Strong company earnings news sends stock indexes higher

William McInerney
Trader William McInerney, center, works on the floor of the New York Stock Exchange, Thursday, Oct. 22, 2015. Stocks are moving higher in early trading after some encouraging results from McDonald's, eBay and other companies. (AP Photo/Richard Drew)

U.S. stocks moved higher in morning trading Thursday as investors welcomed encouraging earnings from McDonald’s, eBay and other companies. The market also got a lift from a rally in European stocks after the head of the European Central Bank said the bank will consider expanding its stimulus program in December.

KEEPING SCORE: The Dow Jones industrial average rose 218 points, or 1.3 percent, to 17,387 as of 11:05 a.m. Eastern time. The Standard & Poor’s 500 index added 26 points, or 1.3 percent, to 2,045. The Nasdaq gained 73 points, or 1.5 percent, to 4,913.

E-GAINER: EBay jumped 11.2 percent a day after the e-commerce company reported results that came in well ahead of what analysts were expecting. The stock rose $2.72 to $26.93.

HAPPY MEAL: McDonald’s climbed 7.3 percent after the world’s largest burger chain said its sales increased in the third quarter. McDonald’s shares added $7.46 to $110.

FEELING SICK: Several health care stocks were trading lower. Tenet Healthcare slumped $4.81, or 13 percent, to $30. HCA Holdings fell $2.83, or 4 percent, to $68.37, while fellow hospital owner Universal Health Services slid $11.02, or 8.8 percent, to $114.45.

FALLING SHORT: Homebuilder PulteGroup fell 6.5 percent after the company reported third-quarter earnings and revenue that fell short of Wall Street’s forecasts. The builder shed $1.26 to $18.19.

CREDIT CRIMPED: Shares in American Express tumbled 5.7 percent a day after the credit card issuer reported a 16 percent drop in profits, missing analysts’ estimates. American Express said it was hurt by higher expenses and the strong U.S. dollar. It also cut its full-year forecast. The stock slid $4.33 to $72.18.

EUROPEAN MARKETS: Germany’s DAX rose 2.5 percent, while the CAC-40 in France rose 2.3 percent. The FTSE 100 index of leading British shares gained 0.6 percent.

ASIA’S DAY: The Shanghai Composite Index finished up 1.4 percent following a 3 percent slide Wednesday. Elsewhere in Asia stock markets closed mostly lower. Japan’s Nikkei 225 fell 0.6 percent and South Korea’s Kospi dropped 1 percent. Hong Kong’s Hang Seng fell 0.6 percent.

ENERGY: Benchmark U.S. crude added 23 cents to $45.43 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 35 cents to $48.20 a barrel in London.

BONDS AND CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.04 percent from 2.03 percent the day before. The euro fell to $1.1160 while the dollar rose to 120.37 yen.

blog comments powered by Disqus