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U.S. stock indexes gained on Tuesday as major companies continued to report strong third-quarter earnings, easing concerns that persistent COVID cases and rising costs would derail corporate America’s profit recovery.
The Dow Jones Industrials recovered 131.62 points to 35,390.23.
The S&P 500 gained 20.74 points to 4,507.20.
The NASDAQ Composite gained 59.69 points to 15,081.50.
Dow member Travelers saw its shares gain more than 2% after the insurance company’s quarterly earnings report topped expectations.
Johnson & Johnson also beat third-quarter earnings expectations by 25 cents per share. The health-care stock ticked up around 2%.
Procter & Gamble continued the bullish trend with better-than-expected earnings, but its shares dipped more than 1%. The consumer products giant said it is raising prices to cover rising commodity and freight costs and warned that inflation may continue.
Elsewhere, Walmart shares gained more than 1% after Goldman Sachs added the big box retailer to its conviction buy list, saying the stock could rally nearly 40%.
As of Tuesday morning, 82% of S&P 500 companies that have reported earnings beat expectations, according to FactSet. Taking into account those reports and estimates for those to come, third-quarter profit growth will come in at 30%,
Prices for 10-year Treasurys lost some ground, raising yields to 1.62% from Monday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices faded 29 cents to $82.15 U.S. a barrel.
Gold prices regrouped 12.10 to $1,777.80 U.S. an ounce.
Markets Ahead on Earnings
