By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The Dow Jones Industrial Average
entered record territory again Wednesday, buoyed by
better-than-expected company earnings and deal talk, though the
index has come off the day's highs.
Broader indexes were also higher. But while Time Warner Inc.
surged on news that it had rejected a bid from 21st Century Fox
Inc., biotech and Internet stocks continued to sell off for the
second day, after a report from the Federal Reserve on Tuesday
raised concerns about their valuations.
The S&P 500 (SPX) was 5 points, or 0.3%, higher at 1,980.97.
The Dow Jones Industrial Average (DJI) gained 42 points, or 0.3%,
to 17,102.98, and has set an intraday record at 17,138.81.
The Nasdaq Composite (RIXF) trimmed early gains to 17 points, or
0.4%, to 4,433.20.
Federal Reserve Chairwoman Janet Yellen is spending a second day
testifying on Capitol Hill. In her comments, she stressed a softer
line, saying the Fed doesn't have a target for equity values. The
central bank instead looks to see if valuations are outside
historical norms.
"In that sense, I am not seeing alarming warning signals," she
said. Follow Yellen's testimony on this live blog.
Also read: Jim Cramer is wrong -- the Fed should talk
valuations
But most of investors' attention was on earnings and M&A
news.
Time Warner Inc. (TWX) shares jumped 18% as the media company
confirmed it had rejected an $80 billion offer from 21st Century
Fox (NWS).
"The news about Time Warner's rejection of a takeover bid by
21st Century Fox signals that corporations are healthy and see
value in assets that the public markets do not see. And if
companies deliver on 5% earnings growth estimate, then current
multiples and prices on the S&P 500 are justified," said Joe
Peta, managing director at Novus, a financial technology
company.
Also read: Fox's bid for Time Warner may be a buy signal for
Viacom
Intel Corp.(INTC) jumped 6.3% after the technology maker
reported market-pleasing results late Tuesday, while disappointment
over Yahoo Inc.'s(YHOO) results left those shares down 4.5%.
HCA Holdings Inc.(HCA) leapt 9.8% as the hospital operator
raised its earnings guidance for the second quarter and full year.
For more on today's movers, read our Mover and Shakers column.
Online-auction provider eBay Inc.(EBAY) reports after the close
of markets on Wednesday.
European stocks rise, commodities edge up
Across other markets, Hong Kong's Hang Seng closed at a one-week
high.. China's economic growth rate hit 7.5% in the April-June
quarter. While that topped expectations, it still triggered
discussion about whether the government will offer up more
stimulus.
European stocks were boosted by that Chinese data. It also
lifted oil prices, with crude for August delivery (CLQ4) trading at
$101.17 a barrel. Gold for August delivery (GCQ4) edged up, and the
dollar (DXY) pushed higher.
More must-reads from MarketWatch:
There's a big hole in the bull case for stocks
9 reasons Apple's stock price will keep rising
Delamaide on where the right and left agree on Obama
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