Goldman profit beat, easing rate-hike bets drive Wall Street higher

Goldman Sachs profit beats as fixed-income trading shines; Boeing rises as Delta to buy 100 737 MAX 10 planes

US stock indexes rose on Monday after Goldman Sachs beat profit expectations, extending last week's positive momentum amid easing bets of a super-sized interest-rate hike by the Federal Reserve.

The Dow rose over 200 points in early trading, picking up from Friday when U.S. economic data showed stronger-than-expected retail sales, an uptick in consumer sentiment and lower inflation expectations.

Goldman Sachs Group Inc gained 4.2% as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading. The investment banking giant's results follow upbeat quarterly results from Citigroup Inc on Friday.

The S&P 500 banks index added 0.9% on Monday, with Bank of America Corp reversing earlier declines to rise 1.3%, even as it posted a nearly 34% drop in second-quarter profit.

"You're getting the feeling that perhaps all the bad news is out of the way and investors are looking to see if this would be a reasonable entry point," said Rick Meckler, partner at Cherry Lane Investments.

At 10:07 a.m. ET the Dow Jones Industrial Average was up 210.11 points, or 0.67%, at 31,498.37, the S&P 500 was up 30.14 points, or 0.78%, at 3,893.30, and the Nasdaq Composite was up 147.30 points, or 1.29%, at 11,599.72.

The S&P 500 technology sector index rose 1%, with chipmaker Nvidia Corp rising 5%.

Several U.S. semiconductor firms are deliberating whether to oppose a package of chip industry subsidies if the final language of the legislation, awaiting a vote on Tuesday in the Senate, disproportionately benefits manufacturers such as Intel Corp, sources familiar with the matter told Reuters.

Among other shares, Boeing Co jumped 3.3% after Delta Air Lines Inc said it will buy 100 MAX 10 jets worth about $13.5 billion at list prices and has options to buy another 30 at the Farnborough air show. Shares of Delta jumped 4.7%.

With the earnings season in full swing, analysts now expect aggregate year-on-year S&P 500 second-quarter profit growth of 5.6%, down from the 6.8% estimate at the beginning of the quarter, according to Refinitiv data.

The S&P 500 energy sector index jumped 3.1% as crude prices rose by more than $4.

Advancing issues outnumbered decliners for a 4.10-to-1 ratio on the NYSE and a 3.33-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 23 new highs and 23 new lows.