US stocks jump on Apple earnings, talk of ECB stimulus
US stocks barreled higher Tuesday, propelled by talk of broader monetary stimulus in Europe and a strong Apple earnings report that helped lift the Nasdaq by more than 100 points. This Oct. 8, 2014, photo shows a man walking to work on Wall Street, near the New York Stock Exchange, in New York. AP
NEW YORK–US stocks barreled higher Tuesday, propelled by talk of broader monetary stimulus in Europe and a strong Apple earnings report that helped lift the Nasdaq by more than 100 points.
The Dow Jones Industrial Average gained 215.14 points (1.31 percent) to 16,614.81.
The broad-based S&P 500 rose 37.27 (1.96 percent) to 1,941.28, while the tech-rich Nasdaq Composite Index jumped 103.40 (2.40 percent) to 4,419.48.
Apple, the biggest US company by market capitalization, rose 2.7 percent as fourth-quarter profits jumped 13 percent to $8.5 billion on strong iPhone sales.
US stocks also gained momentum from speculation that the European Central Bank could widen its bond-buying initiatives to corporate bonds. The chatter lifted France’s CAC 40 and other European bourses by more than 2.0 percent.
The current norm in markets is for big swings in the indices, said Michael James of Wedbush Securities.
“The volatility we’ve had is only going to perpetuate more volatility,” he said.
Besides Apple, James cited strong earnings from Texas Instruments as a catalyst for tech share gains.
The semiconductor manufacturer shot up 5.3 percent after third-quarter earnings rose 31.3 percent to $826 million, besting expectations.
Coca-Cola shares plunged 6.0 percent as net income for the third quarter dropped 13.6 percent to $2.12 billion. Results were weighted down by slower economic growth and volatile currencies.
McDonald’s fell 0.6 percent on earnings that tumbled 30 percent to $1.07 billion in part due to a food-safety scandal in China and amid intense competition in the United States.
Chipotle Mexican Grill dropped 7.0 percent despite notching a 57 percent gain in third-quarter net income to $130.8 million. Analysts said the restaurant chain’s earnings growth is not sustainable.
Motorcycle manufacturer Harley-Davidson soared 7.3 percent on better sales in both the US and overseas. Third quarter earnings hit 69 cents per share, besting analyst expectations by nine cents.
Other companies to report earnings included Kimberly-Clark (+3.0 percent), Lockheed Martin (-1.7 percent), Travelers (+1.1 percent), United Technologies (+0.5 percent), Verizon Communications (+0.4 percent) and Whirlpool (+1.3 percent).
Bond prices fell. The yield on the 10-year US Treasury rose to 2.21 percent from 2.18 percent Monday, while the 30-year advanced to 2.98 percent from 2.96 percent. Bond prices and yields move inversely.
