NEW YORK (AP) – U.S. stocks are rebounding Wednesday morning as strong results from Morgan Stanley and rising bond yields send banks and other financial companies higher. Industrial and basic materials companies are also gaining ground.
KEEPING SCORE: The Standard & Poor’s 500 index gained 9 points, or 0.4 percent, to 2,351 as of 10:05 a.m. Eastern time. The Dow Jones industrial average added just 1 point to 20,524 as a drop in IBM weighed on the blue-chip index. The Nasdaq composite jumped 35 points, or 0.6 percent, to 5,884. The Russell 2000 index of small-company stocks climbed 10 points, or 0.8 percent, to 1,372 after a late gain a day earlier.
Stocks mostly skidded Tuesday after weak earnings from a few key companies, especially health care products giant Johnson & Johnson and Goldman Sachs. Overall, analysts still expect good first-quarter results from publicly-traded companies, and that was mostly the case Wednesday morning. The price of gold, which has climbed steadily in recent weeks, fell almost 1 percent.
BANKS COME BACK: Wealth management and investment banking firm Morgan Stanley said its profit jumped in the first quarter as its stock and bond trading businesses made about twice as much money as they did one year ago. That continued what’s mostly been a strong first quarter for banks and other financial companies. Despite disappointing results from Goldman Sachs Tuesday morning, most financial firms have said their trading units did well in the first quarter, and they’re also benefiting from higher interest rates.
Morgan Stanley gained $1.20, or 2.9 percent, to $42.42. Elsewhere, Charles Schwab rose 71 cents, or 1.9 percent, to $38.62 and Prudential climbed $1.42, or 1.4 percent, to $104.99. Bank of America added 42 cents, or 1.8 percent, to $23.13.