Feb. 9 (UPI) — U.S. markets rose for a second consecutive day Wednesday behind another batch of positive corporate earnings and shares of Disney surged after the bell as it beat earnings expectations.
The Dow Jones Industrial Average rose 305.28 points, or 0.85%, while the S&P 500 gained 1.45% and the Nasdaq Composite closed the day up 2.08%.
Disney stock rose 3.33% in regular trading but shot up more than 8% after the bell as the company reported $21.82 billion in revenue in its fiscal first quarter, exceeding analysts’ projections of $20.91 billion.
The company also reported 129.8 million subscribers to its Disney+ streaming service, outpacing analysts’ expectations of 125.75, while its parks experiences and consumer products division saw revenue of $7.2 billion, double the $3.6 billion it reported in the first quarter last fiscal year.
Shares of Chipotle Mexican Grill rose 10.05% as the fast-service food chain posted earnings that beat expectations despite concern of food price inflation and labor costs, and Lyft stock gained 6.8% despite forecasting first-quarter revenue that fell short of expectations.
Tech stocks also helped to drive markets higher as shares of Facebook parent, Meta, gained 5.37% after freefalling in the wake of disappointing earnings last week.
E-commerce platforms Shopify and Etsy rose about 5% and 3% respectively, while work-from-home names DocuSign and Zoom each rose about 5%.
Travel stocks were also on the rise with Norwegian Cruise Line gaining 4.22% as Delta Air Lines increased 2.96%.
Markets have rallied back from losses to start the week on Monday but Victoria Fernandez, chief market strategist at Crossmark Global Investments, told Yahoo Finance that multiple factors could limit the rise.
“You have a market that’s trying to digest so many elements: You’ve got a decently strong economy, but you’ve got these inflation concerns … you’ve got valuations that have been somewhat stretched, you have questions as to what monetary policy is going to look like over the course of 2022,” said Fernandez.
“I would be careful going all in thinking this is a rebound that won’t come back some,” she said.
Investors will receive some clarity on one of the issues Thursday as the January Consumer Price Index is set to release and is expected to show a fresh 39-year high rate of inflation.