NEW YORK: Wall Street edged higher on Tuesday amid a string of better-than-expected earnings reports, bringing the three major stock indices closer to fresh all-time record levels.
Investors also sent US chip maker Qualcomm soaring more than 20 percent — its best one-day performance in nearly 20 years — after it joined iPhone maker Apple in announcing a settlement to the two companies’ sprawling legal battle over royalty payments, reports AFP.The benchmark Dow Jones Industrial Average added 0.3 percent, rising to 26,452.66. The S&P 500 rose a hair to 2,907.06, leaving it just 0.8 percent below an all-time high set in September of last year.
Meanwhile, the tech-heavy Nasdaq added 0.3 percent 8,000.23, crossing the 8,000-point mark for the first time since October.
“The mood was really risk-on,” Karl Haeling of LBBW told AFP.
“There is a high degree of nervousness and worry right now in the market and a lot of cash on the sidelines.”
Investors believe recent US economic news has been favorable but still expect a recession in the second half of next year, said Haeling, meaning the
positive momentum on Wall Street might not be what it seems.“Even though the earnings are beating earnings expectations, they are beating a low bar and the revenue side has not been great,” he added.
Dow member Johnson & Johnson rose 1.1 percent after beating analyst expectations for earnings.