💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

US STOCKS-Wall St rises on earnings, China data, weak dollar

Published 10/21/2010, 11:16 AM
Updated 10/21/2010, 11:20 AM

* Netflix, eBay jump after quarterly results

* Initial jobless claims fall more than forecast

* Indexes: Dow, S&P, Nasdaq all up 0.8 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to mid-morning trade)

By Rodrigo Campos

NEW YORK, Oct 21 (Reuters) - Strong corporate earnings led U.S. stocks higher on Thursday, while a weaker U.S. dollar and reassuring data from China gave an extra boost to equities.

Blue chips McDonald's Corp and Travelers Cos Inc rose after reporting better-than-expected results, while eBay Inc , Netflix Inc and Amazon.com boosted both the consumer sector and the Nasdaq Composite.

"Corporate earnings and the lower dollar are helping the stock market today," said Paul Nolte, managing director at Dearborn Partners in Chicago. "U.S. equities are looking at China as continuing to have fairly robust growth, and that's good for the global economy."

Economic growth in China, the world's No. 2 economy, slowed in the third quarter, but was still at a healthy level, data showed, calming fears after recent monetary tightening. For details, see [ID:nTOE69K00X]

The euro rose against the dollar in choppy trade as investors wrestled with uncertainty over the size and shape of expected U.S. monetary easing.

The Dow Jones industrial average <.DJI> added 84.99 points, or 0.77 percent, to 11,192.96. The Standard & Poor's 500 <.SPX> rose 8.84 points, or 0.75 percent, to 1,187.01. The Nasdaq Composite <.IXIC> gained 19.85 points, or 0.81 percent, to 2,477.24.

Online auctioneer eBay rose 8.8 percent to $27.91 and Netflix, the movie rental and streaming service, jumped 14 percent to $173.49 after both reported upbeat results late Wednesday. [ID:nN20228251] and [ID:nN20229905].

Amazon advanced 4.1 percent to $165.18 after it was upgraded by Bank of America Merrill. It is expected to post results after the closing bell.

McDonald's gained 2.5 percent to $79.31 after it beat expectations for quarterly profit and same-store sales growth in September.

Travelers was up 1 percent to $55.16 after the largest publicly traded U.S. property casualty insurer easily beat estimates as premiums rose in its personal insurance lines. [ID:nN21165866] and [ID:nN21266849].

The Conference Board said U.S. economic activity posted a third successive increase in September, but at a pace so modest that it implied only lackluster growth ahead. Also, new claims for unemployment benefits fell more than expected last week. [ID:nN21275986] (Editing by Jeffrey Benkoe)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.