It is good to have the Dow.
The stock market continues to rally on Wednesday, but some indices are rallying more than others. S&P 500 futures are up 1.4%, while the Dow Jones Industrial Average futures gained 566 points, or 2.1%, and the Nasdaq Composite gained just 0.5%.
The market has received a boost from Modern’s (MRNA) announcement that it is moving to Phase 3 trials for its Kovid vaccine, and publication of data from Phase 1 trials. J. P. MourganOf
Corey Kasimov called it “another booster shot … and market” for MRNA.
But the Dow has received an additional boost that has helped it grow against other indices. Reason: Goldman Sachs (GS). The investment bank reported a profit of $ 6.26, easily topping estimates for $ 3.78, on revenue of $ 13.3 billion, ahead of forecasts of $ 9.7 billion. Goldman’s stock is 4.5% to $ 223.69.
This provides a major boost for the Dow. The blue-chip benchmark uses price instead of market cap, the weighting of each stock, meaning that some companies have more impact than the market cap they should suggest.
The Dow held back in 2020. It has fallen 6.6%, while the S&P 500 is down just 1%, and the Nasdaq Composite is down 17%. Is it time to play catchup?
Goldman Sachs today is not the only high-value Dow component reporting income. UnitedHealth Group (UNH) posted a profit of $ 7.12 per share on revenue of $ 62.1 billion, beating forecasts for $ 5.18, missing expectations for $ 64.4 billion. Investors appear to be taking a glass-and-half-full perspective on earnings: Unitedlator stock is up 0.4% to $ 309.90.
Nor is Goldman the only bank on the move on Wednesday morning. Wells Fargo (WFC) has gained 2.8% since its upgrade from outperform to outperform at Evercore ISI, while it dropped 4.6% after disappointing earnings.
And even a downgrade cannot put American Express (AXP) down for a day like today. Despite underweight cuts from neutrals at JPMorgan, the Dow’s share, the stock, has risen 2% to $ 96.73.
Halliburton (HAL) has gained 4% to $ 12.98 after upgrading from Market Perform to Cowper to Outperform.
Write Ben livisno ben at [email protected]