DAMIAN J. TROISE
AP Business Writer
NEW YORK (AP) — Stocks moved broadly higher in midday 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.
Netflix rose after handily beating Wall Street’s third-quarter profit forecasts.
Solid earnings from conglomerate Honeywell and railroad CSX lifted industrial stocks.
Bank stocks made strong gains as bond yields rose. Morgan Stanley climbed 3.1% after reporting solid third-quarter profit and revenue.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.73% from 1.74% late Wednesday.
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 rose 0.2% as of noon Eastern time. The Dow Jones Industrial Average fell 16 points, or 0.1% to 26,985. The Nasdaq rose 0.3%. The Russell 2000 index of smaller stocks did much better than other indexes and rose 0.8%.
OVERSEAS: Markets in Europe edged higher as 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.
Stocks in Asia were mixed.
STREAMING PROFIT: Netflix rose 4.9%. 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, and investors’ concerns about subscriber growth have been weighing on the stock in recent months.
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.
DAMIAN J. TROISE