* Netflix up 18 pct on strong subscriber growth
* UnitedHealth soars on upbeat forecast
* J&J slips on Pfizer's plans to sell generic drug
* Indexes up: Dow 0.58 pct, S&P 0.69 pct, Nasdaq 0.93 pct
(Updates to open)
By Yashaswini Swamynathan
Oct 18 Wall Street rallied broadly on Tuesday,
as a slew of better-than-expected quarterly reports, including
those from Netflix and UnitedHealth, buoyed investor sentiment.
All of the 11 major S&P 500 sectors were higher, led by an
1.13 percent rise in the healthcare index.
UnitedHealth rose 6 percent after the health insurer
said it expect the strong growth seen in 2016 to continue into
2017. Other health insurers also gained on the news.
Netflix was the top boost and biggest gainer on the
S&P 500, rising 17.5 percent to $117.41 after the video
streaming website added many more subscribers in the third
quarter than expected.
Goldman Sachs rose 2.2 percent, lifting shares of
other banks, after the company's results blew past Wall Street
estimates, mirroring results at its Wall Street peers.
Of the 37 S&P 500 companies that have reported results until
Monday, 78 percent have reported earnings that have topped
analysts average estimate, according to Thomson Reuters I/B/E/S.
These market-beating reports have led analysts to narrow
their estimate for the drop in third-quarter profit at S&P 500
companies to 0.1 percent from their earlier view of 0.7 percent.
"The markets are expecting an inflection point as we move
from the third to the fourth quarter, and so what they will be
parsing in management guidance is for a view that earnings turn
positive in the fourth quarter," said David Donabedian, chief
investment officer of Atlantic Trust Private Wealth Management.
A report from the Labor Department showed consumer prices
rose 0.3 percent in September, after rising 0.2 percent the
previous month, due to strong gains in gasoline and rents.
At 9:39 a.m. ET the Dow Jones Industrial Average was
up 105.09 points, or 0.58 percent, at 18,191.49.
The S&P 500 was up 14.72 points, or 0.69 percent, at
2,141.22 and the Nasdaq Composite was up 48.11 points,
or 0.93 percent, at 5,247.93.
Among the laggards was IBM, falling 3.13 percent
after reporting its 18th straight quarter of revenue decline.
Johnson & Johnson was down 0.5 percent, while Pfizer
gained 0.8 percent on after it announced plans to ship a
cheaper biosimilar to Remicade, JNJ's top selling product. The
news overshadowed J&J's slight earnings beat.
Intel, scheduled to report after markets close,
rose 1.6 percent on a Barclays upgrade. Yahoo, also due
to report in the evening, was up 0.7 percent.
Advancing issues outnumbered decliners on the NYSE by 2,406
to 310. On the Nasdaq, 1,857 issues rose and 401 fell.
The S&P 500 index showed one new 52-week highs and no new
lows, while the Nasdaq recorded 21 new highs and 12 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by