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S&P 500, Dow up on earnings increase, Nasdaq off session low

A specialist trader works inside a floor stand on the New York Stock Exchange (NYSE) in New York City, USA, on January 18, 2022. REUTERS / Brendan McDermid

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  • UnitedHealth is rising as Q4 profits beat estimates
  • BofA, Morgan Stanley concludes bank earnings with a positive tone
  • P&G rises after raising the outlook, beating the turnaround estimates for Q2
  • Nasdaq briefly falls above 10% from record highs
  • Indices rise: Dow 0.27%, S&P 0.25%, Nasdaq 0.16%

Jan 19 (Reuters) - The Wall Street Main Index rose on Wednesday after positive results from a number of companies partially offset a shaky start to the fourth-quarter reporting season, with the Nasdaq jumping from its low session.

The technology-heavy Nasdaq (.IXIC) briefly fell more than 10% from its record high, closing on November 19, and also remained below its 200-day moving average on an intraday basis, an important level of technical support. A correction is confirmed when an index closes 10% or more below its record closing level.

Apple Inc (AAPL.O) and Cisco (CSCO.O) weighed the most on the S&P 500 technology sector (.SPLRCT), while Nvidia Corp (NVDA.O) led declines among semiconductors.

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"We're approaching a 10% drop on Nasdaq ... and much of the tailwind is turning to interest rate sensitive sectors," said Joshua Chastant, senior investment analyst at GuideStone Capital Management.

Upbeat quarterly reports from companies including UnitedHealth Group Inc (UNH.N), Procter & Gamble Co (PG.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) offset the gloomy mood on technology in the early afternoon .

UnitedHealth rose 1.8% after the health insurance company beat the market estimates for quarterly profits on strong demand in its health insurance business. Read more

Procter & Gamble rose 4.3% as it raised its annual sales forecast, taking advantage of the resurgent demand for cleaning products due to an increase in COVID-19 infections. Read more

Bank of America added 1.2% by reporting a jump in fourth-quarter profits, while Morgan Stanley rose 2.6% after posting quarterly earnings above market expectations. Both banks ended results from large lenders positively. Read more

Most other major banks, including JPMorgan Chase & Co (JPM.N), Citigroup (CN) and Goldman Sachs Group Inc (GS.N) reported disappointing results, overthrowing the S&P 500 financial sector (.SPSY) and the banks' sub-sector (.SPXBK). )) from record high levels.

"JPMorgan, Goldman Sachs set the bar very low for Morgan Stanley and Bank of America. While the reports were not great, they were better than the lower expectations were," said Dennis Dick, proprietary dealer at Bright Trading LLC in Las Vegas.

Earnings from S&P 500 companies are expected to grow 23.1% year-over-year in the fourth quarter, according to IBES estimates from Refinitiv.

Investors are now waiting for next week's Federal Reserve policy meeting for more signals about the central bank's plan to control inflation. Data last week showed that US consumer prices rose sharply in December, adding to the largest annual rise in inflation in nearly four decades.

12:08 ET the Dow Jones Industrial Average (.DJI) was up 93.92 points or 0.27% to 35,462.39, the S&P 500 (.SPX) was up 11.43 points or 0.25% to 4,588.54 compound Nasdaq . (.IXIC) rose 22.85 points or 0.16% to 14,529.74.

United Airlines fell 1.7% ahead of their fourth-quarter results following market closures.

Falling issues exceeded the number of advances for a 1.06-to-1 ratio on the NYSE and for a 1.46-to-1 ratio on the Nasdaq.

The S&P index recorded 11 new highs in 52 weeks and six new lows, while the Nasdaq listed 18 new highs and 522 new lows.

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Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Edited by Bernard Orr and Maju Samuel

Our standards: Thomson Reuters Trust Principles.

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