US STOCKS-Wall St rises after upbeat start to earnings season

  • Reuters
  • Stock Market News
US STOCKS-Wall St rises after upbeat start to earnings season
Credit: © Reuters.

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* JPMorgan touches three-week high after profit beat

* UnitedHealth (NYSE: UNH ) eyes best day in three years

* JNJ set for biggest one-day percentage gain since Jan

* Wells Fargo (NYSE: WFC ), Goldman Sachs (NYSE: GS ) drop on earnings miss

* Indexes up: Dow 0.49%, S&P 0.47%, Nasdaq 0.46% (Updates to open)

By Sagarika Jaisinghani

Oct 15 (Reuters) - Wall Street was off to a strong start on Tuesday as upbeat earnings reports from JPMorgan Chase (NYSE: JPM ), UnitedHealth and Johnson & Johnson allayed concerns about the fallout from a prolonged U.S.-China trade war on corporate America.

Shares of JPMorgan Chase & Co JPM.N gained 1.7% to a three-week high after the company beat Wall Street estimates for third-quarter profit by a wide margin. Group Inc UNH.N was set to post its best day in three years, while Johnson & Johnson JNJ.N shares eyed their biggest one-day percentage gain since January after both companies raised their profit forecasts. stocks were among the stocks boosting the S&P 500 and Dow Jones indexes, and lifted the S&P healthcare sector .SPXHC to a three-week high. All 11 major S&P sectors rose in early trading.

"A good earnings season with solid reporting and signs from companies saying the future is okay would assuage fears regarding an economic slowdown and recession," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

Analysts are forecasting the worst quarterly profit performance in about three years for S&P 500 companies, with industrials among those most at risk from the trade dispute. Fargo WFC.N and Goldman Sachs GS.N dropped 0.7% and 3.3%, respectively, after reporting weaker-than-expected quarterly profit. banks were expected to report a 1.2% decline in earnings, their first year-on-year drop in three, due in part to low interest rates and trade tensions. Street has been rattled over the past 15 months by tit-for-tat tariffs by the United States and China, with the impact already reflecting in the domestic economy.

The International Monetary Fund warned on Tuesday that global growth in 2019 will log its slowest pace since the 2008-2009 financial crisis as a result of the trade war. a more than 11% increase in the first quarter, gains in the three main U.S. stock indexes tapered off in the second and third. The S&P 500 and Dow Jones kicked off the fourth quarter with a 0.4% drop so far in October.

At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI was up 131.51 points, or 0.49%, at 26,918.87, while the S&P 500 .SPX was up 13.80 points, or 0.47%, at 2,979.95. The Nasdaq Composite .IXIC was up 36.87 points, or 0.46%, at 8,085.52.

Shares of mobile game developer Glu Mobile GLUU.O jumped 9.7% as it is set to replace SolarEdge Technologies SEDG.O in the S&P SmallCap 600. Inc BLK.N , the world's biggest asset manager, rose 1% after its quarterly profit beat estimates. stocks including D.R. Horton Inc DHI.N , Toll Brothers Inc TOL.N , Lennar Corp (NYSE: LEN ) LEN.N and PulteGroup Inc (NYSE: PHM ) PHM.N rose nearly 1% after RBC Capital Markets raised its price targets on several companies in the sector. of America BAC.N and Morgan Stanley (NYSE: MS ) MS.N are due to report later this week, along with Netflix Inc NFLX.O , Abbott Laboratories (NYSE: ABT ) ABT.N and Union Pacific (NYSE: UNP ) UNP.N .

Advancing issues outnumbered decliners by a 1.77-to-1 ratio on the NYSE and by a 1.80-to-1 ratio on the Nasdaq.

The S&P index recorded three new 52-week highs and no new lows, while the Nasdaq recorded 12 new highs and 32 new lows.

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