Stocks shake off an early slump and head higher

NEW YORK (AP) — U.S. stocks reversed course and headed higher in afternoon trading as technology and bank stocks rallied.

IBM rose 3.9% after reporting solid results. The company, along with Apple, helped lift the technology sector to lead the broader gains.

Banks led financial stocks higher. BB&T rose 2.9% and SunTrust Banks rose 2.7%. Both reported earnings that easily beat analysts' estimates.

Medical equipment makers helped health care stocks reverse course after an early loss. Danaher rose 2.4% after reporting solid second quarter financial results. Abbott Laboratories rose 2% and Thermo Fisher rose 1.9%.

Market indexes were down most of the day after Netflix reported a slump in new subscribers that sank its stock and took other communications companies down with it. That sector remained the biggest loser of the day.

Consumer-oriented and energy stocks also fell. Dollar Tree shed 2% and Exxon Mobil lost 1.1%.

Corporate earnings are in full swing and investors have been cautiously assessing results and company statements. Only about 13% of S&P 500 companies have reported, according to FactSet, and analysts expect profits to fall 2.4% overall.

Several other large companies are expected to report results later Thursday, including Microsoft and Capital One Financial. American Express and Schlumberger will release their results on Friday.

The latest round of corporate earnings comes ahead of a highly anticipated Federal Reserve meeting later this month. Investors expect the central bank to cut interest rates for the first time in a decade.

KEEPING SCORE: The S&P 500 index rose 0.4% as of 3 p.m. Eastern time. The Dow Jones Industrial Average edged up 31 points, or 0.1%, to 27,247. It was down as much as 151 earlier. The Nasdaq composite rose 0.3%.

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