The S&P 500 rebounds from 5-month lows


US indices closed with collective gains in Tuesday's session, supported by a decline in bond yields, in addition to positive financial results and strong expectations for corporate profits.

118 companies included in the S&P 500 index announced their profits. 81% of these companies’ results exceeded expectations.

After the closing bell, Microsoft announced net income rose 27% to $22.29 billion, and earnings per share reached $2.99 versus expectations of $2.65 per share.
Alphabet also announced that it achieved profits and revenues higher than expectations during the third quarter of this year, after earnings per share reached about $1.55, compared to expectations of $1.45 per share.

Performance of major US indices:

The Dow Jones Index rose by about 0.6%, equivalent to about 200 points, after 4 consecutive sessions of losses.
The Nasdaq Composite Index also rose by about 0.9%, recording the second daily gain in a row.
The S&P 500 index rebounded from its lowest levels in about 5 months after rising by 0.7%. It was also able to close above the 200-day moving average after closing below it for two consecutive sessions.

Coca-Cola shares

Coca-Cola shares rose by 2.9% in Tuesday’s session, recording its largest daily gain in nearly a full year, as the company added about $7 billion to its market value in one day.

These gains came after its financial results exceeded Wall Street expectations, and the beverage giant also raised its expectations for the full year despite the rise in prices.
Earnings per share were 74 cents, revised versus expectations of 69 cents, while revenues were $11.91 billion, adjusted versus expectations of $11.44 billion.

General Motors shares

General Motors shares fell by 2.2% in Tuesday’s session, closing at their lowest levels in more than 3 years, despite the automaker announcing strong business results for the third quarter.

These losses came after the United Auto Workers Union announced the expansion of its strike at the company's facilities, which said that the recent labor movements had cost it $800 million.

The company announced before the session that its revenues rose by 5.4% to $44.1 billion in the third quarter, compared to expectations of $43.6 billion.