Stocks edge higher amid earnings and deals
NEW YORK (AP) — Stock futures edged higher as more companies reported first quarter earnings. The stock market also got a lift from deal news. Netflix and Botox maker Allergan rose sharply.
KEEPING SCORE: The Standard & Poor's 500 index rose seven points, or 0.4 percent, to 1,879 as of 10:23 a.m. Eastern time. The Dow Jones industrial average gained 58 points, or 0.4 percent, to 16,507. The Nasdaq composite rose 29 points, or 0.7 percent, to 4,149.
BOTOX ACQUISITION: Allergan shares jumped $22.13, or 15.5 percent, to $164.07 after Valeant Pharmaceuticals said that it had teamed up with activist investor Bill Ackman to make a bid for the Botox maker.
STREAK OF GAINS: The S&P 500 closed higher on Monday for a fifth straight day, its longest streak of gains since October. The index has staged a comeback after slumping at the start of the month as investors sold high-flying tech and biotechnology stocks. If the index closes higher Tuesday it will be the longest streak of gains since September.
UNDERWOOD EFFECT: Netflix rose $20.41, or 5.9 percent, to $369.25 in premarket trading after the online video streaming service said its first-quarter earnings soared. Another season of the popular political drama "House of Cards" helped attract an additional 2.25 million subscribers.
HOG HEAVEN: Harley-Davidson jumped $5.12, or 6 percent, to $72.66 after the company reported that its first-quarter earnings rose almost 19 percent from the same period a year ago. The Milwaukee company said motorcycle sales grew 5.8 percent worldwide and efficiency efforts took hold during the quarter. Its earnings topped Wall Street estimates.
HOME SALES: Sales of existing U.S. homes slipped in March to their lowest level since July 2012 as rising prices and a tight supply of available homes discouraged many would-be buyers. The National Association of Realtors says sales edged down 0.2 percent to a seasonally adjusted annual rate of 4.59 million. It was the seventh drop in the past eight months, but the decline was less than economists had forecast.
TREASURIES AND COMMODITIES: Bond prices fell. The yield on the 10-year note climbed to 2.74 percent from 2.72 percent on Monday. The price of oil fell $1.50, or 1.4 percent, to $102.15 a barrel.
