US stocks rally on upbeat earnings

New York, Oct 24 (IANS) US stocks traded higher on Monday as Wall Street digested a batch of generally positive earnings reports.

The Dow Jones Industrial Average rose 91.60 points, or 0.50 per cent, to 18,237.31, Xinhua news agency reported.

The S&P 500 gained 9.92 points, or 0.46 per cent, to 2,151.08. The Nasdaq Composite Index increased 45.56 points, or 0.87 per cent, to 5,302.96.

Shares of T-Mobile surged over 7 per cent around mid-day on Monday after the company posted better-than-expected quarterly results.

The US wireless carrier announced Monday net income of $366 million, or 42 cents per share, for the third quarter of 2016, compared with $138 million, or 15 cents a share during the same quarter last year.

The latest data from Thomson Reuters showed that the S&P 500 companies’ blended earnings in the third quarter of 2016 are expected to rise 1.1 per cent year on year, while the revenues are forecast to increase 2.5 per cent.

US economic data also came out positive. Adjusted for seasonal influences, the Markit Flash

US Manufacturing Purchasing Managers’ Index rebounded from a three-month low of 51.5 in September to 53.2 in October, beating market consensus of 51.2.

On Friday, US stocks closed mixed after wavering in a tight range, as investors digested remarks from the US Federal Reserve official amid corporate earnings reports.

–IANS

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