Dow jumps over 500 points as US stocks rally on strong earnings

  • Dow jumps over 500 points as US stocks rally on strong earnings

Dow jumps over 500 points as US stocks rally on strong earnings

Walmart shares rose 2.1 percent as its chief executive urged investors to revise their view of the company's business.

UnitedHealth Group, a major health insurer, rose 2.1 per cent and Johnson and Johnson rose 2.2 per cent. UnitedHealth, the country's biggest health insurer, exceeded analyst's projections for the quarter and raised its projections for the year.

The S&P 500 index rallied 2.1 percent, its largest jump since March 26, to 2,809.92.

The S&P 500 surged back above 2,800 as it continues a rebound from last week's sell-off, while small caps in the Russell 2000 Index jumped the most in nearly two years.

The Dow Jones Industrial Average finished a buoyant session a hair below session peaks, ending at 25,798.42, up 2.2 per cent or almost 550 points.

In economic data, US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, while other data showed job openings hit a record high in August.

U.S. EARNINGS: Major financial and health care companies reported strong profits for the third quarter on Tuesday, surpassing market expectations.

"Anything that helps the market think that the Fed won't make a mistake is good", Wren said.

Canaccord Genuity predicted USA stocks would remain under pressure, while CFRA Research wrote that "the full decline might not be over".

UBER IPO: According to a media report, Uber has received proposals from investment banks Morgan Stanley and Goldman Sachs that valued the ride hailing company at as much as $120 billion. The stock has jumped 49 percent this year, but had slumped in recent days.

Canada's main stock index posted its best day in six months despite a pullback on cannabis stocks ahead of Wednesday's legalization.

Benchmark Capital analyst Mike Hickey started coverage of Tilray with a $200 price target today, saying its supply deals with pharmacies and a partnership with drugmaker Novartis will help make it an early leader in the market. Canopy Growth, which recently announced a big investment from Corona beer maker Constellation Brands, has more than doubled in value to US$12.2b.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 12, 2018. Brent crude, the worldwide standard, rose 8 cents to $81.49 a barrel.

Germany's DAX jumped 0.8 per cent and the FTSE 100 in Britain rose 0.5 per cent. France's CAC 40 fell less than 0.1 per cent. Natural gas lost 0.1 percent to $3.24 per 1,000 cubic feet.

On the downside, BlackRock shares dropped 4.4 percent after the world's biggest asset manager reported its lowest sales of equity, bond and other long-term investments since the second quarter of 2016. Cigna advanced 3.9 per cent to US$211.96.

In another sign investors were nervous about stocks, gold rose 0.7 per cent to $US1,230.30 an ounce and silver picked up 0.6 per cent to $US14.73 an ounce. It added 0.8 percent to $81.41 per barrel in London. Apple gave up 2.1 per cent to $US217.36 and chipmaker Nvidia slipped 3.4 per cent to $US235.38.

CURRENCIES: The dollar strengthened to 112.39 yen from 112.28 yen late Tuesday. The euro fell to $1.1563 from $1.1575. Italy's FTSE MIB jumped 2.2 percent after the government avoided last-minute delays in presenting a budget plan.

Asian markets rose on Wednesday as robust US corporate earnings and encouraging data assuaged worries about softening global growth. But the index was still 4.1 percent lower than its record high in late September.