(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Brexit deal yet to receive parliament approval
* Netflix jumps on adding more paying subscribers
* Morgan Stanley wraps up bank earnings with profit beat
* IBM falls on quarterly revenue miss, pressures Dow
* Indexes up: Dow 0.08%, S&P 500 0.31%, Nasdaq 0.33% (Updates to early afternoon, adds comments)
By Shreyashi Sanyal
Oct 17 (Reuters) - U.S. stocks rose on Thursday on the back of strong earnings from Netflix and Morgan Stanley, with Britain’s preliminary last-minute deal with the European Union adding to the upbeat mood.
British Prime Minister Boris Johnson said “we have a great new Brexit deal”, although he still faces a tough vote in parliament on Saturday.
“It seems as if the Brexit deal is being viewed as a modest positive by investors but along with the tentative U.S.-China trade deal, the devil is in the details,” said Michael Geraghty, equity strategist at Cornerstone Capital Group in New York.
“From where we are right now investors are viewing the glass as half full.”
Netflix Inc shares rose 3.6%, after the video streaming service provider added slightly more paying subscribers than Wall Street’s expectations in the third quarter.
The stock helped the communication services sector rise 0.7%. The S&P 500 and Nasdaq indexes touched near one-month highs earlier in the day.
Morgan Stanley climbed 3% after the bank beat analysts’ expectations for quarterly profit, wrapping up strong earnings from major U.S. lenders including JPMorgan Chase & Co , Citigroup Inc and Bank of America .
“We’ve had pretty good earnings reports so far but that is also because the bar had been lowered well before entering the season,” said Vincent Deluard, global macro strategist at INTL FCStone.
Supporting sentiment was White House economic adviser Larry Kudlow’s comments that he sees momentum to finalize the initial phase of a U.S.-China trade deal outlined last week, adding it may be signed at the APEC forum next month.
Rising uncertainties around the trade war, increasing geopolitical risks and weak domestic economic indicators have been a concern for investors.
In the latest sign, data showed U.S. homebuilding tumbled from a more than a 12-year high in September, while another report showed a deceleration in factory activity in the mid-Atlantic region in October.
“The manufacturing data is not really new, the housing data on the other hand is starting to show a softening consumer,” said Joe Mallen chief investment officer at Helios Quantitative Research in Tampa, Florida.
The third-quarter earnings season is expected to see its first year-on-year contraction since 2016, with analysts estimating a 2.9% drop in S&P 500 earnings.
Of the 63 S&P 500 companies to have posted quarterly results so far, 82.5% have beaten estimates.
At 1:05 p.m. ET the Dow Jones Industrial Average was up 20.27 points, or 0.08%, at 27,022.25, the S&P 500 was up 9.40 points, or 0.31%, at 2,999.09 and the Nasdaq Composite was up 26.70 points, or 0.33%, at 8,150.88.
Limiting gains on the blue-chip index was a 6% slide in shares of International Business Machines Corp after the company missed quarterly revenue estimates.
The Dow Jones Transports index, which is closely watched by investors to gauge the health of the economy, was up 0.8%.
CSX Corp shares rose 2% after the railroad operator beat quarterly profit expectations.
Advancing issues outnumbered decliners by a 2.00-to-1 ratio on the NYSE and by a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and two new lows, while the Nasdaq recorded 47 new highs and 46 new lows. (Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva)