U.S. stocks gain on earnings, Portugal news; Dow rises 0.46%


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Investing.com - U.S. stocks snapped a four-day losing streak and rose on Monday, buoyed by earnings at Berkshire Hathaway Inc (NYSE:BRKa) as well as news of a bailout for Portuguese financial institution Banco Espirito Santo.

At the close of U.S. trading, the Dow 30 rose 0.46%, the S&P 500 index rose 0.72%, while the NASDAQ Composite index also rose 0.72%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was down 11.80% at 15.02.

Investment legend Warren Buffett's stock-picking vehicle Berkshire Hathaway Inc (NYSE:BRKa) reported second-quarter profits of $6.4 billion, up 41% on year, which drew applause on Wall Street, as an improving U.S. economy bolstered the company's investment portfolio.

Stocks also rose on news that Portugal's central bank took control of Banco Espirito Santo (LISBON:BES) via bailout, which allayed concerns that the financial institution's problems may rattle the euro zone periphery.

Elsewhere, a second look at Friday's July jobs report also boosted stocks.

The Labor Department reported Friday that the U.S. economy added 209,000 jobs in July, missing expectations for an increase of 233,000, though July marked the sixth consecutive month that the U.S. economy created over 200,000 new payrolls.

The report also showed that the U.S. unemployment rate ticked up to 6.2% last month from 6.1% in June. Analysts had expected the rate to remain unchanged in July, though the report revealed that more unemployed Americans were entering the labor force in search of work last month, a positive sign.

The unemployment rate does not include discouraged unemployed individuals who have given up actively searching for work, so a decision by many to look for jobs can send the headline rate higher, though it also suggests out-of-work Americans are more hopeful with their job prospects.

Leading Dow Jones Industrial Average performers included Walt Disney Company (NYSE:DIS), up 2.18%, Exxon Mobil Corporation (NYSE:XOM), up 1.35%, and Caterpillar Inc (NYSE:CAT), up 1.27%.

The Dow Jones Industrial Average's worst performers included Procter & Gamble Company (NYSE:PG), down 0.53%, Boeing Company (NYSE:BA), down 0.37%, and Pfizer Inc (NYSE:PFE), down 0.36%.

European indices, meanwhile, ended the day mixed.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.07%, France's CAC 40 rose 0.34%, while Germany's DAX fell 0.61%. Meanwhile, in the U.K. the FTSE 100 fell 0.02%.

On Tuesday, the U.S. is to publish data on factory orders, while the Institute of Supply Management is to release data on service-sector activity.

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This article appears in: Investing Forex and Currencies
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