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US-STOCKS-MARKETS
Wall Street forges higher amid rosy earnings
NEW YORK, April 17, 2019 (BSS/AFP) – Wall Street edged higher on Tuesday
amid a string of better-than-expected earnings reports, bringing the three
major stock indices closer to fresh all-time record levels.
Investors also sent US chip maker Qualcomm soaring more than 20 percent —
its best one-day performance in nearly 20 years — after it joined iPhone
maker Apple in announcing a settlement to the two companies’ sprawling legal
battle over royalty payments.
The benchmark Dow Jones Industrial Average added 0.3 percent, rising to
26,452.66. The S&P 500 rose a hair to 2,907.06, leaving it just 0.8 percent
below an all-time high set in September of last year.
Meanwhile, the tech-heavy Nasdaq added 0.3 percent 8,000.23, crossing the
8,000-point mark for the first time since October.
“The mood was really risk-on,” Karl Haeling of LBBW told AFP.
“There is a high degree of nervousness and worry right now in the market
and a lot of cash on the sidelines.”
Investors believe recent US economic news has been favorable but still
expect a recession in the second half of next year, said Haeling, meaning the
positive momentum on Wall Street might not be what it seems.
“Even though the earnings are beating earnings expectations, they are
beating a low bar and the revenue side has not been great,” he added.
Dow member Johnson & Johnson rose 1.1 percent after beating analyst
expectations for earnings.
Meanwhile, UnitedHealth also posted higher-than-expecting earnings but its
stock lead the Dow lower.
Media reports speculated investors were worried the company faces an
uncertain regulatory future, with US Democratic presidential candidates
increasingly calling for universal health coverage.
In the tech sector, chip manufacturer Qualcomm rocketed 23.2 percent
higher, its biggest one-day gains since December of 1999, after the company
joined iPhone maker Apple in announcing a settlement in what could have been
bruising royalties litigation.
BSS/AFP/HR/0935