Stocks headed for a higher close late Friday afternoon, rebounding on a wave of strong corporate earnings from Google, Honeywell and other big companies. Bank holding company Huntington Bancshares and furniture maker Knoll were among the big gainers.
KEEPING SCORE: The Dow Jones industrial average rose 112 points, or 0.7 percent, to 17,089 as of 3:01 p.m. Eastern Time. The Standard & Poor's 500 index rose 18 points, or about 1 percent, to 1,976. The Nasdaq composite gained 62 points, or 1.4 percent, to 4,426.
GLOBAL CONCERNS: Markets were recovering after stumbling Thursday following the downing of a Malaysian Airlines jetliner in Ukraine and Israel's launch of a ground offensive into Gaza stoked geopolitical uncertainty. The S&P 500 index sank 1.2 percent, its biggest one-day drop since April. All three major stock indexes ended lower for the first time in a week, but remained near record highs and positive for the year.
THE QUOTE: "Clearly the equity market remains remarkably resilient," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "At present the market is looking through the geopolitical concerns, in part because earnings generally have been pretty favorable."
MIXED DATA: The Conference Board said Friday that its index of leading indicators, designed to predict how well the economy will do in the near future, climbed in June for the fifth consecutive month. The 0.3 percent increase was slightly lower than forecast, but supports the view that the economic growth should accelerate in the second half of the year. A separate report showed the University of Michigan's measure of consumer confidence dipped slightly this month from June, likely weighed down by rising gasoline prices.
GOOGLE IT: The Internet giant reported higher quarterly earnings and revenue late Thursday. Google's revenue rose 22 percent even as advertising rates continued to drop. Although Google still makes most of its money from Internet searches, the company is generating more revenue from other sources such as YouTube and its "Play" store that sells applications for devices running its Android software. Google's stock added $23.68, or 4.1 percent, to $604.50.
SWEET RESULTS: Honeywell International added $1.48, or 1.6 percent, to $96.65 after reporting that its income rose sharply in the latest quarter and beat investors' forecasts.
COMFORTING REPORT: Knoll jumped 7.1 percent after the furniture and accessories company reported a boost in second-quarter profit and revenue, exceeding Wall Street expectations. The stock added $1.21 to $18.18.
LENDING SPREE: Huntington Bancshares gained 4.2 percent after reporting sharply higher earnings and net interest income for the second quarter. The bank holding company also reported average loan growth jumped 9 percent from a year earlier. Huntington added 38 cents to $9.69.
BEATING THE STREET: Semiconductor company Skyworks Solutions surged 13.9 percent as investors cheered its better-than-expected third-quarter earnings and profit outlook. The stock rose $6.42 to $52.76.
TAKING OFF: Several airline stocks rebounded after tumbling a day earlier following the news of the downed Malaysian Airlines airliner. American Airlines Group rose $1.19, or 2 percent, to $42.89, while Delta Air Lines added 66 cents, or 1.8 percent, to $37.23. United Continental gained 85 cents, or 2 percent, to $44.20. Southwest Airlines rose 37 cents, or 1.3 percent, to $27.88.
ALL ABOUT EARNINGS: So far, investors have mostly been pleased with the corporate earnings that have been reported, said Lawrence Creatura, portfolio manager at Federated Investors.
"In general, early results have been at least in line with investors' expectations, and in some cases much better," he said.
The second-quarter earnings season enters its busiest period next week, when the market will get financial results from companies including McDonald's, Apple, Boeing and AT&T.
SECTOR WATCH: The 10 sectors in the S&P 500 rose, led by health care. The sector is up 10.5 percent this year. Gilead Sciences notched the biggest gain among the 500 companies in the index, rising $4.14 or 4.9 percent, to $89.21. NVIDIA fell the most, shedding 80 cents, or 4.2 percent, to $18.50.
CHIPPED: Advanced Micro Devices sank after the chipmaker issued a revenue outlook for the current quarter that fell short of Wall Street's expectations. The company reported a narrower loss in its second quarter late Thursday. The stock fell 80 cents, or 17.5 percent, to $3.77.
BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.48 percent from 2.45 percent late Thursday.