US stocks rise on strong Ap­ple, Boe­ing re­sults

The Financial Daily - - NATIONAL -

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

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