Wall Street gains on solid earnings and dollar drop

On Thursday, US stocks opened higher due to the fact of solid earnings and a decline in the rate of the dollar after the comments from Mario Draghi who is the president of the European Central Bank. Biogen Inc gained about 1.88 percent after the drug maker reported about the revenue in the fourth-quarter which beat the estimates of Wall Street on higher sales of its recently launched drug Spinraza. The shares of Caterpillar Inc have advanced by 0.16 percent after the largest heavy-duty equipment maker of the world announced the forecasts in profit for a seventh quarter. The demand from Buoyant global and a recovery in commodities markets drove a 35 percent increase in overall sales of its construction and mining equipment. Andre Bakho who is the managing director at New Vines Capital LLC in Bernardsville, NJ mentioned that it is actually more optimistic from investors with respect to the economy and to the earnings at the same time. He also added that the optimism that is present, the people do not want to miss it.

Vigorous quarterly earnings reports and economic data have helped in the rising of the major Wall Street indexes to a very strong and sturdy start this year with each of the indexes on track for a fourth week of gains. As per the data of Thomson Reuters through Wednesday morning, the earnings growth for the benchmark S & P 500 is expected at about 12.4 percent. Out of the 88 companies in the index that have posted the results, 78.4 percent of the total have exceeded the forecasted expectations, while 72 percent had done so at par with average in the past four quarters.

The Dow Jones Industrial Average had risen to 95.65 points or 0.36 percent to 26,347.77, the Nasdaq Composite gained about 27.60 points or 0.37 percent to 7,442.66 and the S & P 500 added about 5.93 point or 0.21 percent, to 2,843.47. The European Central Bank kept its policy which is a tremendously easy one simply unchanged but weakness in the US dollar increased with a rapid pace as Draghi warned the rise in the value of the euro was a source of uncertainty and stated that the bank might have to review the strategy if the United States comments on a weak dollar rate leading to a change in monetary conditions.

January 16, 2022 - 18:44
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