Stocks rallied Tuesday, with the market resuming a bounce from last month’s lows, as traders bet on strong corporate earnings reports and wagered that markets have found a bottom.
The Dow Jones Industrial Average jumped 754.44 points, or 2.43%, to 31,827.05 — closing near the highs of the session as gains accelerated in the final hour of trading. The S&P 500 gained 2.76% to 3,936.69. The Nasdaq Composite rose 3.11% to 11,713.15.
Investor sentiment has worsened to a point that some on Wall Street believe markets are set up for a relief rally ahead. Investors’ panic may have teed up a fantastic buying opportunity, according to a Bank of America survey of professional investors on Tuesday. Indeed, survey participants’ bearishness suggests that the sellers are washed out, and stocks may rise from here.
The Bank of America survey found that the allocation to stocks in portfolios is at its lowest since October 2008, one month after the collapse of Lehman Brothers, while cash holdings are the highest since 2001.
Meanwhile, shares of Halliburton climbed 2.1% as sharply rising oil prices this year helped lift profits for the oilfield services company in its most recent quarter.
Hasbro reported earnings per share that beat analyst expectations, though the toymaker’s revenue for the previous quarter came in a tad below expectations, according to consensus estimates from Refinitiv. Shares gained 0.7%.
Shares of IBM fell nearly 5.3% after the tech company lowered its forecast for cash flow, with IBM finance chief Jim Kavanaugh citing the U.S. dollar and a suspension of business in Russia. Still, the company reported results that beat Wall Street’s earnings and revenue estimates.
Johnson & Johnson shares declined about 1.5% after the pharmaceutical giant blamed a stronger dollar while cutting its full-year revenue and profit guidance. The company reported better-than-expected top and bottom line results.
The pan-European Stoxx 600 index closed up by 1.4% despite hovering around the flatline for much of the session. Autos added 3.2% while banks climbed 3%. At the bottom of the index, French manufacturer Alstom fell 2.6% after its quarterly earnings report.
Source: CNBC, Investing.com