July 19 (Reuters) – The New York Stock Exchange opened higher on Tuesday as investors focus on another earnings season and the impact of the rising dollar on U.S. businesses.
In early trading, the Dow Jones index gained 223.94 points, or 0.72%, to 31,296.55 points and the broader Standard & Poor’s 500 rose 0.95% to 3,867.4 points.
The Nasdaq Composite took 0.88%, or 99.468 points, to 11,459.516.
With quarterly earnings season officially kicking off, analysts now expect quarterly earnings growth for S&P 500 companies of 6% year on year, according to Refinitiv data.
Johnson & Johnson climbed 0.35% after posting a quarterly profit above expectations but lowered its outlook for annual results due to the strong dollar.
The American computer giant IBM, meanwhile, lost 7.15%, its better-than-expected quarterly turnover not being enough to overshadow concerns about the potential impact of the higher price of the greenback.
“Dollar appreciation is becoming an issue but it won’t be seen as such this season because there isn’t a drop in demand, in which case we would be more worried,” said Art Hogan, chief strategy officer at B. .Riley.
Boeing gains 2.76% after the announcement of an order for aircraft by AerCap, which specializes in leasing, and by 777 Partners.
Apple is virtually unchanged (+0.12%) after losing 2% the previous day in response to information from Bloomberg that the American giant plans to cut hiring and spending in certain divisions next year due to a possible economic downturn.
(Written by Olivier Cherfan in Gdansk, edited by)