US STOCKS-Utilities boost Wall Street as bombs fly in Iraq
* Benchmark Treasury yield at 14-month low
* Tekmira jumps as FDA modifies Ebola treatment status
* Indexes up: Dow 0.3 pct, S&P 0.3 pct, Nasdaq 0.2 pct (Updates to morning trading)
By Rodrigo Campos
NEW YORK, Aug 8 (Reuters) - U.S. stocks rose on Friday, with high dividend-paying utility stocks leading gains and benchmark Treasury yields at a 14-month low, as the United States bombed Islamic State positions in Iraq.
Stock index futures had slumped overnight after President Barack Obama authorized relief supplies and air strikes on Iraq.
U.S. warplanes struck Iraq Friday for the first time since American troops pulled out in 2011, attacking Islamic militants after Obama said Washington must act to prevent a potential "genocide" of besieged minorities.
Markets had been on tenterhooks recently, with the S&P 500 set to close a second week of losses, after Russia banned the import of Western foods in retaliation for sanctions over Moscow's support of Ukrainian separatists.
A rebound in U.S. stock index futures before the market opened was influenced a report that Russia was aiming to de-escalate the conflict in Ukraine, some traders said. Such a turn of events would be beneficial to Europe's fragile economic recovery. Continuación...