Earnings drive gains for USA stocks in early trading

Earnings drive gains for USA stocks in early trading

The benchmark U.S. indices recovered from the selloff seen in the last two sessions to end marginally higher on Wednesday, with the Dow Jones Industrial Average and the S&P 500 indices posting the highest monthly gains since March 2016.

The Dow Jones Industrial Average plunged more than 500 points on Friday as a strong U.S.jobs report boosted bond yields and bolstered expectations that the U.S. Federal Reserve will hike its trend-setting interest rate.

"You have a jobs report today that was pretty robust all kind of feeding into the higher interest rates, greater inflation story, and I think the markets are trying to grapple with that right now", said Carlson.

Google parent Alphabet fell 4.5 per cent after the company's quarterly profit missed analysts' estimates.

The Russell 2000 index of smaller-company stocks gave up 7.83 points, or 0.5 percent, to 1,574.98. The losses outweighed solid gains by financial stocks, which got a boost as climbing bond yields set the stage for higher interest rates on mortgages and other loans.

The CBOE Volatility Index, the most widely followed barometer of expected near-term volatility for the S&P 500 Index rose more than four points to 17.86, its highest since November 2016. The Nasdaq added 34 points, or 0.5 percent, to 7,436.

Investors continued to sift a raft of corporate earnings reports Thursday.

One bright spot was Amazon, which rose 6.3 percent after the online retailer reported a record profit of near $2 billion due to strong sales and tax law changes.

The Standard & Poor's 500 index gave up 19 points, or 0.7 percent, to 2,802. The stock added $6.20 to $193.09.

Stocks were lifted earlier by a surge in Boeing (BA.N) which forecast better-than-expected full-year profits and said it expects to deliver a record number of commercial aircraft in 2018, sending its shares up 4.9%.

OIL: Benchmark U.S. crude rose 55 cents to $65.28 per barrel on the New York Mercantile Exchange.

The Dow fell 515 points, or 2 percent, to 25,675. Brent crude, used to price worldwide oils, gained 26 cents to $69.15 per barrel in London.

The Fed chose to leave interest rates unchanged, but said it expects inflation to move "up this year and to stabilize" around its 2 percent target.

BOND YIELDS: Bond prices rose. If that rise holds it will translate to a 120-point gain for the Dow. London's FTSE 100 fell 0.4 percent.

CURRENCIES: The dollar rose to 108.94 yen from 108.78 yen on Tuesday. Japan's Nikkei 225 jumped 1.7 percent and South Korea's Kospi added 0.1 percent. The euro strengthened to $1.2478 from $1.2410. S&P 500 futures were ahead 0.5%.

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