Arab Canada News
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Published: October 18, 2022
Stocks rose on Wall Street on Tuesday, boosting the weekly gains of major indexes that had plunged into a broad recession amid fears of inflation and recession. The S&P 500 index also rose by 0.8% as of 1:09 PM. The Dow Jones Industrial Average rose by 250 points or 0.8% to 30,426, and the Nasdaq increased by 0.7%. Additionally, industrial and technology companies posted strong gains, with Lockheed Martin shares jumping 6.1% after announcing strong third-quarter earnings. Gains retreated after a previous jump that led nearly all stocks in the S&P 500 to rise. Major benchmarks remain stuck in the bear market, meaning they have fallen at least 20% from their recent all-time highs. In this regard, Jeff Buchbinder, an equity analyst at LPL Financial, said: "High volatility is normal, as one of the reasons we see the markets stuck is that the narrative has shifted from inflation to earnings and the Federal Reserve." Likewise, bond yields rose, with the yield on the 10-year Treasury note, which affects mortgage rates, rising to 4.03% from 4.01% late Monday. The yield on the 2-year Treasury note, which tends to track expectations for Federal Reserve actions in the future, rose to 4.46% from 4.45% late that same day. Also, the latest round of corporate earnings is heavily focused on investors this week with little expected economic data. Goldman Sachs investment bank stock rose 2.2% after beating estimates, while sports streaming service FuboTV jumped 1.7% after giving investors an encouraging third-quarter update. Meanwhile, healthcare giant Johnson & Johnson remained mostly unchanged after announcing strong financial results but with narrow forecasts as it deals with a sharp dollar-driven decline in sales outside the U.S. Corporate earnings are the latest information Wall Street can use to try to get a better sense of the economy's future trajectory amid stubborn sharp inflation and increasing recession fears.
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