US Markets Jump Higher on Earnings Enthusiasm(JULY 19, 2022)

U.S. markets soared as investors bet on strong quarterly earnings lifting equities. The Dow spiked 754 points or over 2.4%, while the S&P 500 had its biggest one-day gain since June 24, and the Nasdaq jumped 3.1%.

It was a broad-based rally, with all but two of the stocks in the Dow in the green. Boeing (BA) shares were 5% higher after the aircraft maker announced a second big plane sale this week. Shares of Goldman Sachs (GS) and Nike (NKE) were also up 5%. Shares of other financial firms and retailers climbed as well. IBM (IBM) and Johnson & Johnson (JNJ) were the only laggards in the index after scaling back their full-year outlooks.

Big tech stocks advanced. Shares of all the FAAMG companies rose more than 1%. Salesforce (CRM) and Tesla (TSLA) shares took off. Twitter (TWTR) shares were higher after a judge in Delaware agreed with the company’s request for a speedy trial in its lawsuit against Elon Musk for canceling his $44 billion purchase of the social media giant. Netflix (NFLX) shares climbed ahead of its after-the-close earnings release, and they're skyrocketing in extended trading as its subscriber loss was not as much as expected (more below).

The market enthusiasm helped oil futures bounce back from earlier lows to finish up 1.5%. That boosted fossil fuel company stocks, with shares of Marathon Oil (MRO) and Hess (HES) gaining more than 4%. Shares of cruise lines, airlines, casinos, and other travel-related firms climbed.

Few S&P 500 Stocks Post Losses

Fewer than 10 stocks in the S&P 500 were in negative territory. Shares of Signature Bank (SBNY) fell as the bank’s total deposits dropped.

Bond yields rose. The rally in cryptocurrencies continued, with Bitcoin trading above $23,000 for the first time in a month. Prices for Ether and other major digital coins registered solid gains as well.

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