Stocks rise again as corporate America hits earnings

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CNN Business

So much for the Shocktober. The often frightening bear for Wall Street stocks has suddenly turned into Rocktober.

The Dow rose nearly 600 points, or 2%, shortly after the opening bell on Tuesday, before giving up some of its gains. Still, it finished the day up more than 340 points, or 1.1%.

Strong earnings from blue-chip companies boosted the market mood. Goldman Sachs (GS), other Dow components Johnson & Johnson (JNJ) and Lockheed Martin (LMT) reported profits that beat Wall Street’s expectations.

The Nasdaq and S&P 500 rose 0.9 percent and 1.1 percent, respectively.

Dow was also backed by news that it has acquired a stake in activist investment firm Starboard Value (CRM)-Inc..pdf” target=”_blank”>software giant (and Dow component) Salesforce (CRM). forcing the company to make changes that could increase profits. Shares of Salesforce (CRM) gained 4.4%.

The market’s gains came after a big boost on Monday thanks to healthy earnings as well as the improving sentiment for the UK following Prime Minister Liz Truss’s government’s moves to backtrack against controversial tax cuts.

The Dow, S&P 500 and Nasdaq are now higher for the month, after big drops in August and September. Stocks are still low for the year as investors worry about inflation, big rate hikes by the Federal Reserve and the possibility of a recession in 2023.


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