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US Market Wrap 17 October 2018

Posted by Billy Macris on 17-Oct-2018 11:10:28

US stocks rose sharply on Tuesday which helped the market recover from last week’s sell off, as investors digested the release of strong quarterly results from some of the larger companies. The Dow finished higher by 2.17%, the S&P 500 higher by 2.15% and the Nasdaq higher by 2.8%. 

All of the 30 stocks on the Dow finished in positive territory as Nike shares rose 3.32 percent and Visa shares rose 3.29 percent followed closely by some of the tech names, Intel and Microsoft rose 3.17 percent and 3.16 percent, respectively. The technology index was the best performer out of the 11 S&P 500 sectors rising 3.02 percent as Google rose 2.78 percent, Facebook rose 3.43 percent, Twitter finished 4.40 percent higher and Adobe soared 9.52 percent after reporting earnings on Monday.

Tesla shares rose 6.55 percent after a judge approved Tesla CEO Elon Musk's settlement with the Securities and Exchange Commission which involves two $20 million fines payable by Musk and the company, Musk stepping down as chairman for at least three years and a system to monitor his to the public through social media.

The healthcare sector also got a boost rising 2.90 percent following United Health’s positive earnings release which saw the stock rise 4.82 percent. Its peer in the industry Johnson & Johnson rose 2.12 percent after the medical device company reported positive earnings. Financials also got a boost from the earnings releases as Goldman Sachs shares rose 3.01 percent, whilst Morgan Stanley shares rose 5.71 percent, its best day in two years, after the investment bank reported a 15 percent jump in revenue year on year.

In after-hours trading, Netflix shares soared 15 percent higher as the media services provider beat on earnings and third quarter subscriber growth expectations. The company announced it added a net of 6.96 million subscribers in the most recent quarter beating its own forecast of 5.0 million.

Chart of the day: Adobe Inc. (ADBE) daily chart

adbe 17.10.18

Topics: +U.S. Market Wrap