By Saumya Vaishampayan
U.S. stocks rose on Wednesday, boosted by earnings from Intel
Corp. and Delta Air Lines Inc.
The Dow Jones Industrial Average advanced 105 points, or 0.6%,
to 18141. The S&P 500 rose 12 points, or 0.6%, to 2108, and the
Nasdaq Composite Index added 21 points, or 0.4%, to 4998.
Delta on Wednesday said earnings in its March quarter more than
tripled, beating analyst expectations as the company benefited from
lower fuel prices. The airline said it would reduce international
capacity by 3% as it deals with the strong dollar. Shares rose
3.7%.
Intel led the Dow higher, up 2.6%. The chip maker late Tuesday
reported a 3% rise in net income on overall revenue that was flat
compared with the year-ago period. Intel said last month that
revenue would suffer in the first quarter due to sagging sales of
personal computers. A bright spot was the data center group, which
posted a 19% jump in revenue.
Rail operator CSX Corp. said late Tuesday earnings rose 11% in
its latest quarter, beating expectations. The company also raised
its dividend 13% and announced a new $2 billion share repurchase
program. Shares rose 1.1%.
Gains in European stocks added to the positive tone, with
France's CAC 40 rising 0.8% and Germany's DAX adding 0.5%. The
European Central Bank kept rates unchanged, as expected, leaving
its main lending rate at a record low.
"Central banks across the board still look like they're going to
stay very accommodative and keep interest rates low for a long
time, which equity investors like," said Chris Gaffney, president
of EverBank World Markets.
U.S. stocks rose Tuesday, with the Dow adding 0.3% to 18036.70.
The S&P gained 0.2% to 2095.84. With Tuesday's gains, the Dow
is now 1.4% away from its all-time high of 18288.63 and the S&P
is 1% below its record of 2117.39.
Many investors say the next catalyst for the stock market will
come from first-quarter earnings. Expectations were slashed going
into the reporting season as companies contended with the strong
dollar and low oil prices in the period.
"The real question is not if the companies are going to meet
those expectations, but what the forward guidance is going to be
like," said Mr. Gaffney.
In economic news, U.S. industrial output fell in March and
posted the first quarterly decline since the recession ended. The
Federal Reserve said industrial production fell 0.6% from the prior
month. Economists surveyed by The Wall Street Journal had expected
a 0.4% decline in industrial production.
In commodity markets, gold futures added 0.1% to $1194.10 an
ounce. Crude-oil futures gained 1.5% to $54.11 a barrel.
The yield on the 10-year Treasury note fell to 1.881%, compared
with 1.904% on Tuesday. Yields fall as prices rise.
In other corporate news, European Union regulators formally
accused Google Inc. of violating antitrust laws. Shares fell
4.3%.
Bank of America Corp. said Wednesday it swung to a first-quarter
profit. Still, results missed analyst expectations, pushing shares
down 0.3%.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
Access Investor Kit for Intel Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4581401001