The markets surged higher today on strong earnings from major banks, healthcare companies, and positive news out of the tech space. The Dow 30 was higher by 547, the S&P 500 closed higher by 59, and the Nasdaq 100 closed higher on the day by 214.
Earnings will continue to shape the week as US Bank (NYSE: USB), Kinder Morgan (NYSE: KMI), American Express (NYSE: AXP), and Paypal (NASDAQ: PYPL), and many other names are due to report.
Sector News
Tech stocks were the strongest sector today as investors headed back into the oversold growth names like Adobe (NASDAQ: ADBE). The technology sector ETF (NYSE: XLK) added over 2% on the day.
Healthcare stocks were also strong today thanks to earnings from names like United Healthcare (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ), which reported strong earnings. The Healthcare ETF (NYSE: XLV) recovered all of last Thursday's declines, adding 2% on the day.
Stock News
Adobe (NASDAQ: ADBE) shares erased yesterday's losses as the company announced a growth plan at their analyst conference that suggested 2019 revenue will grow 20% and digital subscriptions will grow by 25%. Analysts now believe Q4 earnings will come in at $1.89 per share on revenue of $2.43 billion.
Morgan Stanley (NYSE: MS) shares were higher today as the company reported earnings that were better than expected along with revenues. Revenues came in higher by 15% year over year. Bond trading revenue also came in well above estimates. The CEO said they performed well across all areas of their business.
Goldman Sachs (NYSE: GS) shares traded off their lows today as the company reported earnings that comfortably beat Wall Street's expectations. Revenue came in above expectations as well. The company also noted the uptick in bond trading as one of the factors for revenue increase.
United Health Care (NYSE: UNH) shares moved back to highs today as the company reported earnings and revenue that were both better than expected. Growth in the medical services division as well as their core insurance offering were cited as the reasons for the beat. They also raised their outlook for the full year.