US stocks rise on strong Apple, Boeing results
NEW YORK: US stocks rose in early trade Wednesday following strong earnings reports from technology giant Apple and aerospace powerhouse Boeing.
About 25 minutes into trade, the Dow Jones Industrial Average stood at 17,462.76, up 75.55 points (0.43 percent).
The broad-based S&P 500 gained 11.39 (0.56 percent) to 2,040.94, while the tech-rich Nasdaq Composite Index jumped 49.78 (1.06 percent) to 4,731.28.
Apple bolted 8.0 percent higher after disclosing that first-quarter profit was a record $18 billion on booming sales of big-screen iPhone models, especially in China.
Dow member Boeing followed suit, rising 4.1 percent after reporting fourth-quarter profit increased 18.9 percent to $1.5 billion on strong commercial aircraft deliveries.
The robust earnings reversed negative momentum from Tuesday, when a stream of disappointing profit reports sent markets sharply lower.
Investors were eyeing the conclusion of a two-day Federal Reserve meeting Wednesday and the release of a policy statement that will be scrutinized for signals on when the central bank could raise interest rates.
Yahoo advanced 3.0 percent on news it will spin off its stake in Chinese Internet giant Alibaba in a move designed to avoid a hefty tax bill.
Alibaba fell 2.8 percent following an unusual rebuke from a Chinese regulator accusing the company of "illegal" actions on its multi-billion-dollar online shopping platform. The State Administration for Industry & Commerce castigated the company for poor oversight of its employees as well as merchants and products on its platforms.
Online game developer Electronic Arts surged 9.4 percent as it reported thirdquarter profits of $142 million, up from a $308 million loss a year ago.
Bond prices rose. The yield on the 10-year US Treasury fell to 1.80 percent from 1.82 percent Tuesday, while the 30-year dropped to 2.37 percent from 2.40 percent. Bond prices and yields move inversely.-Agencies