NEW YORK (Reuters) - U.S. stock prices rose on Monday, with the Dow Jones Industrial Average and S&P 500 posting record closes amid upbeat company earnings, while oil fell on worries about growing supply and traders brushing off a failed coup in Turkey.
As Turkish authorities sought to retaliate for a bid by a faction of the armed forces to seize power, traders pared safe-haven holdings of yen, gold and low-risk government bonds.
“We’re now on to the next shiny new object and that’s earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “As long as companies beat earnings estimates, investors will feel comfortable buying stocks.”
Bank of America BAC.N, the No. 2 U.S. bank by assets, and fellow S&P 500 component Hasbro HAS.O posted better-than-expected profit for the second quarter, mirroring the results of the few companies, including big banks, that reported last week.
The Dow Jones industrial average .DJI unofficially closed up 16.5 points, or 0.09 percent, at 18,533.05, the S&P 500 .SPX ended up 5.15 points, or 0.24 percent, to 2,166.89 and the Nasdaq Composite .IXIC finished 26.20 points, or 0.52 percent, higher to 5,055.78.
The FTSEurofirst 300 .FTEU3 index ended 0.2 percent higher at 1,338.06.
The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 nations, rose 0.92 point or 0.2 percent, to 412.15.
Turkish stock prices .XU100, however, were down 7 percent.
Selling in oil futures was stoked by reduced worries about widening political instability in the Middle East as the coup bid in Turkey ended. Downward price pressure persisted on fresh U.S. supply data.
The dollar index .DXY was little changed at 96.541.
The Turkish lira TRY= recovered after posting its biggest one-day drop against the greenback since October 2008 on Friday when news of the coup attempt broke, according to Reuters data. It was last up 1.75 percent at 2.9660 lira.
Spot gold prices XAU= fell $8.65 or 0.65 percent, to $1,328.80 an ounce.
Although concerns about Turkey’s stability have abated for now, yields on 10-year U.S. and German government debt slipped on expectations the European Central Bank may embark on more stimulus to help the region’s sluggish economy.
Additional reporting by Yashaswini Swamynathan in Bengaluru; Nigel Stephenson, Patrick Graham and Sudip Kar-Gupta in London, Wayne Cole in Sydney; Editing by Nick Zieminski and Meredith Mazzilli
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