US STOCKS closed higher on Wednesday, as the steady flow of strong company earnings continued amid an improving economic outlook.
“The market keeps on rolling higher,” Spartan Capital chief market economist Peter Cardillo told AFP.
“It’s about earnings,” he said, pointing to good news from auto maker Ford and fast food company Chipotle. “The earnings season is favouring stocks at this time and investors like what they are hearing in term of guidance.”
The Dow Jones Industrial Average closed up 0.4 per cent at 38,677.36, while the broad-based S&P 500 rose 0.8 per cent to end the day just shy of 5,000 at 4,995.06.
The tech-rich Nasdaq Composite Index was the best of the bunch, rising by 1.0 per cent to 15,756.64.
Among individual stocks, under-fire regional bank New York Community Bank reversed course despite a debt downgrade from US ratings agency Moody’s to finish the day up close to seven per cent.
Chipotle closed up more than seven per cent after topping revenue estimates in the fourth quarter, while Ford’s shares finished more than six per cent higher after reporting strong earnings.
And Disney’s earnings result – posted after markets closed on Wednesday – also beat expectations, sending its share price surging in after-hours trading. AFP
