Business News

NEW YORK, July 19, (APP/AFP) – Wall Street stocks jumped
to fresh records Wednesday on higher oil prices, better-than-expected housing data and mostly solid earnings reports.
All three major US stock indices finished at new records, with the Dow
Jones Industrial Average rising 0.3 percent to 21,640.75, edging past a prior
record set earlier this month by three points.
The S&P 500 gained 0.5 percent to end at 2,473.83, while the tech-rich
Nasdaq advanced 0.6 percent to 6,385.04. It was the second straight day of new
records for those indexes.
Investors shrugged off worries about Washington, where President Donald
Trump’s agenda has languished amid opposition to the health care reform. Trump
on Wednesday urged Republican Senators to revive the bill, despite the fact it
failed to garner enough support within his own party.
But earnings growth among companies in the S&P 500 has thus far been “much
better” than expected, said Art Hogan, chief market strategist at Wunderlich
Securities.
“That is helping the stock market and is the focus this week,” Hogan said.
Of the companies reporting Wednesday, Morgan Stanley was a standout, rising
3.3 percent after reporting an 11.4 percent rise in second-quarter profits to
$1.6 billion.
Other factors that helped boost stocks included better-than-expected
housing data and a bullish US oil inventory report that supported oil prices
and boosted shares of petroleum-linked companies. Apache rose 5.0 percent,
Halliburton 3.6 percent and ConocoPhillips 1.4 percent.
But IBM sank 4.2 percent after suffering its 21st straight quarter of
declining revenue as second-quarter net income dipped seven percent to $2.3
billion.
United Continental plummeted 5.9 percent despite scoring a 39 percent rise
in second-quarter profit to $818 million. Analysts cited disappointment with
aspects of its third-quarter forecast.
Vertex Pharmaceuticals surged 20.9 percent after releasing positive
clinical data for its medical treatment regimes for cystic fibrosis.
Scripps Networks Interactive, owner of the Food Network, climbed 14.7
percent on reports it held talks with Discovery Communications and Viacom on a potential takeover. Discovery gained 4.3 percent and Viacom won 2.6 percent.