(For a live blog on the U.S. stock market, click LIVE/ or type
LIVE/ in a news window.)
* JPMorgan touches record high on earnings beat
* UnitedHealth, Johnson & Johnson shares jump after results
* Brexit hopes boost sentiment
* Indexes up: Dow 0.89%, S&P 1.00%, Nasdaq 1.24%
(Updates to market close)
By Stephen Culp
NEW YORK, Oct 15 (Reuters) - Wall Street advanced on Tuesday
as third-quarter reporting season hit with a spate of upbeat
earnings reports that brought buyers back to the equities
market.
All three major U.S. stock averages gained ground in a
broad-based rally, with the S&P 500 and the Nasdaq hitting their
highest closing level in more than three weeks.
"Positive earnings are flowing through equity markets today,
suggesting that things weren't as bad as investors thought,"
said Charlie Ripley, senior market strategist for Allianz
Investment Management in Minneapolis.
"We've been in a headline-driven market over the last few
months," Ripley added. "But we've had progress lately, which has
allowed investors switch their focus to more fundamental things
like earnings and upcoming economic data."
Adding to positive geopolitical developments, investors
welcomed news that Britain and the European Union could reach a
deal in time for a leaders' summit this week.
Major financial firms JPMorgan Chase & Co, Citigroup
Inc, Goldman Sachs Group Inc and Wells Fargo & Co
all posted results, as did healthcare giants Johnson &
Johnson and UnitedHealth Group Inc.
Among the big banks, JPMorgan Chase stock hit a record high
after it handily beat estimates on bond trading and underwriting
strength. Its shares were last up 3.0%.
Citigroup rose 1.4% following its profit beat.
Wells Fargo results were less upbeat, as its profit slid 26%
due to sinking mortgage income and legal costs. Goldman Sachs'
profit miss was attributed to weak underwriting. Still, Wells
Fargo rose 1.7%, while Goldman edged up 0.3%.
Prescription drug sales helped drive Johnson & Johnson's
upside surprise, while UnitedHealth raised its 2019 guidance on
pharmacy benefit growth. Their shares closed up 1.6% and 8.2%,
respectively.
Analysts currently expect S&P 500 third-quarter earnings to
have contracted by 3% from last year, down from the 12.1% growth
seen a year ago, according to Refinitiv data.
Of the 34 S&P 500 companies that have reported so far, 88.2%
have come in above consensus estimates.
The Dow Jones Industrial Average rose 237.44 points,
or 0.89%, to 27,024.8, the S&P 500 gained 29.53 points,
or 1.00%, to 2,995.68 and the Nasdaq Composite added
100.06 points, or 1.24%, to 8,148.71.
Among the 11 major sectors in the S&P 500, nine ended the
session in positive territory, with healthcare,
communications services and financials
enjoying the largest percentage gains.
Blackrock Inc, the world's largest asset manager,
beat analyst estimates on strong inflows into its fixed income
and cash management business, sending its stock up 2.4%.
In other news, shares of Roku Inc surged 11.5%
after the announcing Apple Inc's TV app was available
on its platform and Apple TV+ would be available after it was
launched.
Bank of America, expected to post results on
Wednesday, rose 2.0% after a Bloomberg report that Warren
Buffett' Berkshire Hathaway was seeking permission from the
Federal Reserve to boost his stake in the bank above 10%.
Advancing issues outnumbered declining ones on the NYSE by a
1.88-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored advancers.
The S&P 500 posted 17 new 52-week highs and no new lows; the
Nasdaq Composite recorded 44 new highs and 68 new lows.
Volume on U.S. exchanges was 6.27 billion shares, compared
with the 6.82 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by Cynthia Osterman)