NEW YORK: Wall Street stocks added to records early Wednesday following a trove of corporate earnings that largely reaffirmed confidence that US tax reform would lift corporate profits in the medium-term.
“There is a real appreciation for the boost to 2018 earnings growth estimates on the back of the tax reform plan, and, for the most part, corporate America is validating the increased expectations,” said Briefing.com analyst Patrick O’Hare, commenting on a wave of earnings reports.
About 25 minutes into trading, the Dow Jones Industrial Average had gained 0.5 percent to 26,351.64.
The broad-based S&P 500 rose 0.3 percent to 2,846.68, while the tech-rich Nasdaq Composite Index inched higher to 7,462.28. The S&P 500 and Nasdaq finished at records Tuesday.
Early gainers Wednesday following earnings included Comcast, General Dynamics and Abbott Laboratories.
But United Continental plunged 10.2 percent after disclosing a plan to boost US seating capacity by four to six percent this year, a move that raised investor worries about overcapacity.
Texas Instruments also dropped, losing 5.8 percent after its forecasts disappointed many analysts who were expecting a more bullish outlook after tax reform.
Source: Brecorder.com
