Stocks rally led by Netflix, JPMorgan and Brexit progress

Stocks gained Thursday, led by several blue chips amid the strong start to the third-quarter earnings season and the formation of a Brexit deal.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 39807.37 +47.29 +0.12%
SP500 S&P 500 5254.35 +5.86 +0.11%
I:COMP NASDAQ COMPOSITE INDEX 16379.458265 -20.06 -0.12%

Netflix shares rose after the streaming service forecast slowing subscriber growth that wasn't as bad as analysts expected. The company reported better-than-expected third-quarter earnings of $1.47 a share on in-line revenue of $5.24 billion.

Morgan Stanley capped off earnings from the biggest U.S. banks on a positive note, beating on both the top and bottom lines.

Ticker Security Last Change Change %
NFLX NETFLIX INC. 607.33 -6.20 -1.01%
MS MORGAN STANLEY 94.14 +0.60 +0.64%

Investors also piled into blue chips including Nike, Home Depot and JPMorgan Chase which rose to fresh records, helping lift the broader U.S. averages.

Ticker Security Last Change Change %
JPM JPMORGAN CHASE & CO. 200.31 +0.79 +0.40%
HD THE HOME DEPOT INC. 383.50 -2.45 -0.63%
NKE NIKE INC. 93.98 -0.17 -0.18%

Thursday morning, leaders from the European Union and the United Kingdom announced they reached a draft agreement on a Brexit deal which still needs to be backed by EU member states and by the respective parliaments.

European Commission President Jean-Claude Juncker tweeted: "Where there is a will, there is a #deal - we have one! It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions."

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Juncker told the 27 EU nations they should endorse the deal.

Elsewhere, shares of IBM were under pressure after the computer-solutions provider reported a fifth straight quarter of sliding sales. IBM's third-quarter revenue of $18.03 billion fell short of Wall Street estimates.

Ticker Security Last Change Change %
IBM INTERNATIONAL BUSINESS MACHINES CORP. 190.91 +0.09 +0.05%

Overseas, the British pound gained on word of a Brexit deal. Sterling was up as much as 1.2 percent to 1.2990 versus the U.S. dollar before paring its gains.

European stock markets were higher across the board, with Britain's FTSE leading the way, up 0.8 percent.

In Asia, Hong Kong's Hang Seng index added 0.4 percent, Tokyo's Nikkei 225 index lost 0.1 percent while the Shanghai Composite index slipped 0.2 percent.

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FOX Business' Ken Martin and the Associated Press contributed to this article.