By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market opened slightly
higher on Wednesday, overcoming disappointing earnings from IBM and
Coach, Inc.
The S&P 500(SPX) added less than a point at the open to
1,844.23, building on Tuesday's modest gains. The Dow Jones
Industrial Average(DJI) began the day lower, down 27.7 points, or
0.2% at 16,391.3. The Nasdaq Composite(RIXF) opened up 3.4 points,
or 0.1%, to 4,229.99.
Disappointing results from IBM weighed on blue chips. Shares of
IBM (IBM) skidded 3.2% after the company reported fourth-quarter
revenue that fell short of estimates and disappointed with its
earnings outlook.
Off the Dow, Coach (COH), shares slumped 7% after the company
said second-quarter sales fell 6%. The company said its North
America performance continues to disappoint.
VMware(VMW) shares slipped 0.6% after the software company
announced it will buy AirWatch for about $1.54 billion. The firm
also announced its fourth-quarter revenue estimates at the high end
of its previous outlook.
Shares in Super Micro Computer Inc. (SMCI) soared 13% after the
maker of servers reported that profits in the latest quarter
doubled, topping Wall Street expectations. The company's fiscal
third-quarter outlook was also upbeat.
Advanced Micro Devices (AMD)(AMD) sank 10.53% after the chip
maker said it expects first-quarter revenue to decline 13% to 19%
from its fourth-quarter result.
Shares of United Technologies (UTX) rose 1.2% after it reported
fourth-quarter earnings fell 29% despite stronger revenue.
Shares in U.S. Bancorp (USB) fell 0.8% after the bank reported a
2.5% rise in profit in the fourth quarter, but said revenues sank
4.4%.
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After the market close, eBay Inc. (EBAY) and Netflix Inc. (NFLX)
will report. Read: New U.S. subscribers will be key to Netflix
results.
In overseas markets, Europe stocks kept a slippery hold on
gains, while Asia saw a mostly up day. Stocks in Tokyo rose after
the Bank of Japan kept its policy and asset-purchase program
unchanged.
Natural-gas futures continued to march higher as another
snowstorm hit the East Coast, which could also cause some commuter
woes for New York traders on Wednesday. Oil moved higher, while
gold drifted lower. The British pound (GBPUSD) surged against the
dollar after a sharp drop in U.K. unemployment, which could put
Bank of England interest-rate hikes back on the table.
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