Major US stock indices closed in positive territory

Major US stocks rose moderately as strong quarterly results from companies such as Netflix (NFLX) and Morgan Stanley (MS) encouraged investors. The mood was also supported by reports that the UK and the EU reached a preliminary agreement.

Netflix (NFLX) reported quarterly earnings of $ 1.09 per share, compared with an average analyst estimate of $ 1.05 per share. Revenues generally coincided with the market forecast. The company also reported that during the quarter the number of its subscribers increased by 6.77 million (+ 12% yoy), but warned that increased competition could have a negative impact on the growth rate of the number of subscribers in the last quarter of this year. NFLX shares jumped nearly 3%.

Morgan Stanley (MS) reported third-quarter earnings of $ 1.27 per share, $ 0.15 higher than the market average. The company's revenue also exceeded analysts' forecasts. MS CEO James Gorman said the quarter was strong despite the traditional decline in summer activity and volatile markets. MS shares about 2%.

However, IBM (IBM) reporting was a disappointment for the market. The company showed adjusted earnings of $ 2.68 per share, which was $ 0.02 higher than analysts. Nevertheless, the company's revenue was below the average forecast of analysts and showed a year-on-year decline for the fifth quarter in a row. IBM shares fell 5.4%.

Market participants also drew attention to several important macroeconomic reports. A Department of Commerce report showed US housing construction fell from more than a 12-year high in September, but single-family home construction rose for the fourth consecutive month. This suggests that the housing market is still supported by lower mortgage rates even in the face of a slowing economy. According to the report, US housing construction fell 9.4% to a seasonally adjusted annual rate of 1.256 million units last month, as construction in the unstable segment of multi-apartment buildings declined. At the same time, building permits fell 2.7% to 1.387 million in September.

Meanwhile, the US Department of Labor said that the number of applications for state unemployment benefits increased by only 4,000 to 214,000, seasonally adjusted for the week ending October 12. This suggests that the labor market continues to decline, despite the slowdown in employment and economic growth. Data for the previous week were unchanged. Economists predicted an increase in the number of applications by 215,000 over the past week.

Most DOW components completed trading in positive territory (20 out of 30). The biggest gainers were UnitedHealth Group Incorporated (UNH; + 2.84%). Outsiders were IBM shares (IBM; -5.39%).

All S&P sectors recorded an increase. The health sector grew the most (+ 1.0%)

At the time of closing:

Dow 27,026.16 +24.18 +0.09%

S&P 500 2,997.95 +8.26 +0.28%

Nasdaq 100 8,156.85 +32.67 +0.40%