US stocks finished higher on Friday as investors welcomed better-than-expected corporate earnings.
The Dow Jones Industrial Average rose 47.23 points, or 0.37%, to finish at 12,810.54. The S&P 500 added 3.13 points, or 0.23%, to close at 1,363.61. The Nasdaq Composite climbed 1.01 points, or 0.04%, to 2,873.54.
A release by Commerce Department showed that US consumer spending, which accounts for nearly two third of the economy, increased 0.6% in March. Personal income increased 0.5% in March.
Caterpillar Inc. (NYSE: CAT) reported Friday that its first-quarter profit climbed to $1.23 billion, or $1.84 a share, from $233 million, or 36 cents a share, in the year-earlier quarter. Revenue grew to $12.95 billion from $8.24 billion. Analysts, on average, expected the company to report earnings of $1.30 a share on revenue of $11.4 billion. Caterpillar shares rallied $2.77, or 2.46%, to $115.41.
After Thursday's closing bell, Microsoft Corp. (NASDAQ: MSFT) reported that its fiscal third-quarter profit rose to $5.2 billion, or 61 cents a share, from $4 billion, or 45 cents a share, in the year-earlier quarter. Revenue climbed 13% to $16.43 billion from $14.5 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 56 cents per share on revenue of $16.19 billion. Microsoft shares dropped nearly1.90% in Friday's pre-market trading. Microsoft shares slumped 79 cents, or 2.96%, to $25.92.
Goodyear Tire & Rubber Co. (NYSE: GT) reported Friday that it swung to a first-quarter profit of $103 million, or 42 cents a share, from a year-ago loss of $47 million, or 19 cents a share. Revenue climbed to $5.4 billion from $4.27 billion. Analysts, on average, expected the company to report earnings of 12 cents per share on revenue of $4.77 billion.
Shares of Sprint Nextel Corp. (NYSE: S) rose 7 cents, or 1.37%, to close at $5.18.
European stocks closed higher. The UK FTSE rose 1.74 points, or 0.03% to 6,069.90. The German DAX and French CAC increased 0.52% and 0.05% respectively.
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