A street sign for Wall Street near the New York Stock Exchange (NYSE)
New York - AFP
US stocks rose in early trade Tuesday, rallying from Monday's sharp losses following generally solid earnings reports from big banks and Johnson & Johnson.
About 45 minutes into trade, the Dow Jones Industrial Average stood at 16,394.28, up 73.21 points (0.45 percent).
The broad-based S&P 500 advanced 9.75 (0.52 percent) to 1,884.89, while the tech-rich Nasdaq Composite Index gained 30.11 (0.71 percent) at 4,243.77.
Briefing.com analyst Patrick O'Hare said that the trade was likely benefiting from "a budding sense that the stock market is oversold on a short-term basis and due for a rebound of some kind."
Dow member JPMorgan Chase dropped 1.0 percent as third-quarter earnings of $1.36 per share missed analyst expectations by two cents. The company's earnings of $5.6 billion came after a rare $380 million loss in the year-ago period, when the company had a huge legal charge.
Citigroup rose 1.3 percent as third-quarter earnings came in at $1.15 per share, three cents above analyst estimates following a nearly 10 percent rise in revenues. The company is ending consumer banking in 11 markets, including Japan.
Wells Fargo, another giant bank, reported a 2.0 percent rise in earnings to $5.4 billion in results that met expectations. Shares fell 1.5 percent.
Dow member Johnson & Johnson fell 2.0 percent despite the healthcare-products firm's third-quarter earnings of $1.66 per share, well above the $1.44 projected by analysts.
Bond prices rose a day after the bond market's holiday closure. The yield on the 10-year US Treasury dropped to 2.29 percent from 2.31 percent Friday, while the 30-year fell to 2.98 percent from 3.04 percent. Bond prices and yields move inversely.