NEW YORK (AP) – U.S. stocks rose in early trading Monday, extending a rebound from Friday, as investors focused on corporate news instead of geopolitical developments.
An easing of tensions in Ukraine combined with subdued Chinese inflation figures to help stock markets around the world enjoy a strong start to the week. For weeks, markets have been roiled by a raft of geopolitical concerns, more often than not centered on the crisis in Ukraine.
KEEPING SCORE: The Standard & Poor’s 500 index rose six points, or 0.3 percent, to 1,938.34 in the first half-hour of trading. The Dow Jones industrial average climbed 40 points, or 0.3 percent, to 16,594 percent. The Nasdaq composite climbed 17 points, or 0.4 percent, to 4,387.
KINDRED SPIRITS: Kinder Morgan surged $3.2, or 8.9 percent, to $39.38. The company said Sunday that a group of oil and gas pipeline and storage companies that it controls will combine to create the 4th biggest U.S. energy company by market value. Currently, the companies trade separately.
PRICELINE EARNINGS: Priceline rose $33.44, or 2.6 percent, to $1,315 after the company reported second-quarter earnings that beat the expectations of Wall Street analysts. The company said the summer travel season got off to a good start for the online booking company.
GEOPOLITICS: After taking a jab at the West with last week’s ban on food imports, Russia called an end to military exercises near Ukraine and withdrew troops to their bases. Though fears of a Russian invasion have eased, several geopolitical concerns remain for investors. In Iraq, U.S. warplanes attacked Islamic State militants near the northern city of Irbil, capital of the Kurdish region, in hopes of limiting their advance and keeping them away from oil fields.
EUROPEAN STOCKS: Germany’s DAX spiked 1.7 percent to 9,161 while France’s CAC-40 added 1 percent to 4,189. Britain’s FTSE 100 advanced 0.9 percent to 6,625.
CHINESE INFLATION: Investors were encouraged by news that China’s inflation rate in July came in at 2.3 percent, well below the official target for the year of 3.5 percent. That gives the central bank room to ease access to credit if needed to shore up economic growth, which was 7.5 percent in the latest quarter. That would lower the cost of financing for stock trading, helping to support markets.
BONDS AND COMMODITIES: U.S. government bond prices were little changed. The yield on the 10-year Treasury note was unchanged from late Friday at 2.42 percent. The price of oil climbed 21 cents, or 0.2 percent, to $97.88 a barrel. Gold fell $2.40, or 0.2 percent, to $1,308.70. Silver was little changed at $19.97 an ounce.
CURRENCIES: In currency trading the euro fell 0.2 percent to $1.3383 while the dollar rose 0.1 percent against the Japanese yen to 102.12 yen.