Stocks Move Broadly Higher, Led by Technology Companies
NEW YORK (AP) — U.S. stocks moved broadly higher in early trading Wednesday on Wall Street, reversing course from a downturn that ended an eight-day winning streak.
Technology and health care companies led the gains. Microsoft and Cisco systems both rose just under 1%. Drug Developer Gilead Sciences rose 1.7%
Delta Air Lines was the first major U.S. company to report earnings and it easily beat forecasts. The solid results helped lift competitors, including American Airlines. Levi's also gained ground after swinging to a quarterly profit in its first period as a publicly traded company.
The early corporate earnings reports are starting to trickle in as investors keep a wary eye on global economic developments.
Central banks are being watched closely by Wall Street for what they say, or don't say. The European Central Bank has left its policy promises and interest rates unchanged as it weighs looming risks to the economy from trade disputes. The Federal Reserve is set to release minutes from its latest policy meeting later Wednesday.
Despite a downturn in stocks on Tuesday, the broader market has been steadily gaining in 2019. The S&P 500 is up 15% for the year.
KEEPING SCORE: The S&P 500 index rose 0.1% as of 10 a.m. Eastern Time. The 30-stock Dow Jones Industrial Average slipped 32 points, or 0.1 percent, to 26,121, due entirely to drops in Boeing and Home Depot. The Nasdaq, which is heavily weighted with technology stocks, rose more, adding 0.3%.
Small-company stocks, which investors tend to favor when they're feeling bullish about the economy, rose more than the rest of the market. The Russell 2000 rose 0.5 percent.
WHEELS UP: Delta Air Lines shares lifted off after it gave investors a better than-expected quarterly report and forecast. The stock jumped as much as 2% before giving up some of its early gains. It was up 0.2 percent in mid-morning trading.
The airline's profit surged 30% as ticket sales and the renewal of a deal with American Express helped lift revenue. It is also projecting a strong second quarter, giving investors a profit forecast that is mostly above expectations.
BLUE JEANS IN THE BLACK: Levi Strauss & Co. rose 6.4% after the iconic jeans and clothing maker told investors it swung to a profit in its first quarter since going public.
A 7% increase in revenue drove profit during the quarter, indicating that investments online and in its denim products are paying off. The company now expects to invest as much as $200 million to open 100 new stores over the next year as well as invest in other areas. It currently operates roughly 800 stores globally.
SLIPPERY QUARTER: WD-40, which makes the popular lubricant for home and industrial uses, fell 4.9% after its fiscal second-quarter revenue fell short of Wall Street forecasts.
MUTED INFLATION: Bond prices rose, sending yields lower, after the government reported that a key measure of consumer price inflation remained in check last month. The yield on the 10-year Treasury note, which is used to set interest rates on mortgages and many other kinds of loans, fell to 2.47% from 2.50%.
By AP reporter Damian J. Troise