Market closes sharply higher, snaps modest losing streak
U.S. stocks closed sharply higherThursday, snapping a twodaylosing streak.
Investors cheered strong quarterly earnings from Wal-Mart Stores, Cisco Systems and other companies.
Technology stocks accounted for much of the market’s gains, whichhelped lift the Nasdaq composite to its first record high in justover a week.
Health care companies and consumer product makers also posted solid gains. Energy and utilities stocks lagged. Oil prices declined.
The rally knocked the major stock indexes into positive territory for the month, as investors seized on the encouraging companyearnings news to buy shares a day after the market suffered its worstdecline in two months.
“Investors have been looking to buy on weakness, and they got a little bit of it,” said Erik Davidson, chief investment officer for WellsFargo Private Bank.
“The desire to buy in dips has been very, very strong and we’ve seena little bit of a dip.”
The Standard & Poor’s 500 index rose 21.02 points, or 0.8 percent, to 2,585.64. The Dow Jones industrial average gained 187.08 points, or 0.8 percent, to 23,458.36. The Nasdaq added 87.08 points, or 1.3percent, to 6,793.29.
The Russell 2000 index of smaller-company stocks picked
up 22.79 points, or 1.6 percent, to1,486.88.
The major stock indexes were poised to rebound from the start of trading Thursday following solid gains in markets in Europe and Asia. Investors shrugged off the prior day’s doldrums and welcomed the latest batch of strong corporate earnings or outlooks.
Data storage company NetApp vaulted 15.9 percent as investors applauded its quarterly results and forecasts.
The stock was the biggest gainer in the S&P 500 and one of the reasons technology stocks posted some of the biggest gains. Its shares rose $7.29 to$53.11.
Cisco Systems also delivered a bigger profit than analystsexpected.
The internet gear maker alsosaid revenue should grow in the current quarter after twoyears of declines.
Cisco shares climbed 5.2 percent, its biggest gain since February 2016. The stock added$1.77 to $35.88.
Wal-Mart also got a big boost, climbing 10.9 percent, its biggest gain since October 2008. In addition to posting strong third-quarter results, the retail giant raised its annual profit outlook. The stock rose$9.79 to $99.62.
A forecast for better fullyear sales helped lift J.M. Smucker 9.5 percent. The food company’s shares gained $10.14to $116.65.
“We’ve had very good earnings from Amazon, Google, Nvidia, Tencent, just to name a few,” said Tom Martin, senior portfolio manager with GlobaltInvestments.
“Even with Wal-Mart, you’re seeing a very strong reaction to the positives that are goingon there.”
The quarterly report card from some companies failed to put traders in a buying mood.
Best Buy fell 3.6 percent after the electronics retailer’s latest quarterly results and forecastfor the holiday season fellshort of estimates.
The stock slid $2.05 to $55.25.
Apart from earnings, investors had their eye on developments in Washington, where the House voted to pass a near $1.5 trillion package overhauling corporate and personal taxes.
Thefocus now moves to the Senate, where lawmakers were working on a different version of a tax overhaul bill. Both the House and Senate versions of the legislation wouldslash the 35 percent corporate tax rate to 20 percent andreduce some personal taxpayers’rates.
Expectations of a big business tax cut have helped lift the market higher this year, though the Thursday afternoon House vote didn’t move the markets much.
“To have a bit of positive news on tax reform is helpful, but there’s still a long way to go with that,” Mr. Martin said.
Traders bid up shares in Procter & Gamble after activist investor Nelson Peltz said an independent count showed he won election to the consumer products company’s board.
The stock added $1.02, or 1.2 percent, to $89.25.
Time soared 28.1 percent after The New York Times reported that Meredith Corp. will make another offer for the publisher. Time gained $3.55 to $16.20.