Strong results from Google, IBM push stocks higher

By MATTHEW CRAFT

(NEW YORK, AP) — Strong earnings from tech giants are nudging the stock market higher early Wednesday, ahead of a planned vote in Congress to raise the country’s borrowing limit.

Tech giants Google and IBM reported surprisingly solid earnings late Tuesday, a hopeful sign for investors. Analysts had projected technology companies would post weak results in the fourth quarter.

The Dow Jones industrial average rose 57 points to 13,769 as of 10:10 a.m. EST. IBM led the Dow’s 30 stocks, surging 6 percent.

The Standard & Poor’s 500 index was flat at 1,492. The Nasdaq composite rose 12 points to 3,155.

House Republicans are expected to vote in the afternoon on a measure to lift the federal government’s debt ceiling, giving it enough room to pay its bills for another three months.

Google jumped 6 percent in early trading. Its earnings climbed at the end of last year as online advertisers spent more money in pursuit of holiday shoppers. The stock rose $40.61 to $743.88.

IBM’s results beat expectations, thanks to its lucrative Internet-based “cloud” computing business and other software services. IBM also raised its earnings outlook for the current year. Its stock rose $11.36 to $207.48. Apple is scheduled to report its results after the close of trading.

Advanced Micro Devices also reported results that were better than analysts had expected. The world’s second-largest maker of microchips, behind Intel, posted a smaller loss and higher revenue than analysts had forecast. AMD jumped 8 percent, making it the top stock in the S&P 500. It rose 22 cents to $2.65.

Coach plunged 14 percent, or $8.64, to $52.04 after the luxury handbag maker said a challenging economy and heavy price-cutting by competitors weighed on its results. Rivals like Michael Kors are attracting loyal followers.

In the bond market, the yield on the benchmark 10-year Treasury note dipped to 1.82 percent, down from 1.84 percent late Tuesday.

Posted by on January 23, 2013. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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