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Dow Advances 174, Nasdaq Gains 54

For more than a week investors have been poring through company earnings for signs the economy is growing at a faster pace, and on Thursday they felt they found it. Railroad operator CSX gave transportation companies like railroads and airlines a big boost while Sherwin-Williams raised its annual projections and helped basic materials makers go higher.
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The Associated Press,

NEW YORK (AP) -- U.S. stocks climbed Thursday as industrial companies, banks, technology and materials firms and energy companies all rallied. A strong day of corporate results left investors feeling better about the economy.

For more than a week investors have been poring through company earnings for signs the economy is growing at a faster pace, and on Thursday they felt they found it. Railroad operator CSX gave transportation companies like railroads and airlines a big boost while Sherwin-Williams raised its annual projections and helped basic materials makers go higher.

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It's still early in this round of earnings reports and a few high-profile companies have disappointed Wall Street this week, so stocks have wobbled recently. But for the most part experts and investors are encouraged by what they're hearing. They say companies feel good about the economy and expect stronger growth and bigger profits.

"The major takeaway so far to earnings season is the CEOs are still saying we're poised for growth," said J.J. Kinahan, chief market strategist at TD Ameritrade. "Last quarter was sort of the first time we heard this theme."

The Standard & Poor's 500 index advanced 17.67 points, or 0.8 percent, to 2,355.84. The Dow Jones industrial average rose 174.22 points, or 0.9 percent, to 20,578.81.

The Nasdaq composite gained 53.74 points, or 0.9 percent, to an all-time high of 5,916.78. The Russell 2000 index of smaller-company stocks added 17.02 points, or 1.2 percent, to 1,384.15.

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American Express had a solid first quarter as its credit card members spent more and kept bigger balances on their cards. The stock gained $4.47, or 5.9 percent, to $80.02. SLM, the parent of the student lender Sallie Mae, reported much stronger revenue than expected and its stock climbed $1.17, or 10.1 percent, to $12.70. Citizens Financial rose $1.05, or 3.1 percent, to $35.27 after its report.

"The banks are the shining star" so far, Kinahan said, although he speculated that Goldman Sachs had a down quarter because it's lost several top executives to the Trump administration.

Railroad company CSX announced a bigger profit and more revenue than Wall Street expected in the first quarter. CSX also said restructuring and spending cuts will increase its profit by about 25 percent this year. The company is cutting jobs and reorganizing after it hired Hunter Harrison, former head of Canadian Pacific, as its new CEO last month. The company also said it will buy back more stock and raise its dividend. CSX stock jumped $2.65, or 5.6 percent, to $49.58.

Railroads and transportation companies like trucking companies and airlines rose. Industrial companies were among the top performers Thursday.

Sherwin-Williams raised its profit guidance for the year as paint sales jumped and prices increased. The stock added $12.48, or 4 percent, to $324.02. That helped basic materials companies. So did steel maker Nucor, which rose $2.73, or 4.7 percent, to $60.35 after its first-quarter results were stronger than expected.

Verizon dipped 53 cents, or 1.1 percent, to $48.41 as it lost wireless cellphone subscribers and its profit dropped 20 percent. That helped push other telecom companies lower.

Other stocks that pay big dividends also fell. Utilities, companies that make and sell household goods, and real estate investment trusts also declined as bond yields rose. That made the stocks less appealing to investors seeking income.

Bond prices fell further. The yield on the 10-year Treasury note rose to 2.23 percent from 2.22 percent.

Equipment rental company United Rentals flopped after its sales fell far short of expectations. The company said rental rates are still somewhat weak, and its stock lost $6.21, or 5.2 percent, to $113.24.

Energy prices wobbled and finished lower. Benchmark U.S. crude slipped 17 cents to $50.27 a barrel in New York while Brent crude, the international standard, rose 6 cents to $52.99 a barrel. However energy companies climbed higher. They stumbled Wednesday as the price of U.S. crude sank 3.8 percent.

State and federal authorities sued Ocwen Financial and said the mortgage lender botched the handling of millions of accounts. The Consumer Financial Protection Bureau said Ocwen generated errors in borrowers' accounts, failed to credit payments, illegally foreclosed on homeowners, and charged borrowers for products without their consent.

