On Tuesday, US stocks climbed more than 1% with the S&P 500 ending above its 50 day moving average, the first time in about a month as strong earning reduced concerns about corporate America outlooks.
There were broad gains, with all the 10 primary sectors of the S&P 500 rising on the day. Energy stocks were the largest gainers of the day, climbing 2.2% while Philadelphia SEO Oil Service Index gained 3.4%.
Adding to the positive tone of the day was the consumer confidence data, which hit the highest since 2007. The report overshadowed a separate read that indicated new orders for capital goods by US businesses dropped the most in eight months in September, as reported by Reuters.
US stocks, S&P 500 Index, Philadelphia SEO Oil Service Index, Channing Smith, Nasdaq Composite index
US companies have been reporting Q3 earnings that have beaten the expectations of analysts, easing worries about the impact of the stronger US dollar and the weak global demand.
Channing Smith, Capital Advisors co-portfolio manager of capital advisors growth fund said, “We haven’t seen big global companies downgrade their outlooks because of the stronger dollar or anything else, so earnings coming in so strong has been a relief.”
Amgen Inc rose 6.1% to $157.19 among the Nasdaq and S&P 500’s top boosters, a day after its 2015 outlook topped estimates. The Nasdaq Biotech index climbed 1.3%.
According to Fox Business, the Dow Jones Industrial Average gained 0.5% or 90 points to 16,908 while the S&P 500 gained 0.6% r 13 points to 1,974. The Nasdaq Composite index climbed 1.3% or 58 points to 4,544.
Investors are waiting for clues on the US economy’s outlook from the Federal Reserve as the central bank started a two-day policy meeting. This is likely to reinforce expectations it will wait for a longer time before rising interest rates, although the Fed is certain to announce the end of its bond-buying program.
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