Bengaluru: US stocks rose on Thursday, as robust earnings reports supported a third day of recovery from a bruising selloff in October, but a drop in Apple’s shares ahead of results kept technology stocks under pressure.
Chemicals producer DowDuPont Inc rose 6.6% after quarterly profit topped estimates and the company announced a $3 billion share buyback.
NXP Semiconductors climbed 8.6% after the chipmaker topped profit and revenue estimates, while American International Group Inc gained 4.7% after the insurer posted a smaller-than-quarterly loss.
Markets also got a lift after US President Donald Trump said in a tweet he had a “very good" talk with Chinese President Xi Jinping on trade and North Korea and that the two planned to meet at the upcoming G-20 summit.
The rebound comes after the benchmark S&P 500 in October posted its worst monthly performance since September 2011, battered by worries over rising borrowing costs, global trade disputes and a possible slowdown in US corporate profits.
“Over the past few days, we’ve seen the pressure valve taken off the selling which certainly helps from a sentiment perspective," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
The S&P technology index slipped 0.1% after two days of solid gains, with Apple, last among the major technology names to report earnings, falling 0.2% ahead of earnings after markets close.
Netflix, Facebook and Alphabet also fell, pushing the communication services index down 0.3%.
Shares in Spotify Technology fell about 10% after the paid music streaming service reported quarterly revenue and margins in line with expectations and a modest rise in premium subscribers.
S&P 500 companies are on pace to have posted a 26.3% rise in third-quarter earnings with more than half of the constituents having reported, according to IBES data from Refinitiv. Despite the big overall profit increase, some high-profile companies have issued disappointing reports.
At 10:12am ET, the Dow Jones Industrial Average was up 147.40 points, or 0.59%, at 25,263.16, the S&P 500 was up 12.40 points, or 0.46%, at 2,724.14. The Nasdaq Composite was up 23.57 points, or 0.32%, at 7,329.47.
Eight of the 11 major S&P sectors were higher, with a 2% jump in the materials index leading the gainers after DowDuPont’s results.
Health insurer Cigna Corp rose 3.1% after beating quarterly profit estimates and raising its full-year earnings forecast on tight cost controls.
Advancing issues outnumbered decliners by a 2.99-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 2.28-to-1 ratio on the Nasdaq.
The S&P index recorded 6 new 52-week highs and 2 new lows, while the Nasdaq recorded 12 new highs and 29 new lows.