US open: Stocks go green as Q3 earnings remain in focus
Wall Street stocks were in the green after the opening bell on Tuesday as Q3 earnings continue to pour in.
As of 1525 BST, the Dow Jones Industrial Average was up 1.68% at 30,693.74, while the S&P 500 advanced 1.75% to 3,742.42 and the Nasdaq Composite came out the gate 1.94% firmer at 10,882.72.
The Dow opened 507.92 points higher on Tuesday, extending gains recorded in the previous session as market participants digested more Q3 earnings reports from major banks.
Tuesday's primary focus will again be on earnings, with US banking giant Goldman Sachs topping expectations with its third-quarter revenue and profits on Tuesday thanks to a solid bond trading performance, while Johnson & Johnson posted better-than-expected third-quarter numbers on Tuesday, bolstered by a strong performance at its pharmaceutical division.
Lockheed Martin also reported better-than-expected Q3 earnings, with net sales of $16.6bn and net earnings of $1.8bn, and Hasbro profits fell short of profit expectations amid high inventories and inflation.
Still to come, Netflix will post earnings after the close of trading, with expectations high that the streaming giant will manage to avoid reporting another quarter of subscriber losses.
Outside of earnings, Eli Lilly said on Tuesday that it has agreed to buy genetic medicine developer Akouos for $487.0m. Under the terms of the deal, Lilly will pay $12.50 per share in cash, plus one contingent value right of up to $3.00 per share.
On the macro front, industrial production increased 0.4% in September and 2.9% in the third quarter, according to the Federal Reserve, with manufacturing output rising 0.4% and mining moving up 0.6%.
Elsewhere, the National Association of Home Builders' housing market index fell for the tenth month in a row in October, dropping to 38 and well and truly missing market forecasts for a print of 43 - half the level it was six months ago and the lowest print seen since August 2012 as rising interest rates, building material bottlenecks and elevated home prices continued to weigh on affordability.
Reporting by Iain Gilbert at Sharecast.com