Stocks Moving Mostly Higher Amid Upbeat Earnings News - U.S. Commentary
(RTTNews.com) - After turning higher over the course of the previous session, stocks have seen some further upside in early trading on Friday. The gains have lifted the S&P 500 to a new record high.
Currently, the major averages are all in positive territory, although the Dow is up only 4.46 points or less than a tenth of a percent at 15,376.11. The Nasdaq is up 34.08 points or 0.9 percent at 3,897.23 and the S&P 500 is up 7.08 points or 0.4 percent at 1,740.23.
The early strength on Wall Street extends the upward trend seen over the past few sessions, with the major averages climbing well off the lows set earlier this month.
Traders seem to be expressing relief after lawmakers reached an agreement to reopen the government and raise the debt ceiling, although there is some concern that the temporary nature of the extension could lead to another protracted fight in a few months.
The resolution of the latest fiscal crisis in Washington has also allowed traders to pay more attention to the earnings news from big-name companies.
Shares of Google (GOOG) have moved sharply higher in early trading after the online search giant reported better than expected third quarter results.
General Electric (GE) and Morgan Stanley (MS) are also seeing early strength after reporting third quarter earnings that beat analyst estimates.
Positive sentiment has also been generated by a report from the Chinese National Bureau of Statistics showing that Chinese GDP saw a faster rate of growth in the third quarter.
The report said China's third quarter GDP rose 7.8 percent year-over-year, in line with estimates and faster than the 7.5 percent growth in the second quarter.
Significant strength has emerged among oil service stocks, as reflected by the 1.9 percent gain being posted by the Philadelphia Oil Service Index. Baker Hughes (BHI) is leading the sector higher after reporting better than expected third quarter results.
Internet, transportation, and networking stocks are also posting strong gains, while most of the other major sectors are showing more modest moves to the upside.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday, although Japan's Nikkei 225 Index bucked the uptrend and dipped by 0.2 percent. Hong Kong's Hang Seng Index jumped by 1.1 percent, while Australia's All Ordinaries Index advanced by 0.7 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index has edged up by 0.2 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.8 percent.
In the bond market, treasuries are showing a lack of direction after moving notably higher in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.583 percent.
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