief Market Strategist at Clearpool Group, Peter Kenny was quoted by Reuters as having said, “We have reached a point over the last two weeks where investors are not only eager for earnings seasons because of its fourth-quarter focus, but they are also eager for the guidance forward which has largely evaporated in this cloud of the oil trade.”
Financials such as Wells Fargo & Co, JP Morgan Chase, Citigroup Inc and Goldman Sachs Group Inc are some of the companies that are due to report this week as well as Intel Corp, the Dow component.
Chief investment officer at BMO Private Bank, Jack Ablin said. “Analysts really have knocked their estimated down pretty dramatically over the last three months for this quarter, my sense is companies are going to beat but expectations are as low a limbo stick right now.”
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