US stocks edge higher on earnings, gold dips2 min read . Updated: 21 Jul 2015, 01:35 AM IST
Dow Jones and Standard & Poor's 500 rise 0.2%; Nasdaq composite gains 0.4%
New York: US stocks drifted higher in late-afternoon trading Monday, getting a lift from encouraging corporate earnings news. Technology stocks were among the biggest gainers. Gold slumped to its lowest level in five years, pulling mining stocks lower.
The Dow Jones industrial average rose 34 points, or 0.2%, to 18,121 as of 3:03 p.m. Eastern Time. The Standard & Poor’s 500 index gained four points, or 0.2%, to 2,131. The Nasdaq composite climbed 19 points, or 0.4%, to 5,229.
“We’re focused on earnings and they’re coming in better," said Quincy Krosby, a market strategist at Prudential Financial. “Even though the estimates have been lowered, the companies beating are beating very nicely."
Seven of the 10 sectors in the S&P 500 moved higher, led by technology stocks. The sector is up 6% this year. Energy stocks fell the most, extending the sector’s losses for the year to 10.3%.
Shares in PayPal Holdings rose 6.8% as the payment service officially began trading on the Nasdaq stock exchange after separating from eBay. The stock gained $2.61 to $41. Shares in eBay gained 85 cents, or 3%, to $28.75.
Newmont Mining slid 11.7% as gold prices slumped. The stock lost $2.43 to $18.26.
Exelixis vaulted 50.4% on news that a key study on the company’s drug Cometriq produced positive data pointing to its potential as a kidney cancer treatment. The stock rose $1.97 to $5.88.
Shares in Hasbro surged 6.9% after the toymaker reported better-than-anticipated earnings. The stock was up $5.41 to $83.66.
Lennox International gained 8.9% after the maker of furnaces, air conditioners and other products reported better-than-expected second-quarter profit and revenue. The stock added $9.54 to $177.13.
DAX was up 0.5%, while France’s CAC-40 rose 0.4%. The FTSE 100 index of leading British shares was 0.2% higher. Fears over a Greek exit from the euro have abated, helping lift European indices. On Monday, Greek banks reopened for the first time in more than three weeks. The European Union sent Athens the short-term money it needs to pay off a 4.2 billion-euro ($4.6 billion) debt to the European Central Bank and clear arrears with the International Monetary Fund. Other hurdles remain before Greece secures its third bailout.
The Shanghai Composite Index gained 0.9%, while Sydney’s S&P/ASX 200 added 0.3%. Hong Kong’s Hang Seng was little changed at 25,404.81. Tokyo was closed for a holiday.
Benchmark US crude fell 74 cents to $50.15 a barrel in New York. Brent crude, used to price international oils, fell 45 cents to $56.65 in London.
Precious and industrial metals futures ended lower. Gold slumped $25.10 to $1,106.80 an ounce. Gold is trading at a five-year low as its appeal as a safe haven asset and a hedge against inflation have waned. Silver lost 8 cents to $14.75 an ounce. Copper fell two cents to $2.48 a pound.
US government bond prices fell. The yield on the 10-year Treasury note rose to 2.37% from 2.35% late Friday.