Earn­ings back in fo­cus, stocks re­bound again

Sun Sentinel Broward Edition - - MONEY - By Alex Veiga Associated Press

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.

DREW ANGERER/GETTY

Traders saw the Dow rally more than 141 points Fri­day af­ter los­ing over 370Wed­nes­day.

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