By Anora Mahmudova and Victor Reklaitis, MarketWatch
Coca-Cola climbs after quarterly results
U.S. stocks staged were trading modestly higher on Wednesday, as
investors assessed a number of earnings including
better-than-expected profits from three Dow components.
A better-than-anticipated reading on the housing market
(http://www.marketwatch.com/story/march-existing-home-sales-rise-61-to-519-million-rate-2015-04-22)
also helped lift the markets.
Visa Inc.(V), which jumped 6% in Wednesday trade after news that
the Chinese government announced that it would open up its market
for clearing domestic bank card transactions, also helped boost the
Dow.
In fact, the combined moves in Visa and McDonald's (MCD) were
contributing about 30 points to the Dow, while stocks like Boeing
Co. (BA) were shaving off about 25 points from the blue-chip
index.
The Dow Jones Industrial Average (DJI) was up 56 points, or
0.3%, to 18,066, while the S&P 500 (SPX) rose 9 points, or
0.4%, to 2,106.1. The tech-heavy Nasdaq Composite (RIXF) added 12.5
points, or 0.3%, to 5,027.
Investors are looking to corporate earnings as a guide to the
health of the U.S. economy amid one of the busiest weeks for
quarterly results. Ahead of the bell, Dow components McDonald's
(MCD), Coca-Cola (KO) and Boeing all posted better-than-expected
earnings, but noted that costs for some of its jets were
rising.
Matt Kaufler, portfolio manager at Federated Investors, said a
stronger reading on home sales and earnings that are coming at, or
above, expectations are giving some confidence to investors.
"We believe a lot of revisions due to a stronger dollar had been
overblown. Investors forget that the stronger dollar has positive
as well as negative effects on company earnings and net net it
should not be as bad as feared," Kaufler said.
"The market has been trading close to record levels and has an
upside bias. However, we would not be disappointed to see the
market trade sideways the whole year," Kaufler noted.
"The S&P 500 has been touching this bearish trend line
around 2,110...so the market is just waiting to see how the rest of
the U.S. earnings will be like before deciding to push higher,"
said Fawad Razaqzada, technical analyst at Forex.com.
Colin Cieszynski, chief market strategist at CMC Markets, said
in a note that "the major advances of the last six months have left
major indices fully valued and exhausted for now and in
consolidation/digestion mode."
More big names will report after the close of trading, including
Facebook Inc. (FB) and eBay Inc. (EBAY). On Tuesday
(http://www.marketwatch.com/story/us-stocks-futures-climb-ahead-of-trio-of-dow-earnings-2015-04-21),
the S&P 500 and Dow fell 0.2% and 0.5%, respectively, but the
Nasdaq closed up 0.4%.
Individual movers: McDonald's gained after its adjusted
quarterly profit topped expectations
(http://www.marketwatch.com/story/mcdonalds-reports-steeper-profit-fall-2015-04-22),
and as the fast-food giant embarks on a turnaround.
Coca-Cola posted better-than-expected profit
(http://www.marketwatch.com/story/cokes-results-top-expectations-2015-04-22-74854226)
and revenue in the first quarter, helping send its shares up.
Boeing'sfirst-quarter earnings also beat forecasts
(http://www.marketwatch.com/story/boeing-profit-beats-estimates-sales-fall-short-2015-04-22),
with results boosted by strong commercial-jet demand, but shares
dipped.
Angie's List (ANGI) shares soared after the company, which
operates a website that allows users to review local businesses,
said it swung to a profit in the first quarter
(http://www.marketwatch.com/story/angies-lists-stock-jumps-after-company-swings-to-surprise-profit-2015-04-22).
Read more about Wednesday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/facebook-mcdonalds-coca-cola-in-focus-wednesday-2015-04-22)
Other markets: Japan's Nikkei stock index closed above 20,000
(http://www.marketwatch.com/storyno-meta-for-guid) for the first
time in 15 years, and Hong Kong-listed stocks finished higher.
European stocks (http://www.marketwatch.com/storyno-meta-for-guid),
meanwhile, were pulling back.
Oil (CLM5) lost ground, but remained above $56 a barrel. Gold
futures (GCK5) fell, while the ICE dollar index (DXY) was roughly
flat.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires