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

Britain
Britain's Johnson sets off on post-election Brexit mission
  • World
  • 2019-12-16 03:17:56Z

Prime Minister Boris Johnson will unveil a new government Monday that wields a sweeping mandate to take Britain out of the European Union after years of acrimonious debate. Johnson's simple promise to "get Brexit done" resonated in a snap election Thursday that became a re-run of Britain's 2016 EU membership referendum. The arguments were settled when Johnson's Conservative party secured its biggest majority in the House of Commons since the heyday of Margaret Thatcher in the 1980s.

FBI breaks up 2 illegal streaming sites - including iStreamItAll, with more subscribers than Netflix, Amazon Prime and Hulu
FBI breaks up 2 illegal streaming sites - including iStreamItAll, with more subscribers than Netflix, Amazon Prime and Hulu
  • US
  • 2019-12-16 00:06:44Z

Darryl Polo and Luis Villarino, both of Las Vegas, have pleaded guilty to copyright infringement charges for operating iStreamItAll and Jetflix.

UK government
UK government's priority is to leave EU on January 31, secure trade deal: Gove

After the Conservatives were re-elected last week with a majority of 80 seats, Prime Minister Boris Johnson will pursue twin priorities in government - to fulfill his promise to "get Brexit done" and plough money into Britain's health service. "What I can absolutely confirm is that we'll have an opportunity to vote on the Withdrawal Agreement Bill in relatively short order and then we will make sure that it passes before Jan. 31," Gove told Sky News.

White gold: Cyprus
White gold: Cyprus' halloumi cheese entangled in politics

Dairy farmers on Cyprus refer to halloumi as "white gold." The salty, rubbery cheese made from goats' and sheep's milk and prized for its ability to withstand a grill without melting is the country's leading export. Cypriot authorities have spent years trying to get the European Union to recognize halloumi, or hellim in Turkish, as a traditional product of the east Mediterranean island nation. Receiving the EU's top quality mark - the "Protected Designation of Origin" - would mean only halloumi made in Cyprus could be marketed abroad under that name.

Brexit Wins, Impeachment Wrangling and Space Junk: Weekend Reads
Brexit Wins, Impeachment Wrangling and Space Junk: Weekend Reads
  • World
  • 2019-12-14 13:00:05Z

(Bloomberg) -- Want to receive this post in your inbox every day? Sign up for the Balance of Power newsletter, and follow Bloomberg Politics on Twitter and Facebook for more.Boris Johnson won a strong majority in the U.K. election, virtually guaranteeing the prime minister will see through his vow to take Britain out of the European Union. The wrangling over Donald Trump's impeachment trial is shifting to the Republican camp, while an icon of U.S. business has had to learn the hard way how to navigate the president's administration.From Russia, read about how a colonel in today's version of the KGB amassed a fortune, and in Italy, a region long ruled by leftists may fall to Matteo...

Leave a Comment

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

Cancel reply

Comments

Top News: Economy