US STOCKS-Wall St gains on strong corporate earnings

* Netflix, eBay jump after quarterly results

* Dollar gains ground against major currencies

* Dow up 0.4 pct, S&P up 0.4 pct, Nasdaq up 0.3 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday trade, changes byline)

By Angela Moon

NEW YORK, Oct 21 (BestGrowthStock) – Strong corporate earnings
kept Wall Street higher for a second day on Thursday, but the
major U.S. stock indexes trimmed earlier gains as the dollar
started to gain ground.

Blue chips McDonald’s Corp (MCD.N: ) and Travelers Cos Inc
(TRV.N: ) helped lift the Dow after reporting
better-than-expected results, while eBay Inc (EBAY.O: ), Netflix
Inc (NFLX.O: ) and Amazon.com (AMZN.O: ) buoyed both the consumer
sector and the Nasdaq Composite.

The euro, which rose against the dollar earlier, briefly
lost gains in midday trade. The euro and the popularly traded
S&P E-mini futures contract have tracked each other closely in
the last month. In the last 22 sessions, they have had a
positive correlation coefficient of 0.89, implying a very
strong relationship between the two.

“If you’re going to trade the U.S. equity market, you have
to have a very strong opinion on what the euro is going to
do,” said Marshall Gause, CEO and chief investment officer at
asset management firm Geneva Funds Partners in Denver.

This action helps explain why the markets can seemingly
slough off the decline of Caterpillar (CAT.N: ), which is down
even though it reported strong results. The stock is down 1.7
percent at $78.54, but the industrial sector is not following
suit. The S&P 500 industrial sector index (.GSPI: ) was up 0.6
percent.

The Dow Jones industrial average (.DJI: ) gained 49.04
points, or 0.44 percent, at 11,157.01. The Standard & Poor’s
500 Index (.SPX: ) was up 4.41 points, or 0.37 percent, at
1,182.58. The Nasdaq Composite Index (.IXIC: ) rose 7.16 points,
or 0.29 percent, at 2,464.55.

Calming fears after recent monetary tightening, data
showed economic growth in China slowed in the third quarter,
but was still at a healthy level. For details, see
[ID:nTOE69K00X]

Online auctioneer eBay rose 8.9 percent to $27.94.
Netflix, the movie rental and streaming service, jumped 12.1
percent to $171.69 after both reported upbeat results late
Wednesday. [ID:nN20228251] and [ID:nN20229905].

Amazon advanced 3.3 percent to $163.96 after it was
upgraded to a “buy” rating by Bank of America Merrill. It is
expected to post results after the closing bell.

McDonald’s gained 1.8 percent to $78.81 after it beat
expectations for quarterly profit and same-store sales growth
in September.

Travelers’ shares gained 0.8 percent to $55.10 after the
largest publicly traded U.S. property casualty insurer easily
beat estimates as premiums rose in its personal insurance
lines. [ID:nN21165866] and [ID:nN21266849].

On the downside, Bank of America (BAC.N: ) fell 2.7 percent
to $11.43 as investors remained concerned over mortgage
foreclosure issues.

On the economic front, new claims for unemployment
benefits fell more than expected last week. The Conference
Board also said an index of future U.S. economic activity
posted a third successive increase in September, but at a pace
so modest that it implied only lackluster growth ahead.[ID:nN21275986]
(Reporting by Angela Moon; Editing by Jan Paschal)

US STOCKS-Wall St gains on strong corporate earnings