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Overnight Markets: Wall Street gains on upbeat earnings reports
by Himanshu Singh on Apr 23, 2014 at 04:28
Wall Street gained on Tuesday as solid earnings reports from Netflix Inc. to Harley-Davidson Inc. topped estimates and health-care shares surged amid a $45.7 billion bid for Allergan Inc.
The Dow Jones industrial average rose 65 points or 0.40%, to end at 16,514. The S&P 500 gained eight points or 0.41%, to 1,880. The Nasdaq Composite added 40 points or 0.97%, to 4,161.
The healthcare sector was the best performer as Allergan Inc (AGN.N) jumped 15.2% a day after activist investor William Ackman teamed up with Canadian drugmaker Valeant Pharmaceuticals International Inc (VRX.TO)(VRX.N) to bid for the company. US-listed Valeant shares surged 7.5%.
Netflix Inc (NFLX.O) rose 7% a day after reporting strong subscriber growth.
A deal between Novartis (NOVN.VX) and GlaxoSmithKline (GSK.L), in which the two traded over $20 billion worth of assets in an effort to cope with healthcare spending cuts and generic competition, also bolstered the healthcare sector. US-listed shares of Novartis (NVS.N) gained 1.3%, while Glaxo (GSK.N) rose 4.1%.
Dow components Travelers Cos Inc (TRV.N) and United Technologies Corp (UTX.N) both beat expectations, and United Tech raised the low end of its full-year profit outlook. Shares of Travelers rose 0.6% while United Tech added 0.8%.
McDonald's Corp (MCD.N) reported earnings that fell alongside a drop in US same-store sales, and its stock slipped 0.4%.
After the close, Gilead Sciences Inc (GILD.O) gained 1.1% after the drugmaker said its new $1,000 hepatitis C pill generated quarterly sales of $2.27 billion, helping the company's quarterly net profit nearly triple.
Facebook Inc (FB.O) shares gained 2.9%, helping to lift the Nasdaq 100 and the S&P 500.
In Asia, shares pared their advance on Wednesday after China’s preliminary manufacturing data signaled persisting weakness in the world’s second-largest economy and Australia’s inflation increased less than expected.
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