U.S. stocks rose on Friday as solid results from Microsoft lifted technology stocks and eased rising trade tensions after President Donald Trump said he was ready to impose levies on $500 billion worth of goods from China.
Trump's comments on tariffs, which followed after the United States and China imposed levies on $34 billion worth of each other's goods this month, worried investors already grappling with the impact of a strengthening dollar on corporate results.
"Trade remains a major factor overall," said Michael Dowdall, investment strategist at BMO Global Asset Management in Chicago. "But people are tracking strong economic data and earnings season, where expectations are pretty high."
The industrial conglomerate's CEO John Flannery estimates new tariffs on its imports from China could raise its overall costs by $300 million to $400 million.
Shares of the world's largest construction and mining equipment maker Caterpillar fell 1 percent and 3M slipped 0.5 percent. Both the companies are due to report quarterly results over the next two weeks.
As the second-quarter reporting period gains momentum, analysts forecast for profit at S&P 500 companies have risen to 22 percent, compared with the 20.7 percent gain seen on July 1, according to Thomson Reuters I/B/E/S.
At 11:37 a.m. EDT the Dow Jones Industrial Average was up 49.01 points, or 0.20 percent, at 25,113.51, the S&P 500 was up 4.17 points, or 0.15 percent, at 2,808.66 and the Nasdaq Composite was up 30.67 points, or 0.39 percent, at 7,855.97.
Declining issues outnumbered advancers for a 1.09-to-1 ratio on the NYSE and for a 1.15-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and two new lows, while the Nasdaq recorded 88 new highs and 25 new lows.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)