Earnings and corporate deals lift US stocks

Published on NewsOK Modified: April 22, 2014 at 4:09 pm •  Published: April 22, 2014
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The consumer discretionary sector had the second-biggest gain Tuesday after some good earnings reports.

Harley-Davidson jumped $4.33, or 6.4 percent, to $71.87 after reporting that its first-quarter earnings rose nearly 19 percent. Motorcycle sales grew 5.8 percent worldwide and efficiency efforts took hold.

Netflix climbed $24.41, or 7 percent, to $372.90 after the online video streaming service said late Monday that its first-quarter earnings soared. Another season of the popular political drama "House of Cards" helped attract an additional 2.25 million subscribers.

Investors even found something to like in a weak report on 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.

While it was the seventh drop in the past eight months, the decline was less than economists had forecast.

In government bond trading, prices were little changed. The yield on the 10-year Treasury note was unchanged at 2.72 percent from late Monday.

Among other stocks making big moves:

— Facebook rose $1.79, or 2.9 percent, to $63.03. Analysts at Credit Suisse raised their target price for the stock because they believe that the social media company will be able to boost its revenue with new services.

— Pentair slumped $5.53, or 6.9 percent, to $74.95 after the flow-control company posted an unexpected decline in revenue. Pentair's revenue fell 3 percent and revenue at its largest division, valves and controls, dropped 9 percent compared to last year. Pentair said weaker sales to the energy industry were the main reason for that decline.

— Omnicom fell $1.62, or 2.3 percent, to $69.87 after the advertising company's CEO said that the timing of a proposed $35 billion merger with France's Publicis Groupe SA remains unclear nine months after the deal was announced.


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