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 earnings and corporate news.
Gains for Apple Inc., IBM Corp. and Intel Corp. were driving
gains on the main benchmarks.
Investors will focus on testimony from Federal Reserve
Chairwoman Janet Yellen and several items on the economic
calendar.
The S&P 500 (SPX) were 8 points, or 0.4%, higher at
1,980.97. The Dow Jones Industrial Average (DJI) gained 55 points,
or 0.3%, to 17,114.890, setting an intraday record. The Nasdaq
Composite (RIXF) added 25 points, or 0.6%, to 4,440.88.
"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.
Time Warner Inc. (TWX) shares jumped 18% after CNBC reported
that the media company has rejected an $80 billion buyout offer
from 21st Century Fox (NWS).
Bank of America Corp. (BAC) shares dropped 2% after the bank
reported earnings results that missed analysts expectations.
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%.
Meanwhile, shares of Apple Inc. (AAPL) rose 1% and IBM Corp.
(IBM) added 1.5%, after the two technology companies said late
Tuesday that they are teaming up to create business apps and sell
iPhones and iPads to Big Blue's corporate customers. 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.
Home builders turn optimistic, wholesale prices edge up
Home builders turned optimistic this month, with a gauge of
their confidence hitting the highest level in half a year.
Industrial production was somewhat weaker than expected.
Federal Reserve Chairwoman Janet Yellen enters her second day of
testimony to Congress on the economy. Live blog and video of Janet
Yellen appearance before the House
European stocks rise, commodities edge up
Across other markets, Asian stocks closed mixed, but with most
major indexes sticking to slim moves. China's economic growth rate
hit 7.5% in the April-June quarter, data showed Wednesday. That
beat expectations, and triggered discussion about whether the
government will offer up more stimulus.
European stocks got a boost from that Chinese data, which lifted
resource stocks. It also lifted oil prices, with crude for August
delivery (CLQ4) trading at $100.92 a barrel. Gold for August
delivery (GCQ4) edged up and the dollar (DXY) pushed higher on
interest-rate-timing comments by Yellen.
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