Stocks Rise in Early Trading, Narrow Weekly Losses
NEW YORK (AP) — U.S. stocks moved broadly higher in early trading on Wall Street Friday and chipped away at the week’s losses.
Markets have been volatile throughout the week as investors assess the latest corporate earnings reports. Financial results have so far been mixed. The S&P 500 closed at a record high on Monday and then wobbled from there.
Microsoft powered the technology sector, which led the broad gains early on. The software maker blew past Wall Street’s profit forecasts and reported solid growth for its cloud computing business.
Industrial stocks also helped with the heavy lifting. Boeing rose 3.2% and Union Pacific rose 1.3%.
Banks helped push the broader financial sector higher. Capital One rose 3.6% after reporting solid financial results.
Health care stocks were the biggest losers. Humana fell 1.5% and Eli Lilly fell 1.3%.
Late Thursday, investors seized on comments by New York Federal Reserve President John Williams suggesting central banks need to “take swift action” when economic conditions turn adverse. Wall Street has been expecting the Federal Reserve to cut rates at its upcoming meeting this month to help support the growing U.S. economy.
KEEPING SCORE: The S&P 500 index rose 0.2% as of 10 a.m. Eastern time. The Dow Jones Industrial Average rose 74 points, or 0.3%, to 27,296. The Nasdaq composite rose 0.4%.
INTO THE CLOUDS: Microsoft rose 2.2% after the technology company’s cloud computing business helped push fiscal fourth quarter profit well beyond Wall Street’s forecasts. Revenue from the company’s cloud computing segment surged 19% as it competes against others, including Amazon.
ABOVE THE FOLD: USA Today owner Gannett surged 25% following media reports that it is considering a combination with GateHouse Media. The reports come two months after the Gannett’s shareholders rebuffed an attempt to overthrow its board by MNG Enterprises, also known as Digital First Media.
CRAVING A BURGER: Red Robin Gourmet Burgers rose 13.2% after the company received a buyout offer of more than $518 million in cash from a private equity firm. Vintage Capital Management is offering $40 per share, a 31% premium to the burger chain’s closing price on Thursday.
STRONG STRUT: Shoe retailer Skechers surged 13.5% after blowing away Wall Street’s fiscal second quarter profit forecasts on strong sales at established stores. The company also gave investors a solid third quarter forecast.
By AP reporter Damian J. Troise