(Sharecast News) - Stocks traded higher early on Wednesday as solid bank earnings outweighed concerns about the re-escalation of Donald Trump's trade war with China.
As of 1515 BST, the Dow Jones Industrial Average was up 0.75% at 46,618.11, while the S&P 500 advanced 1.09% to 6,716.70 and the Nasdaq Composite came out of the gate 1.33% firmer at 22,821.13.
The Dow opened 347.65 points higher on Wednesday, extending solid gains recorded in the previous session on the back of a slew of strong earnings from some banking heavyweights, as the focus was firmly fixed on trade tensions and comments from the head of the Federal Reserve.
Trade tensions between Washington and Beijing were still drawing investor attention at the open on Wednesday after intensifying late on Tuesday on the back of Donald Trump's threats to impose a cooking oil embargo on China in response to its continued refusal to purchase US soybeans.
The move followed fresh sanctions from Beijing on five US subsidiaries of South Korean shipbuilder Hanwha Ocean, announced Monday night, and came days after Trump warned of a potential 100% tariff on Chinese imports - a threat that was issued in retaliation for China's decision to tighten export controls on rare earth minerals.
US trade representative Jamieson Greer said the proposed tariffs could take effect as early as 1 November, depending on China's next move. "A lot depends on what the Chinese do," Greer said. "They are the ones who have chosen to make this major escalation."
In the corporate space, banking giant Morgan Stanley posted third-quarter earnings that comfortably beat Wall Street expectations on Wednesday, driven by robust trading and investment banking activity, reporting a 45% year-on-year jump in profits to $4.61bn, or $2.80 per share, and an 18% increasee in revenues to a record $18.22bn, while Bank of America posted above-forecast third-quarter numbers as it became the latest Wall Street lender to benefit from a rebound in deal-making, with revenues coming in 11% higher year-on-year at $28.1bn, boosted by higher net interest income, investment banking and asset management fees and trading revenues.
Still to come, United Airlines will report its latest quarterly figures after the close.
On the macro front, manufacturing activity across New York State unexpectedly rose in October, marking its third increase over the past four months, according to a monthly report on sector conditions conducted by the Federal Reserve Bank of New York. The Empire State Manufacturing Survey's headline general business conditions index climbed 19 points to 10.7, up from -8.7 in September and comfortably ahead of the -1.0 reading pencilled in by economists.
Elsewhere, US mortgage applications fell for the third straight week over the seven days to 10 October, according to the Mortgage Bankers Association on Wednesday. The MBA's overall market index fell 1.8% last week, following a 4.7% drop the week before and a 12.7% plunge previously. Applications to refinance a mortgage fell by 1.0% over the week, while those for purchases dropped by 2.7%.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
International Business Machines Corporation (CDI) (IBM) $283.30 2.59%
JP Morgan Chase & Co. (JPM) $308.98 2.29%
Nike Inc. (NKE) $69.15 2.24%
Dow Chemical Co. (DOW) $22.30 1.71%
Walmart Inc. (WMT) $108.86 1.54%
Cisco Systems Inc. (CSCO) $69.57 1.33%
Johnson & Johnson (JNJ) $193.17 1.22%
McDonald's Corp. (MCD) $308.16 1.18%
Walt Disney Co. (DIS) $112.34 1.05%
3M Co. (MMM) $153.92 0.91%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $271.94 -1.34%
Merck & Co. Inc. (MRK) $84.15 -0.73%
Verizon Communications Inc. (VZ) $40.49 -0.14%
Procter & Gamble Co. (PG) $149.20 0.00%
Intel Corp. (INTC) $35.63 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Walgreens Boots Alliance, Inc. (WBA) $11.98 0.00%
Boeing Co. (BA) $214.79 0.03%
Coca-Cola Co. (KO) $67.55 0.09%
Amgen Inc. (AMGN) $294.48 0.22%
S&P 500 - Risers
CenturyLink Inc. (LUMN) $7.36 7.13%
Morgan Stanley (MS) $165.91 6.81%
Advanced Micro Devices Inc. (AMD) $230.87 5.64%
Fluor Corp. (FLR) $50.88 5.50%
ProLogis (PLD) $120.97 4.78%
Gap Inc. (GAP) $21.43 3.90%
KLA-Tencor Corp. (KLAC) $1,065.25 3.85%
Bank of America Corp. (BAC) $51.99 3.78%
NRG Energy Inc. (NRG) $171.68 3.67%
Lam Research Corp. (LRCX) $143.82 3.57%
S&P 500 - Fallers
Progressive Corp. (PGR) $221.68 -7.79%
PNC Financial Services Group (PNC) $181.94 -4.11%
Abbott Laboratories (ABT) $129.05 -3.17%
Allstate Corp (The) (ALL) $205.07 -2.12%
Centene Corp. (CNC) $35.87 -1.56%
Constellation Brands Inc. Class A (STZ) $139.07 -1.54%
CIGNA Corp. (CI) $298.20 -1.30%
Travelers Company Inc. (TRV) $272.38 -1.18%
Fastenal Co. (FAST) $42.17 -1.08%
Biogen Inc (BIIB) $143.96 -1.04%
Nasdaq 100 - Risers
Lam Research Corp. (LRCX) $143.82 3.98%
KLA-Tencor Corp. (KLAC) $1,065.25 3.85%
Illumina Inc. (ILMN) $94.20 3.52%
Broadcom Inc. (AVGO) $354.43 2.99%
DENTSPLY Sirona Inc. (XRAY) $12.78 2.49%
Asml Holdings N.V. (ASML) $1,007.15 2.44%
Applied Materials Inc. (AMAT) $223.24 2.31%
Baidu Inc. (BIDU) $122.47 2.11%
Starbucks Corp. (SBUX) $82.58 1.76%
Take-Two Interactive Software Inc. (TTWO) $261.95 1.64%
Nasdaq 100 - Fallers
Fastenal Co. (FAST) $42.17 -1.35%
Biogen Inc (BIIB) $143.96 -0.93%
Qvc Group Inc Series A (QVCGA) $14.84 -0.64%
Adobe Systems Inc. (ADBE) $334.08 -0.56%
Netflix Inc. (NFLX) $1,210.18 -0.43%
T-Mobile Us, Inc. (TMUS) $228.51 -0.40%
Vertex Pharmaceuticals Inc. (VRTX) $410.77 -0.35%
Biomarin Pharmaceutical Inc. (BMRN) $52.33 -0.27%
Microchip Technology Inc. (MCHP) $64.43 -0.26%
Check Point Software Technologies Ltd. (CHKP) $193.80 -0.14%
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