Rally Rolls into Second Day
U.S. stocks climbed higher on Wednesday as equities continued their rebound from a one-day rout to start the week.
The Dow Jones Industrials popped 286.01 points, to conclude Wednesday at 34,798.
Better-than-expected earnings reports from Dow members Coca-Cola and Johnson & Johnson added to the bullish sentiment.
The 30-stock index rallied nearly 550 points on Tuesday, after tumbling 725 points on Monday for its worst session in eight months. The back-to-back rallies have now completely wiped the losses from the start of the week for all three indexes.
The S&P 500 climbed 35.63 points to 4,358.69
The NASDAQ added 133.08 points to 14,631.95.
Stocks that would benefit most from a continued swift economic reopening climbed on Wednesday after rebounding from the Monday sell-off in the prior session. Shares of Carnival were up more than 9%. Las Vegas Sands was up 3%.
Energy stocks led the continued rally as oil continued to rebound after falling below $70 a barrel on Monday. The Energy Select SPDR is 3.5% higher on the day.
Dow member Coca-Cola gave an early boost to market sentiment after reporting quarterly revenue that topped pre-pandemic 2019 levels and raising its full-year forecast. Coca-Cola shares gained more than 1%.
Fellow Dow member Johnson & Johnson’s stock traded nearly flat even after the drugmaker reported better than expected second-quarter earnings and revenue and also raised its 2021 guidance.
Moderna joined the S&P 500, giving the stock a 20% boost from when the addition was announced a week ago. Its shares have gained 4.5%.
Verizon shares are up slightly after reporting better-than-expected revenue and subscriber growth and raising its full-year outlook.
Shares of Chipotle rose more than 11.5% as the Mexican fast-food chain reported quarterly revenue that surpassed pre-pandemic levels as dine-in customers returned to its restaurants.
Netflix reported disappointing third quarter subscriber guidance after the bell on Tuesday. The streaming giant said it expects 3.5 million net subscribers in the third quarter, nearly two million below analysts’ estimates. The company also reported earnings that missed expectations.
Netflix shares were last down 3.2%.
About 85% of S&P 500 companies that have reported so far have beaten estimates.
Prices for 10-Year Treasurys fell, raising yields to 1.30% from Tuesday’s 1.22%. Treasury prices and yields move in opposite directions.
Oil prices took on $3.03 to $70.23 U.S. a barrel.
Gold prices lost seven dollars to $1,804.40 U.S. an ounce.