NEW YORK, Oct 25 — US stock indexes rose today after strong results from Intel added to what has largely been a better-than-expected third-quarter earnings season so far and offset a dour forecast from Amazon.com.
Intel Corp jumped 7 per cent and was on course for its best day since January 2018 after issuing an upbeat forecast, helping lift the Philadelphia Semiconductor index. The stock was also among the biggest boosts to all three major US indexes.
Shares of Amazon.com Inc dropped 2.9 per cent after the e-commerce giant forecast revenue and profit for the crucial holiday quarter below estimates, citing fierce competition.
The wider consumer discretionary sector fell 0.7 per cent and was one of the biggest decliners among the 11 major S&P 500 sectors.
“We’ve had some misses ... mostly due to trade war concerns, but overall, it looks like we’re headed for a fairly good earnings season,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
After a rocky start to the month mainly on trade tensions and geopolitical worries, the benchmark S&P 500 index was set for its best week in six, while the Nasdaq eyed its biggest percentage gain in seven weeks.
Investors are also counting on the Federal Reserve to lower borrowing costs for the third time this year at its policy meeting next week after a clutch of poor economic data earlier in October.
Bets for a rate cut have surged to over 93 per cent from 53 per cent last month, according to CME Group’s FedWatch tool.
At 10.28am ET the Dow Jones Industrial Average was up 103.09 points, or 0.38 per cent, at 26,908.62, while the S&P 500 was up 4.86 points, or 0.16 per cent, at 3,015.15. The Nasdaq Composite was up 19.81 points, or 0.24 per cent, at 8,205.61.
Boeing Co dropped 1.3 per cent after Indonesian authorities looking into the Lion Air crash said the world’s largest planemaker failed to grasp risks in the design of cockpit software on its 737 MAX jet.
Apparel maker VF Corp fell 8 per cent after reporting lower-than-expected second-quarter revenue, hurt by sluggish demand for its North Face and Vans brands.
Shares of Charter Communications Inc gained 7.1 per cent after the cable operator posted better-than-expected quarterly results as it attracted more customers for its broadband services, offsetting a drop in pay TV subscribers.
Visa Inc rose 1.5 per cent after the world’s largest payments processor beat quarterly profit estimates, helped by growth in overall customer spending.
The next round of earnings due next week includes Apple Inc , Alphabet Inc, Pfizer Inc and Merck & Co Inc.
Advancing issues outnumbered decliners by a 1.26-to-1 ratio on the NYSE and by a 1.56-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and three new lows, while the Nasdaq recorded 57 new highs and 44 new lows. — Reuters
