US stocks broadly higher in afternoon trading; oil rises
Industrial companies led U.S. stocks broadly higher in afternoon trading Friday, extending the market’s modest gains from the day before. Investors were cheering solid earnings from several companies. Banks and materials stocks were also up sharply. Energy companies rose as the price of crude oil headed higher.
KEEPING SCORE: The Standard & Poor’s 500 index rose 19 points, or 0.8 percent, to 2,385 as of 12:26 p.m. Eastern Time. The Dow Jones industrial average added 153 points, or 0.7 percent, to 20,816. The Nasdaq composite index gained 45 points, or 0.7 percent, to 6,100. The Russell 2000 index of smaller stocks picked up 8 points, or 0.6 percent, to 1,369.
The gains were broad. Four stocks rose for every one that fell on the New York Stock Exchange, and all 11 industry sectors in the S&P 500 rose. Major indexes are still on track to post modest declines for the week, however, following a big drop on Wednesday triggered by the deepening political turmoil in Washington.
THE QUOTE: “It’s clearly been a roller coaster week, with equities being swayed between political uncertainty and improving fundamentals,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. Despite the tumult in Washington, “President Trump’s pro-growth agenda of tax reform, less regulation, infrastructure spend and the like, in our view, still remain drivers of higher stock prices.”
DIGGING IN: Deere & Co. jumped 7.6 percent after the heavy equipment maker reported solid quarterly results. The stock climbed $ 8.55 to $ 121.22.
EXPECTATIONS EXCEEDED: Autodesk vaulted 15.6 percent after the design software company raised its earnings forecast for the year and reported a loss in its latest quarter that was narrower than analysts were expecting. The stock added $ 14.99 to $ 110.82.
BIG DEALER: McKesson jumped 8.9 percent after the prescription drug distributor reported earnings for its latest quarter that easily beat Wall Street’s forecasts. Its shares gained $ 12.57 to $ 154.01.
EARNINGS BEAT: Ross Stores rose 1.9 percent after the discount retailer reported quarterly results that beat Wall Street’s estimates. The stock picked up $ 1.13 to $ 62.20.
TRIPPED UP: Foot Locker plunged 14.7 percent after the athletic footwear and apparel retailer’s latest quarterly profits fell short of analysts’ forecasts. The stock was the biggest decliner in the S&P 500, shedding $ 10.35 to $ 60.10.
UNPALATABLE: Campbell Soup gave up 2.1 percent after the company turned in disappointing quarterly results. Its shares fell $ 1.21 to $ 55.73.
ENERGY: Benchmark U.S. crude oil futures was up $ 1.13, or 2.3 percent, at $ 50.48 a barrel in New York. Brent crude, used to price international oils, was up $ 1.13, or 2.2 percent, at $ 53.64 a barrel in London.
CURRENCIES: The dollar weakened to 111.43 yen from 111.49 yen on Thursday. The euro jumped to $ 1.1187 from $ 1.1101.
TREASURY YIELDS: Bond prices fell. The 10-year Treasury yield rose to 2.24 percent from 2.23 percent late Thursday.
MARKETS OVERSEAS: In Europe, Germany’s DAX rose 0.4 percent, while France’s CAC 40 was up 0.7 percent. Britain’s FTSE 100 was up 0.5 percent. In Asia, Japan’s benchmark Nikkei 225 gained 0.2 percent. South Korea’s Kospi added nearly 0.1 percent. Hong Kong’s Hang Seng rose 0.3 percent.