US STOCKS-Wall Street ends higher, powered by strong earnings, economic cheer

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

 (For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
    * Chips, energy, smallcaps lead gains
    * United Air, Chipotle, Coca-Cola, Verizon beat earnings
estimates
    * Treasury yields rebound after 20-year auction, boosting
banks
    * Texas Instruments falls in post-market trade after results
    * Indexes up: Dow 0.83%, S&P 0.82%, Nasdaq 0.92%

 (Updates with closing prices)
    By Stephen Culp
    NEW YORK, July 21 (Reuters) - Wall Street stocks posted
their second straight daily gain on Wednesday, with robust
corporate earnings and renewed optimism about the U.S. economic
recovery fueling a risk-on rally.
    All three major U.S. stock indexes added to their previous
session's advance, placing all three within 1% of their all-time
closing highs.
    Economically sensitive smallcaps  .RUT , semiconductors
 .SOX  and financials  .SPSY  outperformed the broader market.
    "It’s a seesaw going on between great earnings and a
recovering market and concerns over whether the economy is going
to slow down because of the (COVID-19) Delta variant," said
Peter Tuz, president of Chase Investment Counsel in
Charlottesville, Virginia. "But we’re seeing strong earnings
with generally positive guidance, and the feeling that (the
Delta variant) can be managed."
    A rebound in travel helped fuel United Airlines'  UAL.O 
revenue beat, boosting its stock by 3.8%.
    The S&P 1500 Airlines index  .SPCOMAIR  gained 3.3%, while
the S&P 1500 Hotels, Restaurant and Leisure index  .SPCOMHRL 
advanced 2.9%.
    "Earlier in the week those stocks suffered because of
renewed fears that travel will slow down and all related
industries will suffer, but those fears have gone away," Tuz
added. "Demand is continuing as expected, I don’t think the
Delta fear is causing people to change their plans."
    Benchmark U.S. Treasury yields continued their bounce from
five-month lows following a weak 20-year bond auction, which 
benefited rate-sensitive banks.  urn:newsml:reuters.com:*:nL1N2OX1T9
    Wrangling in Washington over the passage of a bipartisan
$1.2 trillion infrastructure package progressed as Senate
Democrats moved toward a planned procedural vote despite
Republican appeals for a delay.  urn:newsml:reuters.com:*:nL1N2OW1TM
    The Dow Jones Industrial Average  .DJI  rose 286.01 points,
or 0.83%, to 34,798, the S&P 500  .SPX  gained 35.63 points, or
0.82%, to 4,358.69 and the Nasdaq Composite  .IXIC  added 133.08
points, or 0.92%, to 14,631.95.
    Of the 11 major sectors in the S&P 500, energy stocks
 .SPNY  were the big winners, jumping 3.5% with the help of
surging crude prices  CLc1 .  O/R 
    Second-quarter reporting season has shifted into overdrive,
with 73 of the companies in the S&P 500 having posted results.
Of those, 88% have beaten consensus expectations.
    Among the winners, Chipotle Mexican Grill  CMG.N  jumped
11.5% after the burrito chain beat earnings estimates and
forecast strong current-quarter sales growth. The stock boasted
the S&P 500's largest percentage gain. urn:newsml:reuters.com:*:nL4N2OW38E
    Coca-Cola  KO.N  rose 1.3% after raising its full-year
forecast.  urn:newsml:reuters.com:*:nL4N2OX2BG
    Interpuplic Group of Companies  IPG.N  jumped 11.3% in the
wake of its upbeat earnings release.
    Drugmaker Johnson & Johnson  JNJ.N  forecast $2.5 billion in
sales from its one-shot COVID vaccine this year and hiked its
sales estimates. It closed up a modest 0.6%.  urn:newsml:reuters.com:*:nL4N2OX2A8
    On the losing side, Netflix Inc  NFLX.O  late Tuesday
reported slowing subscriber growth, sending its shares down
3.3%, the second-largest percentage loser in the S&P 500.
 urn:newsml:reuters.com:*:nL1N2OW2GQ
    Harley-Davidson's  HOG.N  second-quarter earnings release
showed its turnaround plan appeared to be making progress, but
the company lowered its operating income guidance due to tariffs
from Europe, its second-biggest market. Its stock dropped 7.2%.
 urn:newsml:reuters.com:*:nL4N2OX276
    Texas Instruments  TXN.N  dipped more than 3% in extended
trading following results posted after the bell.
    Advancing issues outnumbered declining ones on the NYSE by a
2.92-to-1 ratio; on Nasdaq, a 3.21-to-1 ratio favored advancers.
    The S&P 500 posted 38 new 52-week highs and no new lows; the
Nasdaq Composite recorded 66 new highs and 34 new lows.
    Volume on U.S. exchanges was 9.13 billion shares, compared
with the 10.17 billion average over the last 20 trading days.   
  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. stock market's rising valuation    https://tmsnrt.rs/3BswcD2
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Stephen Culp;
Additional reporting by Devik Jain and Shreyashi Sanyal in
Bengaluru; Editing by Cynthia Osterman)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.