4:05pm: Stocks end higher as investors digest positive earnings
At the close, the Dow gained 1.5% to 34,911, while the S&P 500 added 1.6% at 4,462 and the tech-heavy Nasdaq climbed 2.2% to 13,620.
Bank of America (NYSE:BAC) said that, as of the start of this week, 53% of 34 S&P 500 companies (comprising 10% of index earnings) that have reported so far beat on both sales and earnings per share, which is slightly better than the typical Week 1 beat rate of 47% and last quarter's Week 1 rate of 50%.
12.05 pm: Nasdaq climbs nearly 2% to lead the advance
US stocks rose sharply in noon trading as buyers waded in following some better-than-expected corporate financial results.
At midday, the Dow gained 417 points to 34,829, while the S&P 500 added 59 points at 4,451 and the tech-heavy Nasdaq climbed 251 points to 13,583.
“A long weekend away from markets seems to have done wonders for US investors, who have been in a much better mood over these last 24 hours,” IG chief market analyst Chris Beauchamp said.
“Hope springs eternal, especially in earnings season, and with a broader range of names reporting from now on there will be the expectation of better news than that from the cautious updates of the banking sector over the last few sessions,” Beauchamp added.
Notable movers included shares of Johnson & Johnson (NYSE:JNJ), which rose more than 3% after the pharmaceutical giant reported better-than-expected 1Q earnings per share and boosted its quarterly dividend by 6.6%.
11.05am: Proactive North America headlines:
Netflix earnings under more scrutiny as UK households slash non-essential spending
Dalrada Corporation (OTCQB:DFCO) taps hospitality and real estate industry veteran Phil Marriott to the company’s board
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) says 1Q 2022 delivered “significant opportunities” for its KGK Science subsidiary
TRACON Pharmaceuticals (NASDAQ:TCON) receives amended ENVASARC protocol approval for its US and UK clinical sites
ACME Lithium forms strategic advisory board, appoints two technical experts to advance its lithium projects in the US and Canada
LQwD continues node transaction growth as it launches strategic India node
Co-Diagnostics (NASDAQ:CODX) says its CoSara Diagnostics Indian joint venture has received clearance to manufacture and sell its Hepatitis C Viral (HCV) Load Kit as an in vitro diagnostic
Phunware partners with Accion Labs to provide mobile solutions for digital transformation
PlantX Life announces monthly gross revenue of $1.72M for March 2022
Goldshore Resources posts more encouraging drill results from Moss Lake gold deposit, Ontario
PharmaDrug files provisional patent following positive findings for PD-001 and frontline chemotherapy combo in prostate cancer study
Audacious expands US cannabis footprint with conditional cultivation and manufacturing licenses in New Jersey
AMPD Ventures says Departure Lounge Inc subsidiary completes key executive hire to establish creative services team
Bridgeline Digital says its site search product has been chosen by a large industrial distributor to power its online store
Southern Energy laying the foundation for growth as it reports net earnings of US$10.1M for full year 2021
FansUnite Entertainment inks Memorandum of Understanding with Dragon Bet owners to launch online sports betting portal
Champion Gaming (TSX-V:WAGR) brings Major League Baseball to EdjSports.com
World Copper says its common shares have been approved to trade on the OTCQX Best Market
Mindset Pharma strengthens IP portfolio with new provisional patent application
Todos Medical says Tollovid receives LGC Group’s Informed Sport Certification as it targets athlete support
Red Pine Exploration hails latest Wawa drill results which support the potential to expand resources 'along strike, dip and plunge'
TraceSafe expands operations in Asia with the launch of its smart building solution in Malaysia
Nextech AR Solutions says it has launched ARitize BigCommerce App for 3D model making
Copper Fox unveils plans for 2022 field program at Schaft Creek project in British Columbia
Canada Silver Cobalt says survey at Graal property in Quebec supports potential for growth
Looking Glass Labs says House of Kibaa subsidiary raises gross proceeds of C$2.59M from inaugural virtual land sale
9.45am: US shares start mixed
US stocks started mixed on Tuesday as traders brace for a deluge of corporate earnings and digest news the International Monetary Fund (IMF) has cut global growth forecasts due to the Ukraine/Russia conflict.
The Dow Jones Industrial Average added around 101 points at 34,513 in early trades in New York. The S&P 500 added around six points at 4,398.
The tech laden Nasdaq index lost around five points at 13,327.
The IMF has reduced its estimate for global growth for 2022 to 3.6% from 4.4%. The Washington-based IMF is due to publish updated forecasts later.
On the corporate front, traders await Netflix and IBM numbers after the New York bell, while consumer goods and pharma titan Johnson & Johnson (NYSE:JNJ) shares added almost 3% in New York after its earnings per share (EPS) beat expectations while revenue missed analyst estimates.
Toys and games giant Hasbro (NASDAQ:HAS) slipped over 1% as it reported a weaker-than-expected quarterly profit, while revenue was in line with estimates.
6.30am: US stocks seen opening down
US stocks are expected to open lower as the first-quarter earnings season progresses amid escalating tensions between Russia and Ukraine and a downgrade to global growth forecasts.
Futures for the Dow Jones Industrial Average declined 0.09% in Tuesday's pre-market trading, while those for the broader S&P 500 index shed 0.18% and the tech-heavy Nasdaq fell 0.28%.
“There is a cocktail of headwinds facing markets this week. Ukraine-Russia tensions have escalated once more, with a Russian offensive underway in the crucial Donbas region,” commented Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “Any suggestion that tensions are going to be prolonged, or more violent, is enough to mute sentiment in western markets.”
Lund-Yates said earnings will be the biggest catalyst for big moves this week on US markets, where stocks ended in the red on Monday as investors returned from the holiday weekend and geared up for another busy week of corporate earnings from the likes of Netflix, Tesla, American Express and United Airlines.
The Dow fell 40 points, or 0.11% to 34,412, while the S&P 500 eased a single point to 4,392 and the tech-heavy Nasdaq slipped 19 points to 13,332.
“First up is Netflix, which should give some indication of how global discretionary spending is faring in a high-inflationary environment,” Lund-Yates added. “The group’s strong brand and established market share dominance should hold it in better stead than newer incumbents, but this is far from guaranteed and the market reaction is likely to be severe if it fails to reach its lowered subscriber targets.”
Other issues investors face are rising oil prices in response to the mounting Ukraine-Russia tensions, with crude oil topping $107 a barrel, and concerns over global growth.
The World Bank estimate for growth in 2022 has been trimmed to 3.2% from a January prediction of 4.1%, owing to a combination of the ongoing Ukraine crisis, coronavirus (COVID-19) and supply chain disruption.
“There are growing concerns of recessions,” Lund-Yates said. “Rising interest rates at a time when economic activity is slowing down makes for very difficult conditions, which aren’t lost on the financial world."