NEW YORK: Wall Street stocks surged on Tuesday following a batch of mostly good corporate earnings while investors shrugged off a downcast IMF forecast that emphasised the drag from trade wars.
Expectations have been tepid for the third-quarter earnings season, which began in earnest on Tuesday. Companies in the S&P 500 were projected to report a 4.6 per cent drop in earnings, according to FactSet."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."
JPMorgan jumped 3.0 per cent after reporting profits of US$9.1 billion, up 8.4 per cent from the year-ago period in results that topped analyst expectations. Executives pointed to consumer lending businesses as especially strong.