United Airlines Soars 12.4%

US stocks rose on Wednesday following better-than-expected profit reports from Morgan Stanley, United Airlines, and other big companies.

• The S&P 500 rose 27.21 points, or 0.5%, to 5,842.47 , a day after sliding from its all-time high because of tumbling energy and technology stocks.
• The Dow Jones Industrial Average rose 337.28 points, or 0.8%, to 43,077.70, notching another record high.
• The Nasdaq composite rose 51.49 points, or 0.3%, to 18,367.08.

Exxon Mobil and other energy producers stabilized a day after tumbling with the price of crude oil. Stocks in the chip industry also held up better a day after a market-shaking warning from Dutch supplier ASML, the AP reports.

Morgan Stanley rallied 6.4% after reporting stronger profit for the latest quarter than analysts expected. CEO Ted Pick said the investment bank enjoyed a "constructive environment" in its businesses around the world. And with stock prices near records, it's managing even more money for clients. United Airlines flew 12.4% higher after reporting a milder drop in summer profit than expected and announcing plans to send up to $1.5 billion to its shareholders by buying back its stock. JB Hunt Transport Services motored up by 3.2% after the freight company delivered better-than-expected results. They helped offset a 2.5% drop for Citizens Financial Group, which reported weaker results for the latest quarter than analysts expected.

In London, the FTSE 100 rose 1% after the government reported UK inflation eased in September to its lowest level in more than three years. That reinforced expectations that the Bank of England will cut interest rates at its next policy meeting. In the US, the Federal Reserve has also already begun cutting interest rates following years of keeping them high in hopes of slowing the economy enough to stifle high inflation. With inflation finally seeming to be heading toward the Fed's 2% target, the central bank is widening its focus to include keeping the economy humming. Stocks of smaller companies led the way on Wednesday, an indication that investors are seeing solid growth for the US economy ahead. The Russell 2000 index of smaller stocks jumped 1.6%.

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