A late-day surge left stocks with modest advances Thursday as a jump in the price of oil lifted energy companies and offset weakness in bank shares.
NEW YORK (AP) — A late-day surge left stocks with modest advances Thursday as a jump in the price of oil lifted energy companies and offset weakness in bank shares.
The gains came a day after strong profit reports from JPMorgan Chase & Co. and Intel Corp. vaulted the Dow Jones industrials above the 10,000 level for the first time in a year. The Dow tacked on 47 points.
The rise in energy after a big drop in gas supplies helped buffer the losses in financials, which lost ground after earnings from Goldman Sachs Group Inc. and Citigroup Inc. disappointed.
JPMorgan helped set a high bar for bank earnings, and investors didn’t like as much what they heard from rivals Goldman and Citi. Goldman’s net income of $3.19 billion beat expectations on strong trading profits, but its stock fell on disappointment over a sharp fall in investment banking revenues. Citigroup reported a slightly smaller loss per share than expected but said credit losses remain high.
Investors drew some comfort from government reports that new unemployment claims fell more than expected last week.
“Things are going in the right direction but the fundamental economic improvement is slow,” said Robert Dye, senior economist at PNC Financial Services Group.
The day’s moves were modest but that wasn’t unexpected after such a strong rally. Major stock indexes have rocketed off of 12-year lows in March but remain well below the highs of two years ago.
Seeing the Dow Jones industrials at five digits for the first time in a year could spook some traders who worry that stocks have been too quick to rebound. Others say that skepticism is a signal that the market will continue to defy expectations and advance.
Analysts expect corporate earnings reports will shape trading for the next several weeks. Google Inc., IBM Corp. and chip maker Advanced Micro Devices all reported better-than-expected results after the closing bell.
According to preliminary calculations, the Dow rose 47.08, or 0.5 percent, to 10,062.94, its highest close since Oct. 3 last year.
The broader Standard & Poor’s 500 index rose 4.54, or 0.4 percent, to 1,096.56. The Nasdaq composite index rose 1.06, or 0.1 percent, to 2,173.29.
Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to 1.4 billion shares, in line with Wednesday.
Since March, the Dow has jumped 53.7 percent, while the S&P 500 index is up 62.1 percent and the Nasdaq is up 71.3 percent.
Crude oil rose $2.40 to settle at $77.58 a barrel on the New York Mercantile Exchange after refiners that make gasoline and other fuels cut back on production last week, according to a government report.
The Labor Department said the number of newly laid-off workers filing claims for unemployment insurance fell to its lowest level since January. First-time claims for jobless benefits dropped to 514,000, better than the 525,000 economists were expecting, according to Thomson Reuters.
Investors scoured earnings reports for hints about revenue. Analysts want to see companies grow their profits through sales and not just cost-cutting. Of the companies in the S&P 500 index that have posted results for the July-September quarter, 62 percent have reported revenue that topped analysts expectations, according to S&P.
Financials have led the market’s seven-month rally after getting pounded in late 2008 and early this year so some modest retreats aren’t alarming traders.
Energy stocks rose as oil jumped. Oil refiner Tesoro Corp. rose $1.25, or 8.6 percent, to $15.83.
Bond prices slipped as the economic reports signaled improvement in the economy. The yield on the benchmark 10-year Treasury note rose to 3.47 percent from 3.42 percent late Wednesday.
The Russell 2000 index of smaller companies fell 0.60, or 0.1 percent, to 623.34.
Overseas, Britain’s FTSE 100 fell 0.6 percent, Germany’s DAX index lost 0.4 percent, and France’s CAC-40 rose less than 0.1 percent. Japan’s Nikkei stock average jumped 1.8 percent.