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U.S. stocks trading higher on company earnings

A Wall Street sign is mounted near the

A Wall Street sign is mounted near the flag-draped facade of the New York Stock Exchange in Manhattan on May 11, 2007. Photo Credit: AP / Richard Drew

Investors welcomed the latest financial results from large U.S. companies Friday and sent stocks higher in midday trading. The market was on course to recover after slumping a day earlier.

KEEPING SCORE: The Dow Jones industrial average rose 97 points, or 0.6 percent, to 17,074 as of 12:16 p.m. on Wall Street. The Standard & Poor's 500 index rose 14 points, or 0.8 percent, to 1,972. The Nasdaq composite gained 50 points, or 1.2 percent, to 4,413.

GLOBAL CONCERNS: Markets were recovering after stumbling Thursday after the downing of a Malaysia Airlines jetliner in Ukraine and Israel's launch of a ground offensive into Gaza stoked geopolitical uncertainty. The S&P 500 index sank 1.2 percent, its biggest one-day drop since April. All three major stock indexes ended lower for the first time in a week, but remained near record highs and positive for the year.

THE QUOTE: "Clearly the equity market remains remarkably resilient," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "At present the market is looking through the geopolitical concerns, in part because earnings generally have been pretty favorable."

GOOGLE IT: The Internet giant reported higher quarterly earnings and revenue late Thursday. Google's revenue rose 22 percent even as advertising rates continued to drop. Although Google still makes most of its money from Internet searches, the company is generating more revenue from other sources such as YouTube and its "Play" store that sells applications for devices running its Android software. Google's stock added $17.67, or 3 percent, to $598.49.

SWEET RESULTS: Honeywell International added $1.66, or 1.7 percent, to $96.83 after reporting that its income rose sharply in the latest quarter and beat investors' forecasts.

COMFORTING REPORT: Knoll jumped 7 percent after the furniture and accessories company reported a boost in second-quarter profit and revenue, exceeding Wall Street expectations. The stock added $1.16 to $18.13.

BEATING THE STREET: Semiconductor company Skyworks Solutions surged 14.8 percent as investors cheered its better-than-expected third-quarter earnings and profit outlook. The stock rose $7.01 to $53.36.

TAKING OFF: Several airline companies rebounded in early trading Friday after tumbling a day earlier following the news of the downed Malaysia Airlines airliner. American Airlines Group rose $1.01, or 2.4 percent, to $42.71, while Delta Air Lines added 78 cents, or 2.1 percent, to $37.35. United Continental gained 79 cents, or 1.8 percent, to $44.14. Southwest Airlines rose 30 cents, or 1.1 percent, to $27.81.

SECTOR WATCH: The 10 sectors in the S&P 500 rose, led by health care. The sector is up 7.3 percent this year. FLIR Systems notched the biggest gain among the 500 companies in the index, rising $1.29, or 4 percent, to $33.81. NVIDIA fell the most, shedding 72 cents, or 3.7 percent, to $18.58.

CHIPPED: Advanced Micro Devices sank after the chipmaker issued a revenue outlook for the current quarter that fell short of Wall Street's expectations. The company reported a narrower loss in its second quarter late Thursday. The stock fell 83 cents, or 18.1 percent, to $3.75.

EUROPE: Major European stock markets were mixed. Germany's DAX slipped 0.3 percent while France's CAC-40 rose 0.4 percent. Britain's FTSE 100 was off 0.7 percent.

BONDS AND OIL: Bond prices fell. The yield on the 10-year Treasury note rose to 2.49 percent from 2.45 percent late Thursday. Benchmark U.S. crude oil fell 28 cents to $102.91 a barrel on the New York Mercantile Exchange.


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