Ocwen is one of the nation's largest non-bank mortgage lenders, focusing mostly on subprime and delinquent mortgages. Its stock plunged $2.91, or 53.9 percent, to $2.49 in heavy trading.

In other energy trading, wholesale gasoline rose 1 cent to $1.67 a gallon. Heating oil was flat at $1.58 a gallon. Natural gas fell 3 cents to $3.16 per 1,000 cubic feet.

Gold rose 40 cents to $1,283.80 an ounce. Silver lost 14 cents to $18.02 an ounce. Copper rose 1 cent to $2.54 a pound.

The dollar rose to 109.31 yen from 108.70 yen. The euro inched up to $1.0722 from $1.0721.

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Ratings

Overnights, adults 18-49 for April 27, 2017
  • 1.
    1.3/5
  • 2.
    1.2/5
  • 3.
    0.8/3
  • 4.
    0.6/2
  • 5.
    0.6/2
  • 6.
    0.4/1
Source: Nielsen

Reviews

  • Neal Justin

    Tina Fey will inevitably let down her legions of TV fans with a real stinker. But not yet. The comic maestro, whom Rolling Stone recently ranked as the third greatest player in Saturday Night Live history, is following 30 Rock and Unbreakable Kimmy Schmidt with NBC’s Great News, yet another fast-paced, perfectly absurd sitcom about a single woman trying to maintain a personal and professional life with Mary Richards-like spunk.

  • Jeanne Jakle

    Don’t go into the new round of Fargo expecting the grab-’em-by-the-throat shocks that opened previous seasons of TV’s chilliest crime anthology. The latest incarnation of the FX series from Noah Hawley takes its time worming into your mind and getting you hooked. Season three establishes its characters at a much more leisurely pace: the central quartet, the unscrupulous locals who surround them and the sinister interlopers who make these drab Minnesota lives more complicated and, eventually, scary as heck.

  • Daniel Fienberg

    In Brockmire, Hank Azaria's Funny or Die sportscaster works surprisingly well as a regular series lead on the new IFC show, costarring the excellent Amanda Peet. Over the course of the eight episodes, Brockmire moves through a trio of arcs, delivering underdog sports shenanigans, a relationship that makes more sense as it progresses and Brockmire's sad and probably doomed search for redemption. That's all propped up with enough low-brow jokes, raunchy baseball references and disreputable hijinks that the show never wallows. I reached the finale and was surprised at how much I wanted to see more from a character I initially thought couldn't sustain more than five minutes.

  • Maureen Ryan

    It’s appropriate that The Good Fight on CBS All Access has a slightly more jagged and splintered atmosphere than The Good Wife, the long-running CBS drama that starred Julianna Margulies. In the opening minutes of the first episode, Diane Lockhart (Christine Baranski), watches as Donald Trump is sworn in as the nation’s 45th president. Before the 50-minute pilot is over, the jarring changing of the guard in Washington is the least of her troubles. Baranski brings a heartbreaking rawness to her performance as Diane, who never got enough meaningful screen time on The Good Wife. Diane’s plight is thus personal but also metaphorical: She likens the collapse of every pillar of her supposedly solid and trustworthy world to a nightmare.

  • David Wiegand

    It’s hard to say which is more excessive in the new CBS crime thriller, Training Day: the action or the dialogue. But in either case, the series from Jerry Bruckheimer and Anthony Fuqua goes a long way toward waking up broadcast TV’s mid-season. There is plenty of action, enhanced by fast-paced editing, in the three episodes made available to critics. And there’s violence. But most of all, there is dialogue so rich and colorful, it almost evokes the stuff of guys like Raymond Chandler and Dashiell Hammett, or at least Sgt. Joe Friday. Training Day just may get away with murder on Thursday nights when the numbers are counted.

  • Hank Stuever

    Well, they only had to remake a jillion TV shows from yesteryear to finally get one exactly, perfectly right. Not only is Netflix’s reimagined One Day at a Time a joy to watch, it’s also the first time in many years that a multicamera sitcom (the kind filmed on a set with studio-audience laughter) has seemed so instinctively comfortable in its own skin. It doesn’t try to subvert or improve on the sitcom format; it simply exhibits faith that the sitcom genre can still work in a refreshing and relevant way.

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