Stocks boosted by company earnings
U.S. stocks climbed Thursday as industrial companies, banks, technology and materials firms and energy companies all rallied. The Nasdaq composite closed at a new high. A strong day of corporate results left investors feeling better about the economy.
For more than a week, investors have been poring through company earnings for signs the economy is growing at a faster pace, and Thursday they believed they found them. Railroad operator CSX gave transportation companies a big boost; Sherwin-Williams raised its annual projections, lifting makers of basic materials.
It’s still early in this earnings season and a few highprofile companies have disappointed this week, so stocks have wobbled recently. But for the most part experts and investors are encouraged by what they’re hearing. They say companies feel good about the economy and expect stronger growth and bigger profits.
American Express rose 5.9% to $80.02 after saying it had a solid quarter. SLM, the parent of student lender Sallie Mae, leaped 10.1% to $12.70 after its revenue far exceeded expectations. Citizens Financial rose 3.1% to $35.27 after its report.
“The banks are the shining star” so far, said J.J. Kinahan, chief market strategist at TD Ameritrade, although he speculated that Goldman Sachs had a down quarter because it has lost several top executives to the Trump administration.
CSX jumped 5.6% to $49.58 after it announced a bigger profit and more revenue than expected in the first quarter. CSX also said restructuring and spending cuts will increase its profit about 25% this year and that it will buy back more stock and raise its dividend.
Railroads and transportation companies such as trucking firms and airlines rose. Industrial companies were among the top performers Thursday.
Sherwin-Williams raised its profit guidance for the year as paint sales jumped and prices increased. The stock, which climbed 4% to $324.02, helped basic materials firms. So did steel maker Nucor, which rose 4.7% to $60.35 after its first-quarter results beat expectations.
Equipment rental firm United Rentals flopped 5.2% to $113.24 after its sales fell far short of expectations.
Verizon fell 1.1% to $48.41 after saying that it lost wireless cellphone subscribers and its profit sank 20%. That pushed other telecom firms lower. Other stocks that pay big dividends fell as rising bond yields made them less appealing.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.23% from 2.22%.
Benchmark U.S. crude slipped 17 cents to $50.27 a barrel while Brent crude rose 6 cents to $52.99 a barrel. Wholesale gasoline rose 1 cent to $1.67 a gallon. Heating oil was flat at $1.58 a gallon. Natural gas fell 3 cents to $3.16 per 1,000 cubic feet.
Gold climbed 40 cents to $1,283.80 an ounce. Silver fell 14 cents to $18.02 an ounce. Copper gained 1 cent to $2.54 a pound.
The dollar rose to 109.31 yen from 108.70 yen. The euro rose to $1.0722 from $1.0721.