Traders on the floor of the NYSE, July 17, 2023.
Source: NYSE
The Dow Jones Industrial Average was higher Tuesday as traders digested better-than-expected corporate earnings.
The Dow added 304 points, or 1%, aided by a 5.1% jump in Microsoft. The Nasdaq Composite climbed 0.5%, while the S&P 500 gained 0.5%. The Dow was headed for a seventh straight day of gains.
Bank of America reported better-than-expected earnings for the second quarter, thanks to higher interest rates. The bank stock added 4.6%. Bank of N.Y. Mellon’s earnings also exceeded expectations, helping lift shares 4.3%.
Morgan Stanley stock added 6.2% after a beat on both revenue and adjusted earnings per share thanks to record revenue in its wealth management segment. PNC Financial, added 1.2% on the back of mixed second-quarter numbers. J.B. Hunt is slated to report after the bell.
Overall, the earnings season is off to a strong start. Of the S&P 500 that have reported, 84% exceeded profit estimates, according to FactSet.
Meanwhile, investors are seemingly shaking off soft data from the Commerce Department out Tuesday. Advance retail sales ticked up 0.2% month-over-month in June, while economists polled by Dow Jones forecasted a 0.5% increase.
“Americans have gotten relief at the gas pump, but also don’t have an excessive demand for consumer goods,” said David Russell, vice president of market intelligence at TradeStation. “This is modestly positive news for investors worried about the Fed needing to hike after July. Goldilocks marches on.”
The season comes as recent inflation data boosts the case for a soft-landing scenario among many investors, and stocks continue this year’s rally.
Correction: David Russell is vice president of market intelligence at TradeStation. An earlier version of this story misspelled his name.