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It is good to be the Dow.
The stock market continues to rise on Wednesday, but some indices are rising more than others. S&P 500 futures are up 1.4%, while Dow Jones Industrial Average futures are up 566 points, or 2.1%, and Nasdaq Composite is up just 0.5%.
The market received a boost from Moderna’s (MRNA) announcement that it is proceeding with a Phase 3 trial for its Covid vaccine, and the publication of data from a Phase 1 trial. JPMorgan‘s
Cory Kasimov called it “another booster shot for MRNA … and the market.”
But the Dow received an additional boost that helped it outperform the other indices. The reason: Goldman Sachs (GS). The investment bank reported a profit of $ 6.26 per share, easily beating estimates of $ 3.78, on revenue of $ 13.3 billion, before forecasts of $ 9.7 billion. Goldman’s shares rose 4.5% to $ 223.69.
That provided a huge boost for the Dow. The front-line benchmark uses price, rather than market capitalization, the weight of each stock, which means that some companies have more impact than their market capitalization suggests they should.
That delayed the Dow in 2020. It’s down 6.6%, while the S&P 500 is down just 1% and the Nasdaq Composite is up 17%. Is it time to catch up?
Goldman Sachs is not the only high-priced component of Dow reporting earnings today. UnitedHealth Group (UNH) reported a profit of $ 7.12 per share, beating expectations of $ 5.18, on revenue of $ 62.1 billion, with no expectations of $ 64.4 billion. Investors appear to be taking a half-full glass outlook on earnings: UnitedHealth shares rose 0.4% to $ 309.90.
Goldman is also not the only bank on the move Wednesday morning. Wells Fargo (WFC) has risen 2.8% after being upgraded to Outperform from In Line on Evercore ISI a day after dropping 4.6% following disappointing gains.
And even a downgrade can’t keep American Express (AXP) on a day like today. Its share, which is part of the Dow, has gained 2% to $ 96.73, despite being downgraded to Neutral at JPMorgan.
Halliburton (HAL) has gained 4% to $ 12.98 after being upgraded to outperform Market Perform in Cowen.
Write to Ben Levisohn at [email protected]
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