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* McDonald’s, Travelers slip on downbeat earnings
* Facebook falls as State probe expands
* Biogen surges on reviving Alzheimer’s drug
* Hasbro takes a hit from tariff threat
* Dow up 0.14%, S&P 500 up 0.09%, Nasdaq off 0.22% (Updates market movement, adds comments)
By Shreyashi Sanyal and Arjun Panchadar
Oct 22 (Reuters) - The S&P 500 and Dow Jones indexes rose on Tuesday, lifted by upbeat corporate earnings reports that eased concerns over the fallout from the U.S.-China trade war, but a decline in shares of Facebook hurt the Nasdaq.
The benchmark S&P 500 index, which continued to hold above 3,000 points, was within striking distance of a record high hit in July, with Biogen Inc’s 26.5% surge also boosting the index. The drugmaker announced a surprise plan to file for U.S. regulatory approval for its Alzheimer’s treatment.
“I think the fact that we are encroaching on record territory in the face of all these issues speaks to the resilience of the domestic economy and more importantly the companies in the U.S.,” said Mike Loewengart, vice president, investment strategy at E*TRADE Financial Corp.
The wider healthcare index clocked the biggest increase among the major S&P 500 sectors.
Strong corporate earnings since last week have provided some respite to equity markets, which were rattled over the past few months by geopolitical worries and a slowing global economy.
Of the 98 S&P 500 companies that have reported results so far, over 80% of them topped Street estimates. Still, analysts project the first earnings contraction since 2016.
“So we have got dueling forces between what we are seeing on earnings offset some moderating economic indicators and then we overlay all that with the trade landscape and that’s what’s driving markets today,” Loewengart added.
Data showed U.S. home sales fell more than expected in September as the market continues to struggle with a dearth of properties for sale, especially for cheaper homes.
Procter & Gamble Co gained 3.8%, after raising full-year forecasts and beating Wall Street estimates.
Harley-Davidson Inc jumped 5.6% after beating quarterly profit expectations, while United Technologies Corp gained 1% on a forecast raise.
Shares of McDonald’s Corp slipped 3.4% and Travelers Cos Inc fell 7.1% on poor results.
The threat of tariffs on toys imported from China hit toymaker Hasbro Inc’s quarterly profit as shipping and warehousing costs soared. Its shares fell 14.5% and were the biggest decliners among S&P 500 companies.
At 11:31 a.m. ET, the Dow Jones Industrial Average was up 38.36 points, or 0.14%, at 26,866.00, while the S&P 500 was up 2.77 points, or 0.09%, at 3,009.49.
The Nasdaq Composite was down 17.65 points, or 0.22%, at 8,145.33. Pressuring the index was a 2% decline in shares of Facebook Inc.
New York Attorney General Letitia James said the state probe of Facebook on allegations that the company put consumer data at risk and pushed up advertising rates has expanded to attorneys general from 47 states and territories.
Advancing issues outnumbered decliners by a 1.51-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and two new lows, while the Nasdaq recorded 54 new highs and 47 new lows. (Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Arun Koyyur and Maju Samuel)