[New York Stock Market] Rally on Strong Corporate Earnings... S&P 500 Index Up 1.14%

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[Asia Economy New York=Special Correspondent Joselgina] Major indices on the U.S. New York Stock Exchange closed higher for the second consecutive day on the 18th (local time), buoyed by strong earnings from companies including Goldman Sachs.

On the day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 337.98 points (1.12%) from the previous close to finish at 35,523.80. The large-cap S&P 500 index gained 42.03 points (1.14%) to close at 3,719.98, while the tech-heavy Nasdaq index increased by 96.60 points (0.90%) to end at 10,772.40. The small-cap Russell 2000 index also rose 20.20 points (1.16%) to close at 1,755.96.

Among individual stocks, bank shares showed notable strength. Following Bank of America (BoA) the previous day, Goldman Sachs also reported better-than-expected earnings, leading all major bank stocks to close higher. Goldman Sachs rose 2.33%, BoA gained 3.75%, and JP Morgan increased by 2.57%.

Lockheed Martin also jumped 8.69% after its earnings per share exceeded forecasts. Conversely, toy company Hasbro, which reported disappointing results, closed down 2.88%. Salesforce rose 4.31% on news that activist hedge fund Starboard Value acquired a stake. Target increased 5.35% after Jefferies upgraded its investment rating. Apple slipped on news of the iPhone 14 Plus production halt but rebounded to close up 0.94%.

Investors closely watched corporate earnings announcements on the day. Following BoA and BNY Mellon the previous day, Goldman Sachs’ better-than-expected results confirmed a rally across the market centered on bank stocks. Economic media outlet CNBC reported, "Fears of a recession and an overly aggressive central bank had pushed the U.S. stock market to recent lows in recent weeks, but the earnings season starting with solid results may signal that the current economic condition is better than feared."

After market close, Netflix and United Airlines are scheduled to release quarterly earnings. Art Hogan, Chief Market Strategist at B. Riley, said, "The earnings season gives investors a chance to focus more on the actual earnings power of U.S. companies," adding, "A better-than-feared earnings season could act as a catalyst to break the market’s downtrend." Altaf Kassam, Head of Investment Strategy at State Street Global Advisors, stated, "Earnings have not collapsed yet. Consumers are showing surprisingly strong resilience, and companies are holding up reasonably well."

Economic indicators were mixed. U.S. industrial production for September rose 0.4% from the previous month, turning positive from a prior decline and exceeding market expectations of 0.1%. However, the real estate market sentiment among U.S. homebuilders slipped for the tenth consecutive month, marking the lowest level in nearly a decade. According to the National Association of Home Builders (NAHB) and Wells Fargo, the October Housing Market Index (HMI) fell 8 points from the previous month to 38.

Tightening by the Federal Reserve to curb inflation is expected to continue, and warnings of a future recession persist. David Solomon, CEO of Goldman Sachs, said in a CNBC interview following the Q3 earnings release, "It doesn’t necessarily mean a really tough economic scenario is imminent, but the likelihood of a recession in the U.S. is high," adding, "It’s a time to be cautious." As a result, there are assessments that the New York stock market should remain open to the possibility of further declines.

In the New York bond market on the day, the yield on the U.S. 10-year Treasury note fell slightly to 3.99% from the previous close. The 2-year note, sensitive to monetary policy, dropped to around 4.43%. Volatility in the bond market was not significantly higher compared to last week.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street’s "fear gauge," traded around the 30 level, down more than 2.7% from the previous close.

Oil prices fell on news that the U.S. government is considering releasing strategic reserves. On the New York Mercantile Exchange, November West Texas Intermediate (WTI) crude oil closed at $82.82 per barrel, down $2.64 (3.09%) from the previous close.

This content was produced with the assistance of AI translation services.