US stocks enjoyed a late afternoon rally and closed higher on Thursday as an upturn in oil prices and a rally in Apple and Boeing shares helped offset some disappointing earnings and lingering questions over US monetary policy.
The S&P 500 had fallen as much as 0.6 percent earlier, led by energy stocks, which then reversed direction along with crude prices.
While the afternoon rise in crude was not huge, it was enough to cheer up the market after two weak days, said Randy Frederick, managing director at Charles Schwab in Austin.
The market has been advancing and retreating within a range of 200 to 300 points for some time as traders grapple with earnings reports, a strong dollar and weak oil prices and uncertainty about when US interest rates will rise, said Dennis Dick, head of markets structure at Bright Trading LLC.
Harman International shares rose 23.8 percent, making it the biggest percentage gainer in the S&P after it beat profit and revenue expectations.
Coach Inc shares rose 6.8 percent after the handbag maker posted a better-than-expected quarterly profit. Dow component McDonald’s added 5 percent after announcing its CEO will retire.
Shares in Chinese internet giant Alibaba Group fell 8.8 percent after revenue missed expectations and raised questions about China’s economy. Qualcomm fell 10.3 percent after trimming its 2015 outlook.
The Dow Jones industrial average rose 225.48 points, or 1.31 percent, to 17,416.85, the S&P 500 gained 19.09 points, or 0.95 percent, to 2,021.25 and the Nasdaq Composite added 45.41 points, or 0.98 percent, to 4,683.41.
Earlier, weak results hit European shares, with Royal Dutch Shell weighing on the market after it missed earnings expectations. The oil major, which closed down 4.3 percent, said it would cut spending by $15 billion over three years due to slumping crude prices.
German bond yields initially fell as worries over Greece’s new anti-bailout government buoyed demand for top-rated assets, but the yield on US Treasuries rose after surprisingly strong weekly data on American jobless claims bolstered optimism.
The FTSEurofirst 300 index of top European shares closed down 0.12 percent at 1,473.19 points.
Greece endured a fourth day of market jitters after Sunday’s election with its newly installed government at loggerheads with international creditors as it begins to roll back austerity measures imposed in its bailout deal.
Yields on German 10-year bund, the euro zone benchmark, fell in early trade but closed slightly higher at 0.357 percent.
Yields on US 10-year government bonds rose to 1.7597 percent, with the price falling 9/32.
The 10-year British gilt yield dropped below 1.4 percent for the first time, breaking a record that had held even during the depths of the euro zone debt crisis in July 2012.
Gilt yields fell on the US Federal Reserve’s promise to be patient before it raises interest rates and on uncertainty about Greece’s new government.
Meanwhile, Japan’s Nikkei average posted the biggest one-day drop in two weeks today, hit by dismal earnings from the likes of Komatsu Ltd and signs the US Federal Reserve is on course to raise rates this year despite a shaky global outlook.
The Nikkei fell 1.1 percent to 17,606.22, the biggest one-day percentage drop since January 16. The broader Topix fell 1.1 percent to 1,413.58 while the JPX-Nikkei Index 400 shed 1.2 percent to 12,820.95.
The Federal Reserve signalled it remains firmly on track with plans to raise interest rates this year despite a deteriorating global outlook.
Construction equipment makers Komatsu tumbled 8.5 percent and Hitachi Construction Machinery dived 11 percent after reporting poor earnings.
Source: Buenos Aires Herald