You are here: Home » Reuters » News
Business Standard

Wall Street scales record highs on earnings optimism, robust data

Reuters 

By Sruthi Shankar

(Reuters) - rose to record highs on Friday as fourth-quarter earnings season kicked off with solid from and and robust drove gains for consumer

, the biggest U. S. lender by assets, said the new would help future profits by not only reducing the amount it pays the but also by stimulating more business. The bank's shares rose more than 1 percent.

rose 3 percent after the world's largest reported profit that beat estimates as investors flooded into the relatively low-cost funds.

also gained from a rise in Treasury yields after underlying U. S. consumer prices for December posted their biggest gain in 11 months, signalling a pickup in inflation. [US/]

"There is optimism that earnings season is going to be relatively good and belief that the overall economy is continuing to get healthier," said Robert Pavlik, chief strategist at in

"Interest rates are moving up, but not to the extent that it is causing much concern. The CPI data that came in is a good level to be in an economy that seems to be expanding."

slipped 0.3 percent after it set aside $3.25 billion in the fourth quarter to cover legal expenses related to probes into its mortgage and sales practices.

Earnings for companies are expected to increase on an average by 12.1 percent in the quarter with profit for financial services companies likely to increase 13.2 percent, according to I/B/E/S.

At 12:47 p.m. ET (1747 GMT), the <.

DJI> was up 166.54 points, or 0.65 percent, at 25,741.27 and the <. SPX> was up 13.93 points, or 0.50 percent, at 2,781.49.

The <. IXIC> was up 42.49 points, or 0.59 percent, at 7,254.26.

The index <. SPLRCD> jumped 0.78 percent after an increase in showed households bought more goods, suggesting the economy exited 2017 with strong momentum.

rose 1.89 percent to breach $1,300 for the first time, while rose 1 percent and 0.6 percent.

Sales at soared 1.2 percent in December. "A lot of these companies like and are getting on with the of e-commerce," said Josh Jalinski, of

Among other stocks, fell 3.5 percent after the company started changing the way it filters posts and videos on Feed.

fell 1.61 percent after the chipmaker said its microprocessors are prone to both variants of the Spectre security flaw, days after saying its risk for one of them was "near zero".

Advancing issues outnumbered decliners on the NYSE by 1,474 to 1,376. On the Nasdaq, 1,808 issues rose and 1,069 fell.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 23:53 IST
RECOMMENDED FOR YOU