NEW YORK - Wall Street stocks surged Tuesday following a batch of mostly good corporate earnings while investors shrugged off a downcast IMF forecast that emphasised the drag from trade wars.
The strong reports more than made up for a disappointing release from Goldman Sachs and raised hopes that investors have underestimated the coming earnings period.The broad-based S&P 500 gained 1.0 per cent to 2,995.68, while the tech-rich Nasdaq Composite Index jumped 1.2 per cent to 8,148.71. "The rally is based on earnings," said Peter Cardillo of Spartan Capital Securities."If this keeps up we should be able to hit new records very shortly." The gains came despite a fresh International Monetary Fund report that lowered the 2019 and 2020 growth forecasts and warned of a"precarious" outlook if trade conflicts continue to fester.
Johnson & Johnson advanced 1.6 per cent as it lifted its full-year forecasts and reported quarterly profits of US$4.8 billion, up 22.9 per cent. The results helped reassure investors as the health giant contends with numerous high-profile product lawsuits.