After dropping 130 points mid-morning, the Dow zoomed up some 600 points by 1 pm and then began a steady descent for the rest of the day to close up 61 points.  The other indexes pretty much followed suit. Microsoft and Visa triggered the rally with strong Q1 reports before the fears of Fed actions with interest rates once again took over and a poor report from Google finishing the job.  Q1 continues to go very well with one-third of S&P companies having now reported and 80% beating expectations.  Volume was a tad above the 4-week average at 12.1 billion. 

Wed April 27, 2022  4:52 PM

S&P 500 ends higher, supported by Microsoft

By Bansari Mayur Kamdar and Noel Randewich

DJ: 33,240.18  -809.28        NAS: 12,490.74  -514.11        S&P: 4,175.20  -120.92    4/26

DJ: 33,301.93  +61.75         NAS: 12,488.93  -1.81            S&P: 4,183.96  +8.76       4/27

April 27 (Reuters) - The S&P 500 ended higher on Wednesday following a steep drop the day before, with strong revenue forecasts from Microsoft and Visa helping to alleviate worries about slowing global economic growth and rising interest rates.  Microsoft Corp (MSFT.O) rallied after the software heavyweight late on Tuesday gave a strong revenue forecast, while payments network Visa Inc  (V.N)  jumped after it predicted revenue above pre-pandemic levels. read more  Tuesday's gains in the S&P 500 and Dow Jones Industrial Average followed a steep selloff the day before that saw the Nasdaq drop to its lowest close since December 2020 as investors worried that the U.S. Federal Reserve might raise interest rates more than expected in its fight against inflation.

The S&P 500 communication services index (.SPLRCL) fell 2.6%, with Google-parent Alphabet  (GOOGL.O) dropping 3.7% after it reported that quarterly YouTube ad sales slowed and its revenue missed expectations. read more  "What we've really been seeing is that misses are being punished a little more severely, but that beats are also being rewarded," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management in Seattle. "With interest rates where they are and the 10-year Treasury testing 2.8%, I think there is a big question about growth and valuations." 

 

In extended trade, Facebook-owner Meta Platforms Inc (FB.O) rose 9% following its quarterly report. During the trading session it had declined 3.3%. read more  Planemaker Boeing Co (BA.N) tumbled 7.5% after it said it was halting production of 777X jets through 2023 due to certification problems, as well as weak demand for the wide-body jet. read more

Nearly a third of the companies on the S&P 500 have reported results this week. Overall, earnings have been better than expected, with nearly 80% of the 176 companies in the S&P 500 that have reported so far beating Wall Street expectations. Typically, only 66% of companies beat estimates.

The Dow Jones Industrial Average (.DJI) rose 0.19% to end at 33,301.93 points, while the S&P 500 (.SPX) gained 0.21% to 4,183.92.  The Nasdaq Composite (.IXIC) dropped 0.01% to 12,488.93. 

 

Tesla Inc (TSLA.O) recovered 0.6% following a 12% slump on Tuesday related to concerns that Chief Executive Elon Musk may have to sell shares to fund his $44 billion buyout of Twitter Inc  (TWTR.N).  read more  Toymaker Mattel Inc (MAT.O) surged almost 11% after a source told Reuters it was exploring a sale. read more  Audio streaming platform Spotify Technology SA's U.S.-listed shares (SPOT.N) tumbled more than 12% following a downbeat current-quarter revenue forecast. read more

Volume on U.S. exchanges was 12.1 billion shares, compared with a 11.7 billion average over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored decliners.  The S&P 500 posted 3 new 52-week highs and 64 new lows; the Nasdaq Composite recorded 25 new highs and 724 new lows.