By Alexandra Scaggs
U.S. stocks rose on Wednesday, with technology shares rebounding
after a strong quarterly report from Apple Inc.
The Dow Jones Industrial Average advanced 55 points, or 0.3%, to
17442. The S&P 500 gained 10 points, or 0.5%, to 2040, and the
Nasdaq Composite Index jumped 47 points, or 1%, to 4728.
Investors are awaiting an afternoon statement from the Federal
Reserve's policy-setting committee, as its two-day meeting wraps up
Wednesday. The central bank isn't expected to make any policy
changes. Investors will be looking for any clues about when
officials could raise interest rates, a move widely expected this
year.
Tech stocks led the stock-market advance, with the tech sector
of the S&P 500 up 2%. Apple rallied 7.8% after "staggering"
demand for iPhones helped the company beat even the most bullish
Wall Street forecasts.
"Apple put up very strong numbers...[which is] good following a
day that was a relative bloodbath," said Brian Fenske, head of
sales trading at ITG.
Tech stocks didn't fully recover from their 3.3% drop on
Tuesday, when a disappointing earnings report from Microsoft Corp.
sent that stock down more than 9%. Investors fret that a
strengthening dollar and weak international demand could damage
some tech companies' bottom lines.
Yahoo Inc. gained 4.3% after announcing it would spin off
tax-free its holdings in Alibaba Group Holding Ltd. Its per-share
earnings beat analyst forecasts.
A pair of Dow components led the average higher after reporting
better-than-expected quarterly results.
Boeing Co. jumped 3.8% after it posted better-than-expected
quarterly results. But the company gave a weak outlook for profit
in 2015, citing the possibility that the dive in oil prices could
damage demand for fuel-efficient planes.
AT&T Inc. rose 2.2% after fourth-quarter earnings and sales
narrowly beat Wall Street's expectations. But the
telecommunications company's results indicated some strain from
higher competition among carriers.
The gains came amid tumult in Greek markets. Bonds and stocks
there continued to slide after last weekend's election of a new
leftist government. Investors fear that Syriza's victory could lead
to confrontation between the country and its creditors. Stocks of
other indebted countries fell as well, with Spain's IBEX 35 down
1.2% and Italy's FTSE MIB slipping 0.4%. Germany's DAX Index gained
0.6%.
In other markets, gold futures slipped 0.6% to $1284.60.
Treasury prices rose, pushing the yield on the 10-year note down to
1.807%. Crude-oil futures resumed their monthslong decline,
slipping 2.4% to $45.14 a barrel.
Write to Alexandra Scaggs at alexandra.scaggs@wsj.com
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