FILE - In this Jan. 10, 2020, file photo trader Gregory Rowe works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Friday, Jan. 17 (AP Photo/Richard Drew, File)

Banks, communications companies lead stocks in early trading

January 17, 2020 - 10:48 am

NEW YORK (AP) — U.S. stocks edged higher in early trading Friday as solid earnings from banks helped extend momentum from the previous day's rally.

State Street and Citizens Financial were among the latest banks to report encouraging results in a week of solid reports from larger financial institutions. Investors were also digesting the latest government housing data which showed a December surge in new home construction.

The latest bright sign on the economy follows Thursday’s solid retail sales report, which revealed consumers are still spending at a healthy pace.

Technology stocks also made big gains in the early going. Qualcomm rose 3.9%.

Communications companies rose. Google parent company Alphabet climbed again, a day after becoming the latest tech giant to cross the $1 trillion valuation mark, joining Apple and Microsoft.

Comcast rose 1.2% after NBCUniversal launched a new streaming service that will have a free component.

Bond prices fell, pushing yields higher. The yield on the 10-year Treasury rose to 1.84% from 1.8% late Thursday.

Safe-play sectors, including utilities and real estate companies, lagged the market.

Stocks are still trading around their latest record highs reached a day earlier and are on track for solid weekly gains. The two days of good economic news come on the heels of the U.S. and China signing an initial trade deal. Progress on trade has eased fears on Wall Street about the potential for the dispute to escalate further.

KEEPING SCORE: The S&P 500 index rose 0.2% as of 10:30 a.m. Eastern time. The Dow Jones Industrial Average rose 74 points, or 0.3%, to 29,348. The Nasdaq rose 0.2%. The Russell 2000 index of smaller company stocks was flat. Markets in Europe and Asia rose.

HEAVY ANCHOR: Gap fell 1.3% after the retailer cancelled plans to spin off its Old Navy brand, saying the move would be too costly. It also said the president and CEO of the Gap brand, Neil Fiske, is stepping down.

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