Wall Street recovers on strong Wal-Mart, Cisco earnings
Bengaluru: US stock indexes recovered from two days of losses on Thursday after technology stocks got a boost from Cisco results and Wal-Mart soared to a record high.
Shares of Wal-Mart (WMT.N) rose 7 percent after the world’s largest retailer reported quarterly sales that beat expectations on hurricane-related purchases and soaring online sales.
Cisco (CSCO.O) shares surged 6.7 percent as strength in security business helped its earnings.
Both the stocks powered the S&P 500 and the Dow Jones indexes.
“One of the most remarkable stories of this year is Wal-Mart and they are again proving that with their results today,” said Art Hogan, chief market strategist at B. Riley FBR in Boston.
The S&P 500 recorded its biggest percentage decline in more than 2 months on Wednesday as energy stocks dropped on sliding crude prices and concerns over the passage of a tax revamp after two Republican senators were critical of the proposal weighed.
The Republican-controlled U.S. Congress is approaching a major test of its ability to overhaul tax code on Thursday, as lawmakers prepared for their first full-scale vote on sweeping tax legislation.
At 9:50 a.m. ET (1350 GMT), the Dow Jones Industrial Average .DJI was up 127.36 points, or 0.55 percent, at 23,398.64, the S&P 500 .SPX was up 11.39 points, or 0.44 percent, at 2,576.01 and the Nasdaq Composite .IXIC was up 48.38 points, or 0.72 percent, at 6,754.58.
Nine of the 11 major S&P indexes were higher, led by gains in consumer staples .SPLRCS and technology stocks .SPLRCT.
Folgers coffee maker J M Smucker (SJM.N) rose about 6 percent, while Viacom (VIAB.O) slipped 8.25 percent after reporting results.
Best Buy (BBY.N) fell 6.61 percent as quarterly same-store sales came in below estimates, hurt by a late launch of iPhone X.
Advancing issues outnumbered decliners on the NYSE by 1,900 to 774. On the Nasdaq, 1,878 issues rose and 598 fell.