U.S. Stocks Rise on Earnings and Cooling Inflation Data

U.S. stocks rose in afternoon trading after BlackRock and other large companies posted quarterly results that exceeded analyst forecasts and a government report showed wholesale inflation slowed more than expected. The S&P 500 advanced 0.4 per cent and was on pace for a fourth gain in five sessions.

The Dow Jones Industrial Average climbed 175 points, or 0.3 per cent, while the Nasdaq composite increased 0.6 per cent.

Australian share futures pointed to a 0.1 per cent gain at the open. The Australian dollar traded at US70.12 cents.

BlackRock shares rose 6.5 per cent after the firm reported higher profit and revenue than expected and said its iShares funds reached more than $US6 trillion in assets under management. Bank of New York Mellon gained 3.7 per cent and Cintas increased 4.1 per cent on similar beats.

Elevance Health fell 8.7 per cent despite reporting stronger results. Intel declined 5.5 per cent and Micron Technology dropped 7.4 per cent.

A separate report showed the wholesale inflation rate slowed to 5.5 per cent from 6 per cent in May, below economist forecasts. Traders now assign a 10 per cent probability to a Federal Reserve rate increase at its next meeting, down from 42 per cent earlier in the week. The yield on the 10-year Treasury note fell to 4.55 per cent.

Oil prices fluctuated near one-month highs amid ongoing military exchanges between the United States and Iran. Brent crude briefly exceeded $US86 a barrel before settling at $US84.33, down 0.5 per cent. Iran's Revolutionary Guard said it would halt all energy exports from the Middle East if the U.S. military continued to block tankers carrying Iranian oil through the Strait of Hormuz.