Firmly

Oct 18, 2022

10/18/2022 1:32 PM ET Stocks have given back ground after an early rally but remain firmly positive in afternoon trading on Tuesday. With the strong gains on the day, the major averages are extending the recovery rally seen in the previous session. After surging by more than 650 points to a nearly one-month intraday, the Dow is currently up 320.31 points or 1.1 percent at 30,506.13. The Nasdaq is up 100.56 points or 0.9 percent at 10,776.36 and the S&P 500 is up 40.48 points or 1.1 percent at 3,718.43. The initial strength on Wall Street partly reflected a positive reaction to upbeat earnings news from companies like Goldman Sachs (GS) and Johnson & Johnson (JNJ) Shares of Goldman Sachs have jumped by 2.8 percent after the financial giant reported third quarter results that beat analyst estimates on both the top and bottom lines. Johnson & Johnson also reported better than expected third quarter results, although the healthcare giant has moved modestly lower over the course of the session. The upbeat results from Goldman Sachs and J&J have helped ease concerns about the strength of the earnings season. Netflix (NFLX) and United Airlines (UAL) are among the companies due to report their quarterly results after the close of today's trading. Big-name companies like Procter & Gamble (PG), IBM Corp. (IBM), Tesla (TSLA), AT&T (T) and American Express (AXP) are also due to report their results in the coming days. Traders may also have continued to hunt for bargains, as the major averages remain at relatively reduced levels even after yesterday's rally. Buying interest waned over the course of the morning, however, as concerns about the outlook for interest rates and the global economy continue to hang over the markets. In U.S. economic news, the Federal Reserve released a report showing industrial production increased by more than expected in the month of September. The Fed said industrial production rose by 0.4 percent in September after edging down by a revised 0.1 percent in August. Economists had expected industrial production to inch up by 0.1 percent compared to the 0.2 percent dip originally reported for the previous month. Sector News Housing stocks continue to turn in a strong performance in afternoon trading, with the Philadelphia Housing Sector Index surging by 2.3 percent. The strength among housing stocks comes even though the National Association of Home Builders released a report showing a continued deterioration in homebuilder confidence in the month of October. Significant strength has also emerged among oil service stocks, resulting in a 2.1 percent jump by the Philadelphia Oil Service Index. Oil services stocks have rallied despite a sharp drop by the price of crude oil, as crude for November delivery is slumping $1.96 to $83.50 a barrel. Networking, chemical and airline stocks also continue to see considerable strength on the day, moving higher along with most of the major sectors. Other Markets In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent and Hong Kong's Hang Seng Index surged by 1.8 percent, although China's Shanghai Composite Index bucked the uptrend and edged down by 0.1 percent. European stocks also moved to the upside on the day but closed well off their best levels. While the German DAX Index advanced by 0.9 percent, the French CAC 40 Index rose by 0.4 percent and the U.K.'s FTSE 100 Index edged up by 0.2 percent. In the bond market, treasuries have moved modestly lower over the course of the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.4 basis points at 4.029 percent. For comments and feedback contact: editorial@rttnews.com