US stocks rose sharply on Tuesday as investors evaluated another round of corporate earnings.
The benchmark S&P 500 Index is up 2%, while the Dow Jones Industrial Average is up 510 points, or nearly 1.7%, as of 12:25 p.m. ET. The technology-heavy Nasdaq Composite is up 2.3%.
Housing data from the Ministry of Commerce released on the new Tuesday showed US homebuilding activity down 2%. In June to its lowest level since September 2021 as new construction projects ebbed, recent indications of rising mortgages and rising home prices are beginning to weigh on the once-hot housing market.
On the earnings front, second-quarter results from companies including Johnson & Johnson (JNJ), true financial (TFC), Lockheed Martin (LMT(Arrived Tuesday morning, with Netflix)NFLX) in the spotlight after the closing bell. Shares were up nearly 4% ahead of the report despite expectations that inflation, increased competition, and The surge in subscriber momentum will be obvious in the results.
Johnson & Johnson reported earnings for the period that beat analysts’ estimates but cut full-year sales and earnings expectations, indicating the impact of a stronger US dollar. Stocks changed little on Tuesday.
Of the 35 S&P 500 companies (making up 10% of the index) that reported second-quarter results as of July 15, 43% of companies had outperformed sales and earnings per share — weaker than the historical average after the first week of 47% and The weakest share since the first quarter of 2020, according to Bank of America Research data.
“We expect second-quarter EPS to ‘combine’ at best, with a series of downward revisions,” Bank of America analysts said in a note on Monday, adding that details on some key topics are of importance: demand outlook, pricing strength, and exchange markets. The foreigner and layoffs.
Federal Reserve officials indicated that they are likely to raise interest rates by 75 basis points at their next policy-setting meeting on July 26-27 after government data last week showed that US consumer prices in June accelerated at the fastest annual pace since November 1981.
Brian Jacobsen, senior investment analyst at Allspring Global Investments, told Yahoo Finance Live that the Fed should “communicate with the public that there is a lot it can do, especially to ease inflation in the near term.” “If there’s one lesson from history, it’s that if the Fed wants to tame inflation really fast, the only way they can do that is to take really extreme steps — it has to be an economically devastating kind of shock and awe, so I don’t think they They want collateral damage.”
Tuesday moves come after The rise in the previous session was reversed In the last hour of trading amid a A report from Bloomberg News which Apple indicated (AAPL) Plans to slow hiring and curb spending next year in preparation for a possible economic downturn.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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