- Dick’s Sporting Goods lays off 478 PGA golf pros
- Senators: Cease-fire must allow Israel to defend against rockets, tunnels
- Sierra Leone doctor fighting Ebola catches disease
- Iraq welcomes Russian fighter jets, helicopter gunships into ISIL fight
- John McCain laments: Obama’s ‘self-pity … is really kind of sad’
- GOP offer to fix VA gives $10 billion in emergency funds
- Paul Ryan offers to repair U.S. economic safety net with a single grant stream
- Kim Jong-un builds bond with Putin: $250M Russia-backed addition to key port opens
- Pope Francis meets Meriam Ibrahim, a Sudanese woman sentenced to death
- Detroit porch shooting trial: Suspect says he didn’t know gun was loaded
Stock market edges up on stronger housing report
Question of the Day
Even though the two tech giants disappointed, overall earnings results have come in much better than some investors had feared, said Dan Veru, chief investment officer at Palisade Capital Management in Fort Lee, N.J.
“Everyone is breathing a sigh of relief that things aren’t all that bad,” Veru said. “That’s what you see happening now.”
The Dow edged up 5.22 points to close at 13,557, barely managing its fourth straight day of gains. The broader Standard & Poor’s 500 index gained 5.99 points to 1,460.91.
Better results from Mattel, Goldman Sachs, and Johnson & Johnson shot the stock market higher Tuesday. For the week, the Dow is up 1.7 percent and the S&P 500 is up 2.3 percent.
Heading into this earnings season, FedEx, Caterpillar and other global heavyweights had warned investors that China’s slowing economy and Europe’s ongoing debt crisis would weigh on quarterly profits.
Analysts still expect that third-quarter earnings for companies in the S&P 500 will shrink for the first time since 2009.
IBM reported sales late Tuesday that missed Wall Street’s expectations. On a call with analysts, IBM’s chief financial officer said the company faced “more challenging” market conditions in September, the final month of the quarter, as cautious customers and a weakening euro undercut its results. IBM’s stock sank $10.37 to $200.63.
Without IBM’s drop, the Dow would have been 79 points higher. Stocks with higher prices carry more weight in the average of 30 large companies. Every move of $1 in any Dow stock is equivalent to moving the Dow average 7.68 points.
Intel warned that sales of personal computers will likely remain weak during the holiday season this year. The chip-maker cut its revenue estimates for the year-end quarter when it reported results late Tuesday. Intel’s stock fell 56 cents to $21.79.
The Commerce Department said Wednesday that builders broke ground on building new single-family houses and apartments at the fastest pace since July 2008. Housing starts surged to an annual rate of 872,000 in September, far above estimates by economists.
“You might think it’s a misprint,” said Dan Greenhaus, chief global strategist at BTIG, in a note to clients. But over the past year, housing starts have climbed by 43 percent.
“If there was any doubt that the housing market was undergoing a recovery, even a modest one in the face of the terrible 2008 decline, those doubts should be erased by now,” Greenhaus said.
In other trading, the Nasdaq composite index inched up 2.95 points to 3,104.12. More than two stocks rose for every one that fell on the New York Stock Exchange.
The housing report helped lift the yield on the 10-year Treasury note to 1.81 percent from 1.72 percent late Tuesday. Better economic news usually sends traders out of safe assets like Treasurys, and when bond prices fall their yields rise.
TWT Video Picks
The subsidies are a hit with patients who don't exist
- Hamas rejects Kerry's call for cease-fire; Fears grow others could join fight against Israel
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Algerian plane diverted due to storms, second aircraft: 116 missing
- Obama's empty tough-talk: Gun prosecutions plummet on his watch
- House panel OKs resolution to sue president for Obamacare delays
- Conservative groups decry Democrats' 'war on women' tactic
- Obama says public not familiar enough with issues
- Evidence shows Russia firing artillery into Ukraine: Pentagon
- Astronaut shares 'saddest photo' from space: Bombs bursting over Israel, Gaza
- Doctor, 2 others shot at Pennsylvania hospital: reports
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq