Wall St ends sharply higher as earnings optimism fuels risk appetite

(Updates with closing prices) * Indices rise: Dow 1.12%, S&P 500 1.07%, Nasdaq 1.37% * Philadelphia Semiconductor Index hits all-time high * Apple shares hit record high * Boeing rises after FAA approves 737 MAX production increase By Stephen Culp NEW YORK 2020 stock up Monday (U.S., Oct.) with finance and technology stocks providing much of the upside muscle as upbeat quarterly earnings results revived risk appetite and investors eased fears about regional bank credit quality. A broad rally sent all three major U.S. stock indexes to a sharply higher close. The small-cap Russell 2000 outperformed its larger peers and gained 2.0% rose “It’s a good, solid, across-the-board move, there’s not a lot of negative in the market,” said Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest in Elmhurst, Illinois. “There is some relief from the financials … investors see it as perhaps a bit of an overreaction to the downside last week.” “What the market as far as I’m concerned, everything is great again.” Apple shares hit a record high, while Meta, Netflix and Alphabet rose between 1.3% and 3.3%.The Philadelphia Semiconductor Index ended the session up 1.6%.The third quarter’s earnings shifted into high gear this week. IBM, Intel, GM and Ford in, along with a flurry of other high-profile industrial firms, including aerospace, transportation and diversified manufacturers. Upcoming US regional bank results are expected to give a closer read of the sector on the heels of last week’s sell-off, which was driven by fears of systemic credit stress. Analysts currently expect third-quarter earnings growth for the S&P 500, in total, of 9.3% year-on-year, which is an improvement on their 8.8% growth estimate from 1 October. managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. Sentiment was given an extra boost by White House economic adviser Kevin Hassett, who said the federal government shutdown was likely to end this week. With the federal shutdown entering day 20, investors and policymakers have had to feel their way forward amid the resulting data blackout. But on Friday, the Labor Department will make an exception by releasing its September consumer price index (CPI), which will give the data-dependent US Federal Reserve a look at the state of inflation and perhaps an indication of the extent to which President Donald Trump’s rates affect price growth. In the ongoing trade skirmish between Washington and Beijing, Trump has suggested easing tariffs on China if Beijing resumes key agricultural purchases, including soybeans. Trump blamed the latest showdown on China’s rare earth export controls. The Dow Jones Industrial Average was up 515.97 points, or 1.12% 46,706.58 rose, the S&P 500 rose 71.12 points, or 1.07%, to 6,735.13 and the Nasdaq Composite gained 310.57 points, or 5,90.57, or 5,90,91. Of the 11 major sectors in the S&P 500, communications services enjoyed the largest percentage gain, while consumer staples and utilities inched lower have. Among other stock moves, Boeing advanced 1.8% after the planemaker won approval from the US Federal Aviation Administration to increase 737 MAX production to 42 planes per month. WeightWatchers rose 9.3% following the company’s announcement that it would partner with Amazon to deliver weight-loss drugs. Promotional expenses were more than the declines by a 4.81-to-1 ratio on the NYSE. There were 345 new highs and 47 new lows on the NYSE. On the Nasdaq, 3,599 stocks advanced and 1,078 declined as forward issues outnumbered decliners by a 3.34-to-1 ratio. The S&P 500 posted 23 new 52-week highs and 4 new lows, while the Nasdaq Composite 77 new highs and 69 new lows were recorded. Volume on US exchanges was 17.50 billion shares, compared to the 20.21 billion average for the full session over the past 20 trading days. (Reporting by Stephen Culp; Additional reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by David Gregorio)