Earnings back in focus, stocks rebound again
Industrial companies ledU.S. stocks higher Friday, giving the stock market its second gain in two days.
The rallywas broad, with all 11 industry sectors in the Standard& Poor’s 500 index closing higher. That included energy stocks, which climbed as the price of crude oil rose.
The gains helped trim some of the losses that traders booked two days earlier when the stock market posted itsworst day in eight months amid deepening political turmoil inWashington.
Investors appeared to shrug off those concerns Friday, preferring to focus on the latest batch of corporate earnings, which included solid results fromDeere& Co. and other companies.
“If you took aweek off, you probably thought you didn’t miss much becausewe’re at about the same levels today aswewere last Friday,” said Sean Lynch, co-head of global equity strategy at Wells Fargo Investment Institute. “And yet, we spiked to a new all-time high on the S&P onMonday, we suffered theworst decline of the year on Wednesday, and againwe’re back within 1 percent of that all-time high today.”
The S&P 500 index rose 16.01 points, or 0.7 percent, to 2,381.73. The DowJones industrial average added141.82 points, or 0.7 percent, to 20,804.84. TheNasdaq composite index gained 28.57 points, or 0.5 percent, to 6,083.70.
Four stocks rose for every one that fell on the NewYork Stock Exchange. Still, indexes ended theweek lower.
Bond prices edged lower. The10-year Treasury yield rose to 2.24 percent from2.23 percent late Thursday.
Investors had grown concernedWednesday that President Donald Trump’s pro-business agenda could be hindered by fallout fromallegations that he asked the FBI to end an investigation into former national security adviser Michael Flynn, sparking the steep sell-off.
But they remained in a buying mood Friday, nudgingU.S. stock indexes higher early on, extending modest gains fromthe day before.
“It’s clearly been a roller-coasterweek, with equities being swayed between political uncertainty and improving fundamentals,” said Terry Sandven, chief equity strategist atU.S. Bank WealthManagement. Despite the tumult in Washington,
“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.”
Traders bid up shares in several companies like Deere& Co. that reported solid quarterly results Friday.
The heavy equipment maker’s shares jumped $8.23, or 7.3 percent, to $120.90.
Autodesk vaulted 14.7 percent after the design software company raised its earnings forecast for the year and reported a loss in its latest quarter thatwas narrower than analystswere expecting.
The stockwas the biggest gainer in the S&P 500, adding $14.08 to $109.91.
Among metals, the price of gold inched up 80 cents to settle at $1,253.60 per ounce. Silver added 13 cents to $16.80 per ounce. Copper rose 5 cents to $2.58 per pound.
Traders saw the Dow rally more than 141 points Friday after losing over 370Wednesday.