Wall Street is recovering and making profits by leaps and bounds

A Wall Street sign outside the New York Stock Exchange in New York City, New York, US, October 2, 2020. REUTERS/Carlo Allegri

(Reuters) – Major US stock indexes extended gains on Tuesday as more companies reported better-than-expected earnings, providing some relief to investors worried about rising inflation affecting the company’s bottom line.

Hasbro Inc . gaming company (HAS.O) It beat market estimates for quarterly earnings, sending the game maker’s shares up 0.8%. Read more

Halliburton shares rose 1.2% after the oilfield services provider posted a 41% increase in quarterly adjusted earnings. Read more

“Earnings came in better than lower expectations,” said Paul Kim, CEO of Simplify Asset Management in New York.

“So we don’t see the sting of monetary policy tightening and inflation affecting revenue as much as we fear.”

Johnson & Johnson shares lost 1.6 percent, reversing earlier gains. The healthcare giant reported better-than-expected earnings and sales but cut its profit forecast for the year due to a stronger US currency. Read more

The strong dollar also weighed on IBM Corp.’s shares of hardware and IT services, which beat quarterly revenue forecasts on Monday, but warned that the blow from forex for the year could be around $3.5 billion.

IBM shares fell 6.5%.

The US dollar hovered above a one-week low on Tuesday, posting its third consecutive day of declines as markets reduced prospects for a full Federal Reserve interest rate hike by a percentage point this month.

Rising inflation initially prompted markets to raise interest rates by 100 basis points at the upcoming Fed meeting later this month, with some policymakers even signaling a 75 basis point increase. Read more

Strengthening the main indicators, Apple (AAPL.O) It rose 2.5%, reversing almost all of its declines from the previous session, when a report said the company plans to slow hiring and spending growth next year. Read more

Other high-growth stocks such as Tesla Inc (TSLA.O)Microsoft Corporation (MSFT.O)Meta Platforms Inc (META.O) and Amazon.com Inc (AMZN.O) It was also trading higher.

This earnings season, analysts expect overall S&P 500 earnings to grow 5.8% year-over-year, down from estimates of 6.8% at the start of the quarter, according to Refinitiv data.

At 1:56 p.m. ET, the Dow Jones Industrial Average (.DJI) The Standard & Poor’s 500 Index rose 644.72 points, or 2.07%, to 3,1717.33 points (.SPX) It rose 93.71 points, or 2.45%, to 3,924.56 points, and the Nasdaq Composite (nineteenth) It added 322.62 points, or 2.84%, to 11,682.67 points.

All 11 major S&P 500 sector indices rose, with at least eight adding more than 2% each.

Boeing Company (ban) It jumped 4.8% on plans by private equity firm 777 Partners to buy up to 66 more Boeing 737 Max aircraft. Read more

Netflix (NFLX.O) Shares rose 4.6% before their results after the market closed.

Advance issues outnumbered decliners on the New York Stock Exchange by 5.43 to 1 while in the Nasdaq, the ratio was 3.97 to 1 in favor of advanced companies.

The S&P 500 hit a new 52-week high and 30 new low; The Nasdaq recorded 27 new highs and 39 new lows.

(covering Echo Wang) in New York. Additional reporting by Shreyachi Sanyal and Anirudha Ghosh in Bengaluru. Editing by Aaron Koyor, Shunak Dasgupta and Deepa Babington

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