U.S. stocks rose on Monday, reversing much of the previous session’s sharp decline, as China’s steps to stimulate its slowing economy and as earnings lured money back into equities.
In the second industry-wide cut in two months, China’s central bank on Sunday reduced the amount of cash that banks must hold as reserves in a move to help spur bank lending and combat slowing growth.
Morgan Stanley (MS.N) shares rose 1.2 percent to $37.19 after the Wall Street investment bank reported a 60 percent rise in quarterly profit and raised its dividend by 50 percent to 15 cents per share.
Hasbro (HAS.O) jumped 9.5 percent to $72.16 after the toymaker reported a surprise increase in revenue. Royal Caribbean (RCL.N) fell 7.8 percent to $72.85 after it reported a fall in revenue, saying a strong dollar hurt onboard spending by customers from outside the United States.
At 11:30 a.m. EDT the Dow Jones industrial average .DJI rose 241.7 points, or 1.36 percent, to 18,068, the S&P 500 .SPX gained 21.39 points, or 1.03 percent, to 2,102.57 and the Nasdaq Composite .IXIC added 59.37 points, or 1.2 percent, to 4,991.19.
Nearly 76 percent of the S&P 500 components that have reported earnings beat analyst expectations, topping the 70 percent average in the last four quarters. However, just 47 percent beat on revenue, compared to the 58 percent average top line beat over the las