U.S. stocks advanced, after the Standard & Poor’s 500 Index posted a third weekly gain, as investors watched corporate results and speculated the economy is strong enough to withstand a global slowdown.
Dean Foods Co. rallied 14 percent after reporting profit that topped forecasts. Toll Brothers Inc. climbed 3.6 percent to lead homebuilders higher after saying it expects to report sales that beat analysts’ estimates. Time Warner Cable Inc. and Comcast Corp. dropped at least 4.2 percent after President Barack Obama called for rules protecting an open Internet. Dendreon Corp. sank 76 percent after the maker of a prostate-cancer drug filed for bankruptcy.
The S&P 500 rose 0.2 percent to 2,036.33 at 1:44 p.m. in New York, extending an all-time high. The Dow Jones Industrial Average climbed 20.56 points, or 0.1 percent, to 17,594.49, poised for a record close. Trading in S&P 500 stocks was 19 percent above the 30-day average at this time of day.
“The numbers in the third quarter showed a steady economy, we continue to have oil below $80, consumers feeling confident, low interest rates, and that’s a combination that works well for stocks,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “Central banks have also been quite accommodative in what they’ve been saying and it seems to be working.”
Source: Bloomberg | Oliver Renick