Earnings festival propels the Dow for a triple-digit gain
InvestingOnline.com
25/07/2018, 01:30Biogen, United Technologies, Eli Lilly and especially Google reported stronger-than-expected earnings and fueled Wall Street to close at highs. The DJIA finished the day with a 200-point gain.
DJIA daily chart July 24
As Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research said, expectations “for earnings were pretty high coming into this season, and so far they are coming in as strong as we and a lot of people expected.”
Alphabet rallied 3.9% after reporting a big earnings beat. Google parent company reported adjusted earnings per share of $11.75, well above the expected $9.59.
Revenues came at $32.66 billion versus $32.17 billion expected by the market. Google jumped more than 5% after-hours and settled to about 3.5% up during the Google’s earnings call.
Biogen reported a Q2 EPS of $5.80, beating market expectations by $0.59. The company beat revenues by 110 million after a rise of 9.1% in the last year to $3.36 billion.
United Technologies reported a EPS of $1.97 in the Q2, $0.12 more than expected. UTX’s revenues rose 9.4% to $16.71 billion, $440 million more than expected.
Eli Lilly informed that they made $6.36 billion of revenues, a 9.3% increase year over year and a beat by $310 million. EPS is $1.50 in the Q2, $0.20 more than expected.
The S&P 500 rose 13.42 points or 0.48% to close the day at 2,820.40. The Dow Jones Industrial Average added 197.65 points or 0.79% to finish the day at 25,241.94. On the other hand, the Nasdaq Composite was 1.1 points or 0.01% down on the day to end the session at 7,840.76.
Most sectors finished Tuesday with gains. The materials sector was the leader with 0.54% gains on the day. Followed by Utilities with 0.40% increases, and the Energy sector, which finished the day 0.36% up.
The worse performers were consumer discretionary with a 0.54% decline, health care which closed 0.12% down, and the information technology sector that ended the day 0.06% negative.
