Stocks Opened Higher after Upbeat Earnings

U.S. stocks opened higher on Friday, as earnings beat estimates and investors speculated that central banks will support economic growth with more stimulus.The Dow Jones industrial average lately rose 173.65 points, or 1.08%, to 16,290.89. The S&P 500 gained 19.87 points, or 1.07%, to 1,882.63. The Nasdaq Composite added 45.20 points, or 1.07%, to 4,262.59.

Morgan Stanley reported third quarter earnings results that were stronger than what Wall Street analysts had expected.Morgan Stanley reported $8.9 billion in third quarter revenue, a nearly-$1 billion increase over both revenue reported for the year-ago quarter and the $7.98 billion Street consensus. Net income came in at $1.7 billion, nearly double the $889 million reported this time in 2013 and a figure that resulted in earnings of 84 cents per share, an 87% surge over earnings per share in the prior-year period.

General Electric Co reported a slightly higher-than-expected quarterly profit on Friday, as cost cuts that helped boost margins across its industrial businesses offset revenue that fell below analysts’ targets. GE’s third-quarter net income rose to $3.54 billion, or 35 cents per share, from $3.19 billion, or 31 cents per share, a year earlier.Revenue rose 1 percent to $36.17 billion, below the $36.79 billion that analysts expected.

U.S. housing starts and permits rose in September, a signal the market’s modest recovery is supporting what appears to be growing strength in the broader economy. Groundbreaking rose 6.3 percent to an annual 1.02 million-unit pace, the Commerce Department said on Friday.

Federal Reserve Chair Janet Yellen said she’s “greatly” concerned by the most sustained rise in U.S. wealth and income inequality since the 19th century, while declining to offer any policy prescriptions.

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