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Wall Street gain on strong earnings, extending rebound

Wall Street gain on strong earnings, extending rebound
July 22
04:56 2021

Major indices climbed about 1.5 percent on Tuesday, shrugging off worries about global growth and the Delta variant of the coronavirus that had punished equities on Monday.

AFP

July 21, 2021 / 07:29 PM IST

Wall Street stocks opened higher Wednesday, extending the market’s rebound following a round of mostly strong earnings from Coca-Cola and other large companies.

Major indices climbed about 1.5 percent on Tuesday, shrugging off worries about global growth and the Delta variant of the coronavirus that had punished equities on Monday.

Comments from consumer-facing companies like Coca-Cola and Chipotle about strong demand despite the Delta variant “helped temper some of the slowdown concerns that were reportedly behind Monday’s selling,” said Briefing.com analyst Patrick O’Hare.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.6 percent at 34,729.56.

The broad-based S&P 500 gained 0.5 percent to 4,343.18, while the tech-rich Nasdaq Composite Index climbed 0.2 percent to 14,527.42.

Shares of Coca-Cola jumped 2.4 percent after the company boosted its full-year forecasts following better-than-expected results in the second quarter. Sales were boosted by the restoration of businesses connected to professional sports and other live events.

Chipotle Mexican Grill was another winner, surging nearly eight percent as it reported blowout quarterly results, with Chief Executive Brian Niccol predicting strong earnings “for many years to come.” Revenue jumped nearly 40 percent to $ 1.9 billion.

But Netflix dropped 2.6 percent as the streaming giant’s profits missed expectations and it projected disappointing subscriber additions in the current quarter.

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