Wall Street rises as upbeat earnings, forecasts lift sentiment
By Shubham Batra and Shashwat Chauhan
(Reuters) — Wall Street's main stock indexes advanced on Tuesday as upbeat forecasts from Verizon (NYSE:VZ), Coca-Cola (NYSE:KO) and others boosted optimism about corporate America's health in the face of a slowing economy and higher inflation.
Verizon surged 9.1% after the U.S. wireless carrier raised its annual free cash flow forecast, while General Electric (NYSE:GE) rose 6.9% after the aircraft engine manufacturer lifted its full-year profit forecast.
Coca-Cola advanced 2.7% on raising its annual sales outlook, while industrial goods maker 3M gained 5.2% after lifting its full-year adjusted profit forecast.
Aerospace major RTX jumped 6.1% after it reported better-than-expected quarterly earnings.
«As we've seen interest rates persistently rise, there has been this expectation of a dramatic slowdown in the economy which would impact earnings and we're not seeing it yet,» said Hugh Anderson, managing director at HighTower Advisors.
«The 'yet' part is what's got everybody scratching their heads, you've got relatively strong economic numbers coming in for the third quarter and numerous companies in various sectors exceeding analysts expectations.»
The yield on benchmark 10-year Treasury notes edged up to 4.86% during the session. It had breached the 5% mark on Tuesday.
An S&P Global survey showed U.S. business output ticked higher in October as the manufacturing sector grew after contracting for five straight months while services activity accelerated modestly amid signs of easing inflationary pressures.
Rate-sensitive megacaps including Tesla (NASDAQ:TSLA), Meta Platforms (NASDAQ:META) and Amazon.com (NASDAQ:AMZN) rose between 0.2% and 2.1%.
U.S. technology giants are expected to
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