The New York Stock Exchange building is shown Tuesday, Oct. 11, 2016, in New York. Strong earnings reports from a number of companies are driving solid gains on Wall Street in early trading, Tuesday, Oct. 18, 2016. (AP Photo/Frank Franklin II)
October 18, 2016 10:43 AM
US stocks climb in early trading on strong company earnings
ALEX VEIGA | Associated Press
U.S. stocks moved higher in early trading Tuesday as investors welcomed strong earnings reports from Netflix, UnitedHealth Group and other companies. Health care, financial and consumer-focused companies were among the big gainers, while telecom and utilities stocks lagged the market.
KEEPING SCORE: The Dow Jones industrial average gained 81 points, or 0.5 percent, to 18,168 as of 10:14 a.m. Eastern time. The Standard & Poor's 500 index rose 11 points, or 0.6 percent, to 2,138. The Nasdaq composite index added 47 points, or 0.9 percent, to 5,247. The market was rebounding from a slightly lower close the day before.
BINGE THIS: Netflix surged 19.2 percent a day after the video streaming service reported earnings that were far better than analysts were expecting. The company noted it grew its domestic and international subscribers during the quarter. The stock was up $19.13 to $118.94.
HEALTHY RESULTS: UnitedHealth Group climbed 5.6 percent after its profit swelled 23 percent to nearly $2 billion in the third quarter. The nation's largest health insurer also increased its 2016 earnings forecast. The stock rose $7.47 to $141.60.
OUTLOOK MISS: IBM slumped 4 percent a day after issuing a full-year earnings outlook that fell short of what analysts were expecting. The stock slid $6.12 to $148.65.
INFLATION WATCH: The Labor Department said that consumer prices edged up 0.3 percent last month, with much of the increase stemming from energy, housing and prescription drugs. Even so, overall inflation remained in check, as it has for the past several years. That's one reason the Federal Reserve has held down short-term interest rates. The markets anticipate the central bank will increase rates again at its upcoming meeting in December.
MARKETS OVERSEAS: In Europe, Germany's DAX was up 1.2 percent, while the CAC-40 in France was 1.2 percent higher. The FTSE 100 index of leading British shares was up 0.7 percent. Earlier in Asia, Japan's Nikkei 225 added 0.4 percent, while South Korea's Kospi gained 0.6 percent. Hong Kong's Hang Seng index jumped 1.6 percent. Australia's S&P/ASX 200 rose 0.4 percent.
OIL: U.S. benchmark crude oil fell 5 cents to $49.87 a barrel in New York. Brent crude, the international standard, slid 2 cents at $51.50 a barrel in London.
BONDS AND CURRENCIES: Bond prices didn't move much. The yield on the 10-year Treasury note held steady at 1.77 percent. In currency markets, the dollar strengthened to 103.93 yen from 103.85 on Monday, while the euro weakened to $1.0980 from $1.0997.