Wal-Mart, Cisco earnings drive U.S. stocks higher
Strong quarterly earnings from Wal-Mart Stores, Cisco Systems and other companies drove U.S. stocks higher Thursday as the market bounced back from a modest decline the day before. Technology companies, consumer product makers and health care stocks accounted for some of the biggest gains. Energy and utilities stocks declined.
"Investors have been looking to buy on weakness and they got a little bit of it," said Erik Davidson, chief investment officer for Wells Fargo Private Bank.
Wal-Mart (WMT) jumped 7.4 percent after the retail giant reported strong third-quarter results and raised its annual profit outlook. The company said online sales continued to surge and food sales were strong as well. Its shares posted their biggest gain since May 2016, rising $7.43 to $97.26. E-commerce grew 50 percent, although the retailer still lags far behind Amazon in the online sales channel.
"Walmart's online performance continues to validate its substantial investments in this critical channel, including its purchase of Jet.com," Moody's lead retail analyst Charlie O'Shea said in a note.
Technology sector stocks, which have done far better than the rest of the market this year, accounted for some of the biggest gains in early trading. Data storage company NetApp (NTAP) led the sector, vaulting 16 percent as investors applauded its quarterly results and forecasts. The stock rose $7.34 to $53.16.
The Standard & Poor's 500 index rose 18 points, or 0.7 percent, to 2,583 as of 11:27 a.m. Eastern Time. The Dow Jones industrial average gained 184 points, or 0.8 percent, to 23,455. The Nasdaq composite index added 78 points, or 1.2 percent, to 6,785. The Russell 2000 index of smaller-company stocks picked up 22 points, or 1.5 percent, to 1,486. A day ago, stocks suffered their worst decline in two months.
Cisco Systems (CSCO) leapt 6.2 percent, its biggest move since February 2016, after the internet gear maker reported a bigger profit than analysts expected and said revenue should grow in its next quarter after two years of declines. The stock added $2.11 to $36.22.
Procter & Gamble (PG) was up 1.3 percent after activist investor Nelson Peltz said an independent count showed he won election to the consumer products company's board. The shares gained $1.15 to $89.38.
Best Buy (BBY) slumped 6.1 percent after the electronics retailer's latest quarterly results and forecast for the holiday season fell short of estimates. Its shares slid $3.48 to $53.82.
