© Reuters. The spread of coronavirus (COVID-19) in New York
By Medha Singh
(Reuters) – US equities rose on Wednesday as data showing an expansion in the service industry last month boosted optimism from Disney surprise quarterly results and positive results from several healthcare companies.
A reading of the ISM̵
Walt Disney Co.’s (N 🙂 shares jumped 8.9% to reach a height of more than five months because the revenue cuts for their parks and media networks were not as bad as feared.
“Disney’s moves helped drive market progress. In general, revenues have been better than expected,” said Sam Stovall, chief investment officer at CFRA Research in New York.
The pharmacy operator and health insurance company CVS Health Corp (N 🙂 topped the estimates for the quarterly result and raised its full-year forecast, while Humana Inc (N 🙂 and the pharmaceutical manufacturer Regeneron Pharmaceuticals Inc (O 🙂 also published profit forecasts.
Johnson & Johnson (N 🙂 increased by about 0.7% after it said the US government would pay over $ 1 billion for 100 million doses of its investigative coronavirus vaccine.
Corporate performance that is better than feared and a sharp increase in shares in heavy technology companies have driven a stimulus-driven rally in Wall Street’s main index, giving the S&P 500 within 2.5% of its record high hit in February.
Earlier in the day, the ADP National Employment Report showed that private wages rose by 167,000 in July, well below economists’ expectations of a 1.5 million increase. The ADP report is considered a precursor to the monthly job report on Friday.
Investors have been worried about signs that US economic activity is rising in the middle of an increase in COVID-19 infections in parts of the country, which strengthens the case for more financial support.
Negotiators in the White House on Tuesday promised to work “around the clock” with the Congress Democrats to try to reach an agreement on coronavirus relief packages by the end of this week.
Economy (), industry () and materials () stocks, which track economic growth, outperformed the major S&P sectors.
The energy sector () rose the most as oil prices hit their highest levels since the beginning of March. [O/R]
At 10:15 ET, the Dow Jones Industrial Average () was up 252.77 points, or 0.94%, at 27,081.24, the S&P 500 () was up 19.19 points, or 0.58%, at 3,325.70 . Nasdaq Composite () increased 39.58 points, or 0.36%, to 10,980.74.
Electric truck manufacturer Nikola Corporation (O 🙂 decreased by 10.1% after reporting a major quarterly loss in its initial results as a listed company.
Promotional issues outperformed the reduction by a 2.57-to-1 ratio on the NYSE and by a 1.80-to-1 ratio on the Nasdaq.
The S&P index recorded 40 new 52-week highs and no new lows, while the Nasdaq recorded 168 new highs and seven new lows.
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