US stocks rise on earnings, oil bounce

GMT 22:22 2015 Tuesday ,28 July

Arab Today, arab today US stocks rise on earnings, oil bounce

US stocks
New York - AFP

US stocks snapped a five-day losing streak Tuesday, posting strong gains after positive earnings from UPS and a big rally in petroleum-linked stocks.

The Dow Jones Industrial Average rose 189.68 points (1.09 percent) to 17,630.27.

The broad-based S&P 500 gained 25.61 (1.24 percent) at 2,093.25, while the tech-rich Nasdaq Composite Index jumped 49.43 (0.98 percent) to 5,089.21.

Shipping company UPS powered up 5.1 percent after reporting second-quarter net income of $1.2 billion, up from $454 million in the year-ago period.

Dow member ExxonMobil jumped 4.1 percent, while fellow oil and gas producers Apache and ConocoPhillips gained 4.4 percent and 3.1 percent, respectively, as oil prices stabilized after a dive.

"It's not particularly surprising to see the market acting a little better today as we got significantly oversold," said Michael James, managing director of equity trading at Wedbush Securities.

Investors were looking ahead to a policy announcement Wednesday from the US Federal Reserve that could signal the timing of an interest rate increase later this year.

Intel rose 2.2 percent and Micron Technology surged 9.0 percent after the two chipmakers unveiled what they touted as a "breakthrough" memory chip that permits users to store and process huge amounts of data more quickly.

Amgen leaped 4.4 percent on speculation the biotech company could be an acquisition target. RBC Capital said a takeover of Amgen probably is not feasible until at least 2016, but predicted the company could boost its earnings outlook when it reports results later this week.

Pfizer jumped 2.9 percent after it lifted its 2015 profit forecast following second-quarter earnings of 56 cents per share, four cents above analyst expectations.

Ford gained 1.9 percent. The second-largest US automaker said profit soared 44 percent in the second quarter, its best quarter in 15 years.

General Motors climbed 0.9 percent after announcing it would spend $5 billion to launch a new family of Chevrolet vehicles targeted for emerging markets, co-developed by Chinese partner SAIC Motor.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.25 percent from 2.22 percent Monday, while the 30-year advanced to 2.97 percent from 2.94 percent. Bond prices and yields move inversely.


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