Stocks bolted higher Tuesday, as the Dow surged more than 200 points in an opening rally and gains from Adobe (ADBE) and the FANG stock tech leaders helped the Nasdaq retake the 7,500 mark.
XAll four FANG stocks opened to gains of more than 1%, with Netflix (NFLX) climbing ahead of its earnings report due out after today's close. Marijuana industry leaders rallied for a second day, with Tilray (TLRY) up 3% and Cronos Group (CRON) spiking 5% in opening trade.
The Dow scrambled 0.8% higher as Goldman Sachs (GS), Johnson & Johnson (JNJ) and UnitedHealth (UNH) rose after early earnings reports. Walmart (WMT) jumped 0.7%, despite trimming its 2019 earnings guidance.
The Nasdaq Composite easily led early trade, surging 1% at the starting bell. The S&P 500 jumped 0.8%.
Adobe did the heavy lifting on both the Nasdaq 100 and the S&P 500, up more than 6% after affirming fourth-quarter guidance late Monday. Morgan Stanley (MS) surged 3.8%to near the top of the S&P 500 after scoring a broad third-quarter beat on both its revenue and earnings lines.
The third-quarter reporting season gathers more momentum after today's close with, in addition to Netflix, United Airlines (UAL), Dow stock IBM (IBM) and railroad CSX (CSX) reporting late.
Dow Stocks: UnitedHealth, Goldman Jump
The nation's largest medical insurer, UnitedHealth Group, ran ahead of other Dow stocks. It leapt 3.4% after reporting a strong third-quarter performance. Johnson & Johnson vaulted 2.4% higher on third-quarter results that also topped analyst targets.
Walmart stepped up 1.1%. The retail giant pared its adjusted earnings guidance to between $4.65 and $4.80 a share for the fiscal year ending in January, down from prior guidance of $4.90 to $5.05. The company said prior guidance failed to include the impact from its purchase of a majority stake in India e-commerce operation Flipkart.
Walmart also announced it would launch an online automotive specialty store in partnership with Advance Auto Parts (AAP). Walmart shares are shaping a handle on an eight-month cup-with-handle base. Advance Auto slipped 0.9% in early trade.
Another Dow stock, Goldman Sachs, swung 1% higher after generally better-than-expected third-quarter results. The investment bank reported earnings of $6.28 per share on revenue of $8.65 billion — both well above analyst expectations. Goldman shares ended Monday down 22% from a March high.
Off the Dow, stocks taking early hits after earnings reports included W.W. Grainger (GWW), down 21.7%, Domino's Pizza (DPZ), down 2.8%, and BlackRock (BLK), with a 5.5% decline.
IBD 50: UnitedHealth, Gruhub Lead
Among IBD 50 stocks, UnitedHealth led and Grubhub (GRUB) rose to gains of more than 3%. Grubhub was rebounding in powerful trade after dropping to test support at its 40-week moving average. The online takeout food service reports its third-quarter results on Oct. 25.
Oil Prices Retreat, Gold Rises; Nikkei Rebounds
Oil prices pulled back, with West Texas Intermediate down 0.6% to $71.38 per barrel. Brent crude also dipped 0.6% to $80.29. Bonds eased, sending the 10-year-yield up 1 basis point to 3.17%. Gold edged up 0.2%, continuing its three-week advance.
Overseas, China's markets ended tightly mixed. Tokyo's Nikkei 225 strode ahead 1.3%, as bargain hunters began to step in after two weeks of profit-taking following the index's 27-year high.
Europe's markets strengthened in afternoon trade, after strong wage and employment data countered a lack of confidence in ongoing Brexit negotiations. Frankfurt's DAX jumped 0.8%. The CAC-40 in Paris climbed 0.8%. And London's FTSE 100 reversed early losses and gained 0.1%.
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