US stocks rise on corporate earnings

United States stocks rallied on Friday after several big companies reported solid third-quarter earnings. The Dow Jones industrial average also gained 200 points.Associated Press reported on Friday that McDonalds Corporation rose by 2.8 per cent after reporting a nine per cent increase in income. The results beat analysts expectations and marked McDonalds ninth straight quarter of gains.Chipotle Mexican Grill Incorporated leaped by 7.1 per cent after reporting a 25-per cent jump in third-quarter income. The fast-casual chain raised prices, sold more burritos and opened new stores.Harman International Industries Incorporated rose by 11.9 per cent, the most in the Standard & Poors 500, after the audio equipment makers income came in far ahead of analysts expectations.The encouraging corporate news was in line with recent indications that the US economy, strengthened in September after a very weak summer. On Friday, the government said unemployment fell last month in half of US states, and was unchanged in 11. That was much better than August, when unemployment rose in 26 states.The Dow rose 200 points or 1.7 per cent, to 11,742 at 12:40 p.m. on Friday Eastern time. It has not gained more than 200 points in a single day since September 26. The Dow is now up 1.4 per cent from the start of 2011. It was down for the year before Fridays rally.The S&P 500 added 18, or 1.5 per cent, to 1,233. The Nasdaq composite index gained 32, or 1.2 per cent, to 2,630. The S&Ps gain put the index on track for its first three-week winning streak in eight months. Both the Dow and the S&P turned positive for the week on Friday.The Dow has gained 10.2 per cent since hitting a yearly low on October 3. The S&P was up 12.52 per cent. However, the Dow remains 8.4 per cent below its high for the year, reached on April 29. The S&P has declined 9.6 per cent since then.Traders are monitoring Europes efforts to solve the Greek debt crisis. Worries about a default by Greece have caused much of the markets volatility in recent months.European markets closed sharply higher as investors hoped that European leaders would agree on a package of measures to address the regions debt crisis in time for a summit scheduled tentatively for Wednesday. Germanys DAX index rose by 3.6 per cent. Frances CAC 40 and Italys FTSE MIB rose by 2.8 per cent.Traders had hoped for a plan to be forged at a summit on Sunday. But talks between France and Germany during the week broke down repeatedly.
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