Solid earnings, Britain-Europe deal push US stocks higher




Financial Markets Wall Street
Financial Markets Wall Street  

Stocks moved broadly higher in afternoon trading on Wall Street Thursday after several large companies delivered surprisingly good results.

A breakthrough in negotiations over Britain's exit from the European Union also injected confidence into markets and prompted investors to move money into riskier holdings.

Health care and communication services stocks drove most of the market's gains, outweighing a slide in technology and energy companies. The gains had the market on track to claw back modest losses from a day earlier.

Netflix rose after handily beating Wall Street's third-quarter profit forecasts. Solid earnings from conglomerate Honeywell and railroad CSX lifted industrial stocks.

Traders also bid up shares in Morgan Stanley after the bank reported reporting solid third-quarter results.

Bond prices were little changed. The yield on the 10-year Treasury note held at 1.74%.

The technology sector was the weakest spot in the market. IBM fell 5.7% and dragged the sector lower after giving investors a weak third-quarter revenue report. Chipmaker Intel fell 1.5%.

Investors have shifted their focus this week to the latest round of corporate earnings after weeks of trade war-related swings. Companies have turned in surprisingly good results and have so far managed to ease some of investors' concerns over the economy with their forecasts.

Coca-Cola, American Express and Schlumberger report their results Friday.

KEEPING SCORE: The S&P 500 index was up 0.3% as of 1:34 p.m. Eastern time. The Dow Jones Industrial Average added 23 points, or 0.1% to 27,025. The Nasdaq gained 0.4%. The Russell 2000 index of smaller stocks did much better than other indexes and rose 0.9%.

STREAMING PROFIT: Netflix rose 3.5%. The profit beat came even as revenue and subscriber growth fell short of forecasts, though some investors had been bracing for an even bigger letdown.

The company is facing major threats to its video streaming service from Apple and Disney, among others. That, and investors' concerns about subscriber growth, have been weighing on the stock recently, pulling it down 22% from a recent peak in early July.

FEELING HEALTHY: October has been good for health care stocks, and this week is now exception. The sector is up 2.3% for the month so far and 2.6% this week. By comparison, the S&P 500 index is up about 1% for the week and 0.8% for the month.

Even with the recent gains, health care stocks are well behind most other sectors, with only a 6.6% gain for the year. Most other sectors are up by double digit percentages.

RIGHT TRACK: CSX rose 2.2% after the railroad beat Wall Street's third-quarter profit forecasts. The company compensated for a 5% decline in shipping volume by cutting costs.

OVERSEAS: Major stock indexes in Europe edged mostly lower after Britain and the European Union reached a tentative deal over their pending separation. Britain is set to leave the trading bloc on Oct. 31 and both sides want a deal to regulate trade and other issues.

The deal must still be approved by the bloc and ratified by the European and U.K. Parliaments. It faces a potentially tough road to approval in Britain's Parliament.

___

AP Business Writer Damian J. Troise contributed.

COMMENTS

More Related News

IMPORTANT INVESTOR NOTICE: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Cabot Oil & Gas Corporation and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
IMPORTANT INVESTOR NOTICE: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Cabot Oil & Gas Corporation and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm

LOS ANGELES, CA / ACCESSWIRE / September 17, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class-action lawsuit against Cabot Oil & Gas Corporation ("Cabot" or "the Company") (NYSE:COG) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.

SHAREHOLDER ALERT: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against OneSpan Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
SHAREHOLDER ALERT: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against OneSpan Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm

LOS ANGELES, CA / ACCESSWIRE / September 17, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against OneSpan Inc.

How photographers track down stolen pictures
How photographers track down stolen pictures

Some call them copyright trolls, but these companies say they defend photographers' rights.

Britain will seek to use treaty breaching powers if EU acts in bad faith
Britain will seek to use treaty breaching powers if EU acts in bad faith

Britain will ask parliament for permission to use powers which breach its Withdrawal Agreement with Brussels if it decides the European Union has not acted in good faith in talks on a trade deal, the government said. Britain also made a new commitment to, at the same time as acting unilaterally, trying to solve any row with the EU through the treaty's own dispute resolution mechanism. Talks to agree a trade deal and future relationship with the EU are on a knife edge after years of wrangling, with just months until a transition deal ends, endangering nearly $1 trillion of trade.

EU details energy savings and renewables push to reach tougher climate target
EU details energy savings and renewables push to reach tougher climate target

The European Union needs to hike its renewable energy and energy saving targets, according to its analysis published on Thursday of how the bloc could make deeper emissions cuts this decade. The European Commission wants the EU to slash its greenhouse gas emissions by at least 55% by 2030, against 1990 levels, which experts say is the minimum needed to reach net zero emissions by 2050. The EU's current 2030 emissions target is for a 40% cut, though the bloc is on track for a deeper 45% cut.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy