[New York Stock Market] Rising Trend as Earnings Season Begins... Nasdaq Up 2.03%

[Image source=EPA Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market closed higher on the 13th (local time) as the corporate first-quarter earnings season began.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,564.59, up 344.23 points (1.01%) from the previous session.

The S&P 500, which focuses on large-cap stocks, rose 49.14 points (1.12%) to 4,446.59, and the tech-heavy Nasdaq index closed at 13,643.59, up 272.02 points (2.03%). The small-cap Russell 2000 index (2,025.10) also rose 38.17 points (1.92%), reclaiming the 2,000-point level.

Investors paid close attention to the first-quarter earnings announcements and the Producer Price Index (PPI) data, which started being released on this day.

Among banks, JPMorgan, the largest U.S. bank and the first to report earnings, closed down 3.22% following news that it suffered losses due to sanctions against Russia after the Ukraine invasion. JPMorgan Chase’s first-quarter profits fell by 42%.

On the other hand, Delta Air Lines closed up 6.21% despite weak first-quarter results, buoyed by expectations of a surge in airline bookings in the second quarter. Other airline stocks such as American Airlines (10.62%) and Southwest Airlines (7.54%) also jumped. Travel company Expedia rose 4.88%, and hotel operator Marriott closed up 7.53%.

Semiconductor stocks also rebounded. Nvidia rose 3.25%, Qualcomm 3.24%, and AMD 2.78%. Chris Senek, Chief Investment Strategist at Wolfe Research, said, "I do not expect stock prices to rise based on first-quarter earnings trends as management guidance could be negative," adding, "High inflation, tightening by the Federal Reserve (Fed), and recession risks will be key drivers of overall market returns and sector rotation."

U.S. producer prices remained in double digits, fueling inflation concerns. According to the U.S. Department of Labor, the Producer Price Index (PPI) for March rose more than 11.2% compared to the same period last year, exceeding the previous month’s 10.3% increase. The day before, the U.S. Consumer Price Index (CPI) for March hit 8.5%, marking the highest level in 40 years.

These inflation indicators have raised voices suggesting that the Fed’s tightening measures could accelerate. U.S. Treasury Secretary Janet Yellen stated that the Fed could achieve a soft landing for the economy. Fed Governor Christopher Waller supported a big rate hike of 0.5 percentage points in a single move during his speech.

On this day, the yield on the U.S. 10-year Treasury note fell to 2.7% in the bond market.

International oil prices rose as talks between Russia and Ukraine reached a deadlock. On the New York Mercantile Exchange, May West Texas Intermediate (WTI) crude oil prices closed at $104.25 per barrel, up $3.65 (3.6%) from the previous session.