NEW YORK (AP) — Stocks climbed on Thursday as investors responded to some positive earnings surprises. Financial stocks were boosted by a strong third-quarter earnings report from Citigroup. Hospital shares slumped after HCA said its earnings would fall short of projections.
KEEPING SCORE: The Standard & Poor’s 500 index rose 12 points, or 0.6 percent, to 2,007 as of 11:14 a.m. Eastern time. The Dow Jones industrial average climbed 91 points, or 0.6 percent, to 17,017. The Nasdaq composite rose 43 points, or 0.9 percent, to 4,826.
FED FOCUS: The Fed is back in focus as the main driver in financial markets. Though policymakers opted against raising interest rates in September following signs of weakness in China’s economy, most traders thought a December increase was likely. After a run of reports that are showing some weakness in the economy, many investors are now thinking the Fed will hold its benchmark lending rate close to zero for the rest of this year.
EARNINGS WATCH: Investors are also focusing on third-quarter earnings. Citigroup climbed $1.08, or 2 percent, to $51.72 after it reported that its earnings jumped in the third quarter as the bank continued to cut expenses and clean up its books in the wake of the financial crisis.
Netflix slumped $8.97, or 8.1 percent, to $101.24 after it reported late Wednesday that it is hooking fewer U.S. viewers than it hoped. Hospital shares dropped after HCA said that its earnings would likely fall short of analysts’ expectations.
COOLING IPO MARKET: First Data, an electronic payment company based in Atlanta, raised $2.6 billion in an initial public offering. That made it the largest U.S. listed IPO since Paramount Group raised $2.6 billion in November last year, according to data provider Dealogic. The stock priced at $16 and edged up 9 cents, or 0.6 percent, in its first day of trading.
EUROPE’S DAY: Germany’s DAX rose 1.5 percent. Britain’s FTSE 100 advanced 1.2 percent and the French CAC-40 was 1.4 percent higher.
ASIA’S DAY: Japan’s Nikkei 225 rose 1.2 percent while Hong Kong’s Hang Seng index jumped 2 percent. The South Korean Kospi added 1.2 percent. The Shanghai Composite Index was up 2.3 percent.
BONDS AND CURRENCIES: Bonds edged lower, pushing the yield on the 10-year note up to 2.01 percent from 1.98 percent on Wednesday. The euro fell to $1.1374 while the dollar edged down to 118.57 yen.
ENERGY: The price of benchmark U.S. crude fell $1.01 to $45.64 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, dropped 76 cents to $48.91 a barrel in London.
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