US Stocks Climb on Earnings Optimism

US Stocks Climb on Earnings Optimism

The US stocks climbed up broadly over the course of the trading day on Tuesday, 03 August 2021, bouncing back from earlier losses to bring the S&P 500 to a new closing high, thanks to strong second-quarter corporate earnings and expectation that the Federal Reserve will not begin scaling back stimulus anytime soon. However, market gains capped amid concerns about the rapid spread of the delta variant of the coronavirus.

At the close of trade, the Dow Jones Industrial Average index advanced 278.24 points, or 0.8%, to 35,116.40. The S&P 500 index increased 35.99 points, or 0.82%, to a record close of 4,423.15.

The tech-heavy Nasdaq Composite Index was up 80.23 points, or 0.55%, to 14,761.29.

Total 10 of 11 S&P 500 sectors inclined, with energy (up 1.83%) was top gainer, followed by healthcare (up 1.4%), industrials (up 1.38%), financials (up 1.13%), consumer discretionary (up 0.77%), and information technology (up 0.69%) sectors.

The top five advancing stocks were Arcturus Therapeutics Holdings Inc. (up 68.06%), Flora Growth Corp (up 62.53%), Wilhelmina International Inc (up 39.82%), Translate Bio Inc (up 29.23%), and Hollysys Automation Technologies (up 28.19%), while bottom five declining stocks included E-Home Household Service Holdings (down 61.1%), ABVC Biopharma Inc (down 52.16%), Neuronetics Inc (down 41.98%), Newtek Business Services Corp (down 27.35%), and Moxian Inc (down 24.72%).

The higher close on Wall Street came as solid earnings season has helped bolster investors’ optimism that stocks can continue to grind higher. Sentiments were also supported by the expectation of continued support from central banks and economic data that still shows growth to further support markets.

Shares of Under Armour jumped 7.5% to $22.70 after the company reported it swung to a profit in the second quarter, boosted by strong sales among its golf, training, and running products.

Among Indian ADR, Tata Motors added 3.63% to $20.56, HDFC Bank added 1.96% to $72.13, Wipro added 2.02% to $8.57, Vedanta added 2.29% to $16.95, Dr Reddys Labs added 1.07% to $63.29, and INFOSYS added 2.74% to $22.88. ICICI Bank rose 2.17% to $18.81 and WNS Holdings added 0.25% to $80.89.