Stocks open higher on Wall Street as more earnings arrive | Your money

NEW YORK (AP) — Stocks open wide higher on Wall Street on Tuesday as more earnings reports roll in from U.S. companies. The S&P 500 rose 1.2% in the first few minutes of trading. The Dow Jones rose 0.9% and the Nasdaq 1.1%. Small company stocks outperformed the rest of the market, pushing the Russell 2000 Index up 1.8%. Energy company Halliburton rose 3% after reporting better-than-expected results, but defense contractor Lockheed Martin lost 2% after its results were lower. On Thursday, the European Central Bank is expected to raise interest rates for the first time in 11 years.

THIS IS A BREAKING NEWS UPDATE. AP’s previous story follows below.

NEW YORK (AP) — Wall Street was poised for gains when markets opened Tuesday as investors continue to peek at corporate earnings reports while eagerly awaiting to see how well the Reserve Fed will raise its main borrowing rate when it meets next week.

Dow Jones Industrials futures rose 0.6% and S&P 500 futures gained 0.8%.

Corporate earnings are at risk given high inflation and slowdowns in parts of the economy, though analysts still expect continued growth and markets are likely to remain volatile through the earnings season.

“The news paints a soured picture of the outlook for big companies amid fears for global growth,” ActivTrades trader Anderson Alves said in a commentary. “Traders will be paying close attention to the ongoing earnings season for further signs of how companies are doing in a weakening economy.”

Johnson & Johnson said growing sales of the cancer treatment Darzalex helped the healthcare giant achieve a better-than-expected second quarter, but currency exchange rates again slashed its 2022 forecast. forecast in April citing exchange rates – a rapidly strengthening dollar – the company did again on Tuesday in a range below analysts’ expectations. Shares of J&J rose 1% in premarket trading.

American Airlines and Tesla are among dozens of S&P 500 companies expected to release quarterly snapshots this week.

Global equities were mixed on Tuesday, while oil prices retreated after Monday’s 5.1% jump.

At midday in Europe, the French CAC 40 fell 0.2% in early trading, while the German DAX edged up 0.1% after early losses. Britain’s FTSE 100 rose 0.3%, also recovering from small early losses.

In Asian trading, Japan’s benchmark Nikkei 225 reversed early losses, adding 0.7% to end at 26,961.68. Australia’s S&P/ASX 200 slipped 0.6% to 6,649.60. The South Korean Kospi fell 0.2% to 2,370.97. Hong Kong’s Hang Seng fell 0.9% to 20,661.06, while the Shanghai Composite was little changed at 3,279.43.

Analysts said the Tokyo market was seeing buying after a three-day weekend. Monday was a public holiday in Japan.

On Monday, the S&P 500 fell 0.8% while the Dow Jones Industrial Average slipped 0.7%. The Nasdaq fell 0.8% and the Russell 2000 Small Company Index fell 0.3%.

The U.S. market has been falling for weeks on fears that the Federal Reserve and other central banks are clamping down on the economy too hard in hopes of bringing down high inflation. If they are too aggressive in their interest rate hikes, they could cause a recession.

A key report released last week indicated that inflation expectations are falling among households. This could prevent a vicious circle from taking root and ease the pressure on the Federal Reserve.

Expectations have fallen on how aggressively the Federal Reserve will raise interest rates at its meeting next week. Traders are now betting on roughly a one in three chance of a monstrous full percentage point rise, with the majority favoring a 0.75 percentage point rise. As recently as Thursday, the big bet was on a full point hike.

On Thursday, the European Central Bank is expected to raise interest rates for the first time in 11 years. Many investors expect a 0.25 percentage point increase, “but more is not unthinkable,” the economists wrote in a BofA Global Research report.

In energy trading, benchmark U.S. crude fell $1.88 to $100.72 a barrel. Brent crude, the international standard, fell $1.62 to $104.65 a barrel.

In currency trading, the US dollar fell slightly to 137.56 Japanese yen from 138.13 yen. The Euro traded at $1.0250, down from $1.0146 previously.


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Garland K. Long