US stocks gain on mostly solid earnings

A trader works on the floor of the New York Stock Exchange. PHOTO: REUTERS

NEW YORK (AFP) - Wall Street stocks bounced on Tuesday (Feb 8), shrugging off worries over higher interest rates following a batch of mostly solid earnings from DuPont, Harley-Davidson and others.

The yield on the 10-year US Treasury note pushed upwards towards 2 per cent, reflecting expectations that the Federal Reserve will soon hike interest rates.

But analysts cautioned that markets could remain choppy until the Fed policy shift is confirmed and inflation ebbs.

The Dow Jones Industrial Average finished up 1.1 per cent, or more than 370 points, at 35,462.78.

The broad-based S&P 500 gained 0.8 per cent to 4,521.54, while the tech-rich Nasdaq Composite Index climbed 1.3 per cent to 14,194.45.

Among individual companies, Harley-Davidson surged 15.5 per cent after the motorcycle manufacturer reported a surprise profit following a 40 per cent jump in revenues to US$1 billion (S$1.3 billion).

Peloton Interactive soared 25.3 per cent as it scaled back its expansion and announced layoffs as well as a leadership shift amid changes in consumer demand. The home-exercise company reported a quarterly loss of US$439.4 million.

Other companies that rose after results included Amgen, up 7.8 per cent and DuPont, up 6.3 per cent.

Pfizer dropped 2.8 per cent as it reported that annual profits more than doubled to US$22 billion on strong Covid-19 vaccine sales, though analysts expressed disappointment at the company's forecast.

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