Stocks surge again as Corporate America’s earnings impress
By Paul R. La Monica, CNN Business
So much for Shocktober. Wall Street’s often scary month for stocks has suddenly turned into Rocktober.
The Dow surged nearly 600 points, or 2%, shortly after the opening bell Tuesday before giving up some of its gains. Still, ended the day up more than 340 points, or 1.1%.
Strong earnings from blue chip companies lifted the market’s mood. Goldman Sachs, fellow Dow component Johnson & Johnson and Lockheed Martin all reported profits that exceeded Wall Street’s expectations.
The Nasdaq and S&P 500 closed up 0.9% and 1.1% respectively.
The Dow also got a lift from the news that activist investing firm Starboard Value took a stake in software giant (and Dow component) Salesforce, with the hopes of pushing the company to make changes that can boost profits. Shares of Salesforce closed up 4.4%.
The market’s gains follow a big surge Monday, thanks to healthy earnings as well as improved sentiment about the UK following moves by Prime Minister Liz Truss’s government to backpedal on controversial tax cuts.
The Dow, S&P 500 and Nasdaq are now all higher for the month, following big drops in August and September. Stocks are still lower for the year as investors worry about inflation, big rate hikes from the Federal Reserve and the possibility of a recession in 2023.
The-CNN-Wire
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