Stocks edge higher in morning trading; GE jumps on earnings

Wholesale gasoline rose 2.1 cents to close at 1.328 dollars a gallon, while heating oil rose 1 cent to close at 1.497 dollars a gallon.

USA stocks closed modestly higher Friday, giving the market its third straight week of gains.

The focus on quarterly results is intensifying, with earnings at S&P 500 members projected to have fallen 6.7 per cent in the last quarter. Health care and consumer staples stocks each gained about 1 percent.

General Electric rose to a seven-year high amid better-than-estimated quarterly profits, leading an advance in U.S. stocks as the Standard & Poor’s 500 Index posted its longest weekly winning streak since May. The S&P 500 is up 5.4 percent this month, and has rallied 8.4 percent from the low during an August selloff.

THE QUOTE: “People just want to get a few comfort that the recovery in the developed markets is still intact”, said David Lefkowitz, an executive director and equity strategist at UBS. “The key thing though is going to be how earnings shape out over the next 10 days or so and that’s going to be critical for the next direction of the market”. The report came a day after Mattel reported disappointing third-quarter results. Mattel gained $1.39 to $23.92. The stock added 43 cents, or 1.6 percent, to $28.47.

CRIMPED CASINO: Wynn Resorts slumped 3.3 percent after the casino operator said new gambling regulations in Macau continued to hurt its business.

Valeant Pharma’s U.S.-listed shares fell 7.2 percent to $164.50 after the Canadian drugmaker said it had been subpoenaed by USA prosecutors over its drug pricing policies.

On the other hand, shares of Quanta Services (PWR) showed a steep drop after the contracting services provider lowered its third quarter guidance. Schlumberger slid 4.7 percent after the company announced job cuts.

Also in the healthcare sector, insurer UnitedHealth (UNH.N) slipped 1.6 percent to $120.17 even though it reported a slightly better-than-expected profit in the third quarter.

S&P 500 companies are expected to report a 4 per cent fall in third-quarter profit, the biggest decline in six years, according to Thomson Reuters data.

Citigroup’s 4.4% climb paced best gain in the banking sector in more than a month.

USA industrial production in September shrank for the second month in a row, but was in line with expectations. The decline suggests that a strong dollar, weak overseas economies, and cautious USA consumers are holding back factory output.

Youku Tudou jumped 22.2 percent to $24.96 after Alibaba offered to buy the video-streaming company for $26.60 per American Depository Share. But South Korea’s Kospi lost 0.3 percent to 2,026.75. The Shanghai Composite in mainland China was up 1.6%.

Equities added to gains late in the session, and eight of the S&P 500 sectors registered increases of more than 1 per cent.

ENERGY: Benchmark US crude added 80 cents to $47.20 in New York. Brent crude, used to price worldwide oils, rose 14 cents to $49.88. The yield on the 10-year Treasury note held steady at 2.02 percent.