US stock indices rise on positive corporate reports

Today, October 18, after the opening of trading in the United States, the leading stock indices immediately added 1.5% due to the positive reports of a number of large American corporations for the third quarter that were released earlier. The main growth drivers were banking sector quotations, which increased by 1.2–2.0% after the quarterly report leading investment bank Goldman Sachs, surpassed analysts’ forecasts for revenue and profit due to successful trading operations in the past quarter.

Investors also appreciated good quarterly results pharmaceutical corporation Johnson & Johnson, which also turned out to be better than analysts’ forecasts: total revenue increased by 1.9% compared to the third quarter of last year, net profit – by 21.6%, revenue per share – by 22.6%. The company managed to show such results, despite the growing inflationary pressure and the slowdown in economic growth in many countries of the world, caused, among other things, by geopolitical instability.

Exchange analysts believe that good quarterly reports in large companies operating in key sectors of the economy, can ease the tension that has recently reigned among economists. “A lot of skeptical opinions are being expressed now, and the market often goes against established opinions,” informed Reuters senior portfolio analyst at the New York-based investment company Ingalls & Snyder Tim Grisky. — But we will be able to understand whether the markets have reached their bottom only by looking in the rear-view mirror.

Evgeniy Khvostik