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US-STOCKS-MARKETS
Strong earnings boost Dow, S&P 500
NEW YORK, July 19, 2018 (BSS/AFP) – The Dow and S&P 500 500 rose Wednesday
following a trove of mostly good earnings that outweighed rising anxiety over
trade wars.
The Dow Jones Industrial Average added 0.3 percent to finish the session at
25,199.36.
The broad-based S&P 500 advanced 0.2 percent to 2,815.62, while the tech-
rich Nasdaq Composite Index declined by a hair to 7,854.44 after closing at a
fresh record on Tuesday.
Most large banks reported better-than-expected results, outweighing a few
earnings disappointments, including from Netflix. Major technology and
industrial firms will report in the coming days.
Federal Reserve Chair Jerome Powell told a congressional panel that US
businesses already are being hurt by tariffs on key products, a prominent
theme also in a Fed report on economic conditions around the country.
But analysts said earnings are the big story right now.
“The market focus has shifted to earnings, and so far earnings have been
stronger than expected and guidance has also been positive,” said Adam
Sarhan, founder of 50 Park Investments.
“In the near term, that is enough to help the market look at the bigger
picture and dismiss some of the negative headlines.”
Morgan Stanley capped off a strong earnings period for large banks, rising
2.8 percent as it reported a 39 percent jump in second-quarter earnings to
$2.4 billion.
United Continental shot up 8.8 percent as it boosted its full-year earnings
forecast to a range of $7.25 to $8.75 per share from the prior range of $7.00
to $8.50. Delta Air Lines and American Airlines also won solid gains.
Google-parent Alphabet dipped 0.2 percent as the European Union fined the
company 4.3 billion euros ($5 billion) for antitrust abuses with its Android
operating system. Google said it would appeal the penalty.
BSS/AFP/HR/1005