Stocks Edge Higher in Morning Trade 07/19 10:48
U.S. stocks edged higher in morning trading on Wall Street Friday, chipping
away at the week's losses.
NEW YORK (AP) -- U.S. stocks edged higher in morning trading on Wall Street
Friday, chipping 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 3.7% and
Caterpillar rose 1.5%.
Banks helped push the broader financial sector higher. Capital One rose 3.2%
after reporting solid financial results.
Health care stocks were the biggest losers. Humana fell 1% and Eli Lilly
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 0.1% as of 11 a.m. Eastern time. The
Dow Jones Industrial Average rose 54 points, or 0.2%, to 27,296. The Nasdaq
composite rose 0.1%.
THE BIGGER PICTURE: After a volatile week, major U.S. indexes are on track
for their first weekly losses after two weeks of gains. Stocks are still poised
for solid monthly gains that will extend a yearlong winning streak. The S&P 500
is up 19.6% for the year and the Nasdaq is up 23.9%.
INTO THE CLOUDS: Microsoft rose 1.6% 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 23.2% 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 13.4% 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 13.3% 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.