Stocks regain footing as investors focus on corporate profits
U.S. stocks were broadly higher in early afternoon trading Friday as investors cheered solid earnings from several companies. The rally extended the market's modest gains from the day before. Industrials stocks were up the most. Energy companies also rose as the price of crude oil headed higher.
The Standard & Poor's 500 index rose 21 points, or 0.9 percent, to 2,387 as of 1:03 p.m. Eastern Time. The Dow Jones industrial average added 170 points, or 0.8 percent, to 20,833. The Nasdaq composite index gained 48 points, or 0.8 percent, to 6,104. The Russell 2000 index of smaller stocks picked up 7 points, or 0.5 percent, to 1,368.
"This is a relief rally following the volatility earlier in the week," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "Despite the headwinds in Washington this week, 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."
Deere & Co. jumped 7.1 percent after the heavy equipment maker reported solid quarterly results. The stock climbed $8.05 to $120.72.
Autodesk vaulted 17 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 $16.28 to $112.11.
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 $12.58 to $154.01.
Ross Stores rose 2.1 percent after the discount retailer reported quarterly results that beat Wall Street's estimates. The stock picked up $1.27 to $62.34.
Foot Locker plunged 14.9 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 $10.47 to $59.98.
Campbell Soup gave up 2.4 percent after the company turned in disappointing quarterly results. Its shares fell $1.35 to $55.59.
Benchmark U.S. crude oil futures was up 99 cents, or 2 percent, at $50.34 a barrel in New York. Brent crude, used to price international oils, was up $1.04, or 2 percent, at $53.55 a barrel in London.
The dollar weakened to 111.40 yen from 111.49 yen on Thursday. The euro jumped to $1.1192 from $1.1101.
Bond prices fell. The 10-year Treasury yield rose to 2.24 percent from 2.23 percent late Thursday.
In Europe, Germany's DAX rose 0.4 percent, while France's CAC 40 was up 0.6 percent. Britain's FTSE 100 was up 0.4 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.