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Computer industry

U.S. Stocks Rise for Second Day on Better-Than-Estimated Earnings

Strategic Insights

— 1 min read

Stocks from Harley-Davidson Inc. to Exxon Mobil Corp. posted positive results, with Harley-Davidson and Marshall & Ilsley Corp. climbing at least 7.3 percent. Crude oil rebounded from a three-week low, leading energy companies to gain significantly. However, Goldman Sachs Group Inc. fell 2.1 percent due to concerns over fraud accusations. International Business Machines Corp. declined 1.9 percent, affecting the Dow Jones Industrial Average. Despite this, the S&P 500 Index rose 0.8 percent to 1,207.17, recouping three-quarters of its loss when the SEC announced its case against Goldman.

Key Takeaways:

  • Harley-Davidson Inc. and Marshall & Ilsley Corp. posted better-than-estimated results, with Harley-Davidson climbing at least 7.3 percent and Marshall & Ilsley also experiencing significant gains.
  • Exxon Mobil Corp. led energy companies to the biggest gain among 10 industries, with crude oil rebounding from a three-week low.
  • Goldman Sachs Group Inc. fell 2.1 percent due to concerns surrounding fraud accusations, despite a 91 percent jump in earnings.
  • International Business Machines Corp. declined 1.9 percent, limiting gains in the Dow Jones Industrial Average, following a drop in service contract signings.
  • The S&P 500 Index rose 0.8 percent to 1,207.17, recouping three-quarters of its April 16 loss when the SEC announced its case against Goldman.
  • Jeffrey Saut, the chief investment strategist at Raymond James & Associates, stated that earnings are looking "pretty darn good" and that it's "very important to see banks beating expectations."
  • As financial companies rebuild their balance sheets, this will eventually boost lending.

Statistics:

  • Bank stocks, such as Goldman Sachs Group Inc., suffered losses despite positive earnings, with Goldman Sachs falling 2.1 percent.
  • Energy companies experienced significant gains, with Exxon Mobil Corp. leading the way, with a 4.5 percent gain.
  • The Dow Jones Industrial Average rose 25.01 points, or 0.2 percent, to 11,117.06.
  • The S&P 500 Index rose 0.8 percent to 1,207.17, recouping 0.75 of its loss from April 16.
  • Crude oil rebounded from a three-week low, providing a boost to energy companies.
  • Four stocks rose for each falling on U.S. exchanges, showing a roughly even split between positive and negative performances.

Sources:

  • Euclid Infotech Pvt. Ltd.

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