U.S. stock indexes shake off early slump and close higher

NEW YORK» U.S. stocks reversed course from an early slump and closed higher Thursday to break a two-day losing streak after technology and bank stocks rallied.

Corporate earnings are in full swing, and investors have been cautiously assessing results and company statements. The volatile market is still on track for a weekly loss despite the S&P 500 opening the week with a record high close. The pullback has barely dented the big gains made by every major index this year, including a 19.5 percent rise for the S&P 500 index.

The latest batch of results is providing a better picture of the economy after months of ups and downs in the market because of policy concerns and lingering trade disputes.

“We’ve been watching the game and now we actually get to see the scorecard,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

The results so far have reflected financial strength from banks as the broader economy holds up with solid job growth and consumer confidence.

“The consumers are still making things happen out there, and it’s showing up in the earnings to a surprising degree,” he said.

The S&P 500 index rose 10.69 points, or 0.4 percent, to 2,995.11. The Dow Jones industrial average edged up 3.12 points to 27,222.97. It was down as much as 151 points earlier. The Nasdaq composite rose 22.04 points, or 0.3 percent, to 8,207.24.

IBM rose 4.6 percent after reporting solid results. The company, along with Apple, helped lift the technology sector to lead the broader gains.

Banks led financial stocks higher. BB&T rose 2.8 percent and SunTrust Banks rose 2.7 percent. Both reported earnings that easily beat analysts’ estimates.

Medical equipment makers helped health care stocks reverse course after an early loss. Danaher rose 2.4 percent after reporting solid second-quarter results. Abbott Laboratories and Thermo Fisher both rose 2.3 percent.

Market indexes were down most of the day after Netflix plunged 10.3 percent in heavy trading and took other communications companies down with it. The streaming video service reported a slump in new subscribers that could mean trouble as it faces a new wave of competition from Disney and Apple.

Communications stocks remained the day’s biggest loser. Consumer-oriented and energy stocks also fell. Dollar Tree shed 1.9 percent.

Financial results remain a mixed bag for many companies. Only about 13 percent of S&P 500 companies have reported, according to FactSet, and analysts expect profits to fall 2.4 percent overall when every report is tallied.

Union Pacific rose 5.9 percent after the railroad operator reported profit growth and beat Wall Street forecasts despite hauling less freight. The company cut expenses by 7 percent during the quarter as shipments fell amid ongoing trade disputes. On Wednesday, rival CSX cut its revenue forecast as it deals with a slowdown in shipments.

Philip Morris International rose 8.2 percent after the cigarette maker raised its profit forecast for the year following a solid second quarter.