Wall Street ends higher; bank stocks rise with Treasury yields

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  • Pfizer falls on disappointing forecasts
  • Coty wins after raising earnings estimates
  • Meta-platforms down for the fourth consecutive session
  • Indices: Dow +1.06%, S&P 500 +0.84%, Nasdaq +1.28%

Feb 8 (Reuters) – Wall Street ended sharply higher on Tuesday, led by Apple and Microsoft, while a jump in Treasury yields lifted bank stocks ahead of a key inflation reading this week.

The benchmark S&P 500 and the tech-heavy Nasdaq reversed early losses and gained in the latter part of the session, with Amazon.com Inc gaining 2.2%, and Apple (AAPL.O) and Microsoft ( MSFT.O) both up more than 1%.

The S&P 500 Banking Index (.SPXBK) rebounded 1.9% after the benchmark 10-year US Treasury yield hit its highest level since November 2019 on rising expectations that the US Federal Reserve will begin to tighten its monetary policy.

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Shares of Bank of America Corp (BAC.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo all gained more than 1%.

The S&P 500 energy sector index (.SPNY) fell 2.1% as investors feared that the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer. Read more

French President Emmanuel Macron’s upbeat comments about his meeting with Russian President Vladimir Putin over the Ukraine crisis also lowered oil prices and reduced anxiety on Wall Street, chief investment officer Scott Ladner said. of Charlotte-based wealth management firm Horizon Investments. Read more

“Today’s gain is probably due to some of Macron’s headlines, but it’s also just recognition that the economy is in pretty good shape, and we probably overdid it a bit at the time. drop,” Ladner said.

With Tuesday’s rise, the S&P 500 remains down about 5% so far this year, while the Nasdaq is down about 9%.

U.S. consumer price data, due out Thursday, is expected to hit a four-decade high of 7.3%. The numbers follow strong U.S. jobs data last week, which added to investor concerns that the Fed will tighten rates faster than expected.

Concerns over aggressive US central bank policy tightening, geopolitical tensions in Ukraine and mixed results from Big Tech have weighed on major US indices since the start of the year.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 25, 2022. REUTERS/Brendan McDermid/File Photo/File Photo

The Dow Jones Industrial Average (.DJI) rose 1.06% to end at 35,462.78 points, while the S&P 500 (.SPX) gained 0.84% ​​to 4,521.52.

The Nasdaq Composite (.IXIC) climbed 1.28% to 14,194.46.

Earnings were mixed on Tuesday, with Pfizer Inc (PFE.N) down after the drugmaker’s annual sales forecast for its COVID-19 vaccine and antiviral pills fell short of estimates.

Amgen Inc (AMGN.O) jumped nearly 8% after the company announced a buyout of up to $6 billion and expected profits to more than double by 2030. Read more

Facebook owner Meta Platforms (FB.O) fell 2.1% after billionaire investor Peter Thiel decided to step down from the company’s board, leading to a fourth day of losses on the stock after its grim predictions last week wiped out billions of dollars in market value. . Read more

Peloton Interactive Inc (PTON.O) soared 25%, despite a cut to its revenue forecast as the exercise bike maker said it would replace its chief executive and cut jobs in a bid to boost sales falling. Read more

Coty Inc (COTY.N) jumped 8% after the cosmetics seller raised its 2022 profit forecast. read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 1.58 to 1; on the Nasdaq, a ratio of 1.71 to 1 favored advancers.

The S&P 500 posted 29 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 60 new highs and 108 new lows.

Volume on U.S. exchanges was 10.3 billion shares, compared to an average of 12.3 billion over the past 20 trading days.

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Reporting by Bansari Mayur Kamdar in Bengaluru and Noel Randewich in Oakland, California; Editing by Maju Samuel and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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