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Stocks move higher in early trading; Citi climbs

Published: Monday, July 14, 2014 11:40 a.m. CDT

Stocks moved higher in early trading Monday, kicking off the week on a positive note as the market looked to shake off its worst week in three months. Shares in several major investment banks rose after Citigroup posted better-than-expected quarterly earnings.

The Standard & Poor’s 500 index gained 10 points, or 0.6 percent, to 1,978 in the first 35 minutes of trading. The Dow Jones industrial average rose 132 points, or 0.8 percent, to 17,076. The Nasdaq composite added 25 points, or 0.6 percent, to 4,440.

Last week, investors turned cautious with the market trading near all-time highs and big companies starting to post their second-quarter earnings. The S&P 500 lost 0.9 percent for the week, its worst showing since April. This week, investors will pore over another batch of quarterly reports from corporate America, including General Electric, Google, Bank of America and Johnson & Johnson.

Citigroup’s profit sank in the second quarter but both earnings and revenue came in better than analysts had estimated. The bank also agreed to pay $7 billion to settle a federal investigation into the mortgage bonds it sold ahead of the financial crisis in 2008. Citi’s stock rose $1.57, or 3.3 percent, to $48.58.

Several other big investment banks also rose. Morgan Stanley added 0.63, or 2 percent, to $32.04, while Goldman Sachs rose $2.46, or 1.5 percent, to $167.26. JPMorgan Chase climbed 80 cents, or 1.4 percent, to $56.59.

Generic drugmaker Mylan said it will buy Abbott Laboratories’ generic-drug business in developed markets for $5.3 billion. The combined company will be organized in the Netherlands, which will cut its tax bill. The company will keep its headquarters near Pittsburgh. Mylan’s stock added $1.44, or 2.9 percent, to $51.65, while shares of Abbott gained 34 cents, or 0.8 percent, to $41.64.

In the market for U.S. government bonds, the yield on the 10-year Treasury note rose to 2.54 percent from 2.52 percent late Friday. The price of oil slipped a penny to $100.82.

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