Business

US stocks jump on strong Caterpillar earnings

US stocks today rose decisively in early trade following a batch of mostly solid earnings reports from Dow members Caterpillar, 3M and others.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 16,648.63, up 187.31 points (1.14%).

The broad-based S&P 500 gained 17.88 (0.93%) to 1,944.99, while the tech-rich Nasdaq Composite Index advanced 46.08 (1.05%) to 4,428.93.

Industrial heavyweight Caterpillar jumped 4.4% after third-quarter net income rose eight percent to US$1.02 billion as company cost-cutting measures and restructuring offset sluggish economic conditions. Earnings of $1.US63 per share blew by the consensus estimate of US$1.36.

3M's profits gained six percent to US$1.3 billion as the industrial and consumer materials company notched earnings per share of US$1.98, two cents above analyst estimates. Shares soared 5.3%.

General Motors gained 1.3% as third-quarter earnings per share of 97 cents bested expectations by two cents. Net income fell 14.3% to US$1.47 billion on weak performance in Europe and South America.

Dow member AT&T fell 2.4% after reporting a 21% drop in third-quarter earnings to US$3 billion in results that fell short of analyst expectations.

American Airlines gained 1.1% higher on third-quarter earnings of US$1.66 per share, three cents above estimates. United Airlines bested expectations by seven cents at US$2.75 per share, but shares fell 2.5%.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.26% from 2.23% yesterday, while the 30-year advanced to 3.03% from 3.00%. Bond prices and yields move inversely. – AFP, October 23, 2014.

Comments