US. stocks are ticking higher as they get pulled in opposite directions by competing waves of optimism and fear Friday. Several of the biggest U.S. banks said their profits during the summer were better than feared, which offered hope for an earning reporting season that may deliver the first growth in a year. But worries about the latest war in Gaza at the same time sent oil prices jumping and Treasury yields falling.
The Associated Press has the story:
Wall Street rises, hopes for stronger profits collide with war
Newslooks- NEW YORK (AP)
US. stocks are ticking higher as they get pulled in opposite directions by competing waves of optimism and fear Friday.
Several of the biggest U.S. banks said their profits during the summer were better than feared, which offered hope for an earning reporting season that may deliver the first growth in a year. But worries about the latest war in Gaza at the same time sent oil prices jumping and Treasury yields falling.
All the push and pull left the S&P 500 up 0.6% in early trading. The Dow Jones Industrial Average was up 290 points, or 0.9%, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.
Some of the strongest action was in the oil market, where a barrel of benchmark U.S. crude rose 3.3% to $85.64. Brent crude, the international standard, rose 3.5% to $89.00per barrel.
Israel’s military ordered the evacuation of northern Gaza ahead of an expected ground invasion against the ruling Hamas militant group, according to the United Nations, which warned that so many people fleeing at once could be calamitous.
While the region is not a major producer of oil, the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum.
Worries about the war also sent Treasury yields falling, which often happens when investors look for safer investments during times of stress. The yield on the 10-year Treasury fell to 4.61% from 4.70% late Thursday.
Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year.
Patrick Harker, president of the Philadelphia Fed, said again Friday that he believes “we are at the point where we can hold rates where they are.”
The two-year Treasury yield, which tends to move closely with expectations for Fed action, fell to 5.01% from 5.07% late Thursday.
Helping to support Wall Street were JPMorgan Chase, Citigroup and Wells Fargo, which all reported stronger profit for the summer quarter than analysts expected.
JPMorgan Chase rose 4.8% after its profit for the third quarter rose 35% from a year earlier. It benefited from a rise in interest rates, but its CEO Jamie Dimon also warned that “this may be the most dangerous time the world has seen in decades.”
Citigroup gained 3.8%, and Wells Fargo rose 4% after they also topped analysts’ expectations for profit during the summer quarter. Bank customers continue to borrow, even at higher interest rates, as consumers put more and more expenses on their credit cards.
UnitedHealth Group also beat Wall Street’s profit expectations, and its stock climbed 3.4%.
Dollar General jumped to one of the biggest gains in the S&P 500, up 8.4%. It said Todd Vasos will be returning as CEO.
In stock markets abroad, indexes were lower across Europe after falling more sharply in Asia.
Hong Kong’s benchmark dropped 2.3%, and stocks fell 0.6% in Shanghai as China’s economic recovery continues to falter. Stocks fell 0.6% in Shanghai and
South Korea’s Kospi lost 1%, after official data showed unemployment rose to 2.6% in September from a historic low of 2.4% in August.
