New York
CNN Business
—
So much for Shocktober. Wall Street’s often terrifying month for stocks has suddenly turned Rocktober.
The Dow rose nearly 600 points, or 2%, shortly after the open on Tuesday before giving back some of its gains. Still, it was up nearly 200 points, or 0.7%, in afternoon trading.
Strong earnings from blue chip companies improved the market mood. Goldman Sachs (GS), Dow member Johnson & Johnson (JNJ) and Lockheed Martin (LMT) reported earnings that beat Wall Street expectations.
The Nasdaq and the S&P 500 rose 0.2% and 0.6% respectively.
The Dow was also buoyed by news that activist investment firm Starboard Value (CRM)-Inc..pdf” target=”_blank”>has acquired a stake in software giant (and Dow component) Salesforce (CRM), hoping to push the company to make changes that can increase profits. Shares of Salesforce (CRM) were up 5% in midday trading.
Market gains follow a big surge on Monday, thanks to healthy gains as well as improved confidence in the UK following moves by Prime Minister Liz Truss’s government to roll back controversial tax cuts.
The Dow, S&P 500, and Nasdaq are now all higher for the month, following big drops in August and September. Stocks are still lower for the year as investors worry about inflation, big rate hikes from the Federal Reserve and the possibility of a recession in 2023.
