U.S. stocks rose, after better-than-estimated earnings from Amgen Inc. and Expedia Inc. amid speculation that slow wage growth will temper Federal Reserve plans for higher interest rates
Amgen rallied 3.9 percent and Expedia jumped 10 percent. Coca-Cola Enterprises Inc. added 13 percent after a report said it’s considering a three-way merger with two other bottlers. Exxon Mobil Corp. had its worst quarter in six years, and Chevron Corp. posted its lowest profit in more than 12 years, sending shares down at least 3.4 percent. LinkedIn Corp. tumbled 9 percent amid concerns growth is slowing in its main business.
The Standard & Poor’s 500 Index gained 0.2 percent to 2,113.05 at 12:29 p.m. in New York, heading for its best monthly increase since February. The Dow Jones Industrial Average added 11.18 points, or 0.1 percent, to 17,757.16, even with a 42-point drag from Chevron and Exxon. The Nasdaq Composite Index increased 0.5 percent.
Data earlier showed wages and salaries in the U.S. rose in the second quarter at the slowest pace on record, dashing projections that an improving labor market would boost pay.
A separate report said consumer confidence retreated in July as Americans’ expectations deteriorated to an eight-month low. After adjusting for changes in prices, just three in 10 surveyed thought their chances were better than 50 percent for real income gains over the next five years.