A new financial lifeline for Greece and strong corporate earnings helped push United States stocks higher on Thursday.
Stocks rose from the start, following a jump in major European indexes, as strong second-quarter results from Netflix, eBay, Citigroup and other companies fed the buying. By the end of the day, nine of 10 industry sectors of the Standard & Poor’s 500-stock index posted gains.
Investors have been worried about a possible Greek financial collapse, plunging Chinese stocks and Puerto Rico’s struggles to pay its debt. But investors put those concerns aside as upbeat second-quarter company results suggested that earnings might turn out better than expected. A key gauge of anxiety among investors, the Vix, was down nearly 40 percent on Thursday from a week ago.
“Some of the red flags in the market have come down, and now the market can look to earnings,” said Kevin Dorwin, a managing principal of Bingham, Osborn & Scarborough, an investment firm based in San Francisco.
The S.&P. 500 gained 16.89 points, or 0.8 percent, to 2,124.29. The Dow Jones industrial average climbed 70.08 points, or 0.4 percent, to 18,120.25. The Nasdaq rose 64.24 points, or 1.3 percent, to 5,163.18.
Stocks in Europe got a boost from news that Greek lawmakers had approved tax increases, cuts to pensions and other measures demanded by its creditors. That news was followed by an announcement from the European Union that it would provide a short-term loan to Greece. And the European Central Bank said it would raise the amount of emergency liquidity available to the country’s banks.
Germany’s DAX and France’s CAC-40 each climbed 1.5 percent.
Among United States companies posting earnings, Netflix was a big winner. Its stock soared 18 percent, the biggest gain in the S.&P. 500. Investors were reacting to an announcement on Wednesday that the company had added 3.3 million video-streaming subscribers, far more than projected. The shares climbed $ 17.68, to $ 115.81.
Since the start of earnings season a week ago, 38 companies in the S.&P. 500 have reported results, and most have beaten expectations. That has raised hope that earnings will not be as bad as many had feared. S&P Capital IQ, a financial data provider, is predicting that earnings at companies in the S.&P. 500 will fall 3.8 percent from a year earlier.
Earnings expectations may be low, but “if today is any indication, three-quarters of the companies will beat” them, said Jack Ablin, chief investment officer of BMO Private Bank.
Citigroup climbed $ 2.13, or 3.8 percent, to $ 58.59 after announcing profits had rebounded in the second quarter, when the bank had recorded a huge legal settlement for its role in the housing bubble and financial crisis.
Companies reporting on Friday include General Electric, Honeywell and Kansas City Southern.
In China, the Shanghai composite index rose after two days of big drops, climbing 0.5 percent.
Benchmark United States crude oil lost 55 cents to settle at $ 51.24 a barrel in New York. Brent crude, a benchmark for international oils, rose 46 cents to settle at $ 57.51 a barrel in London.
In other futures trading on the New York Mercantile Exchange, wholesale gasoline rose 3.8 cents, to $ 1.897 a gallon; heating oil fell 0.3 cent, to $ 1.666 a gallon; and natural gas declined 6.4 cents, to $ 2.854 per 1,000 cubic feet.
United States government bond prices didn’t move much. The yield on the 10-year Treasury note held steady at 2.36 percent.
Precious and industrial metals futures closed mostly lower. Gold lost $ 3.40, to $ 1,143.80 an ounce; silver fell 6 cents, to $ 14.96 an ounce; and copper was little changed at $ 2.52 a pound.
stock market – Bing News