Bargain hunting contributes to a significant rebound on Wall Street

Stock prices soared during Tuesday’s trading day, regaining ground following the sold-out seen in the previous session. All major averages showed strong movements to return to highs, but well below record highs.

The key average fell to its highest level when it reached the closing price, but maintained a strong rise. The Dow rose 549.95 points (1.6%) to 34,511.99, the Nasdaq rose 223.89 points (1.6%) to 14,498.88, and the S & P 500 rose 64.57 points (1.5%) to 4,323.06.

The Wall Street rebound came when traders picked up stocks at relatively low levels after the plunge seen on Monday lowered the key average to the lowest level in almost a month.

Positive reactions to the latest earnings news also contributed to the power of Wall Street, with technology giant IBM Corp. (IBM) rising significantly after reporting better results than expected in the second quarter.

HCA Healthcare (HCA) also surged after hospital companies reported second-quarter results, surpassing analysts’ estimates on both the top and bottom lines.

Halliburton (HAL) and JB Hunt Transport Service (JBHT) also recorded strong growth after reporting higher-than-expected revenue in the second quarter.

In US economic news, the Commerce Department released a report in June showing a significant increase in new home construction.

According to the Department of Commerce, housing rose 2.1% in May to 1,546,000, and then rose 6.3% to 16.43 million annually in June.

Economists expected housing to grow 1.1 percent from the originally reported 15.72 million last month to a proportion of 1.59 million.

Meanwhile, the report showed that building permits fell 2.9% in May to 16.83 million and then fell 5.1% in June to an annual rate of 1,598,000.

Building permits, an indicator of future housing demand, were expected to increase 1.1% from 16.81 million, which was first reported last month, to 1.7 billion.

Sector news

Airline stocks showed a significant rebound on the day, with the NYSE Arca Airlines index soaring 5.8% after ending the previous session with the lowest closing price in more than five months.

Bargain hunting also contributed significantly to the strength of bank stocks, raising the KBW Bank Index by 3.2%. The index bounced off at a low of almost four months.

Oil services stocks also rose sharply, with the Philadelphia Oil Services Index rising 2.5%.

Oil service stocks are rebounding as crude oil prices delivered in August rose from $ 1 to $ 67.42 per barrel after plunging from $ 5.39 to $ 66.42 on Monday.

Stock prices for computer hardware, housing and brokerage firms also rose significantly that day, reflecting the strength of Wall Street’s broad base.

Other markets

In foreign trade, stocks market During trading on Tuesday, it fell almost across the Asia Pacific region. Japan’s Nikkei 225 Index fell 1%, while China’s Shanghai Composite Index fell 0.1%.

Meanwhile, major European markets have rebounded after a significant drop after the end of the last session. France’s CAC 40 index rose 0.8%, while Germany’s DAX index and UK’s FTSE index rose 0.6% and 0.5%, respectively.

In the bond market, seeing the initial strength, government bonds fell during the session. As a result, yields on benchmark 10-year bonds, which move in the opposite direction of price, rose 2.8 basis points to 1.209%.

Future outlook

A reaction to the latest batch of earnings news could facilitate trading on Wednesday during a quiet US economic day.

Netflix (NFLX), United Airlines (UAL) Intuitive Surgical (ISRG) and Chipotle Mexican Grill (CMG) are one of the companies that have announced quarterly results after today’s closing.

Coca-Cola (KO), Johnson & Johnson (JNJ), Harley-Davidson (HOG) and Verizon (VZ) will also report their quarterly results before the opening of trading on Wednesday.

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Bargain hunting contributes to a significant rebound on Wall Street

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