As earnings season kicks off, the first companies to report are mostly those within the financial sector. Though the companies that reported today were a mixed bag, they helped start off the season on a strong note.
JPMorgan Chase’s Q3 revenues topped analyst expectations and hitting a record level, its shares jumping 3%. United Health also topped expectations and raised its full-year guidance–shares of the Dow component gained 8.2%, it’s largest one-day gain in over a decade. Johnson & Johnson’s Q3 numbers were boosted by sales of its cancer drug and other prescription medications. J&J saw its stock climb 1.6%.
Although analysts expected to see a 3.2% decline in S&P 500 earnings from a year ago, it appears that corporate earnings started off much better than expected. The Dow surged 237.44 points, or 0.9%, closing above the key level of 27,000, the S&P 500 advanced 1% and the Nasdaq gained 1.2%.
Of the 34 companies in the S&P 500 reporting today, 29 have reported figures above analyst earnings expectations. Today’s rally comes amid a backdrop of uncertainties in US-China trade negotiations and bearish analyst expectations. The season just started, but a strong start it is so far.
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