IBM's results lift Dow average to a 5-year high
NEW YORK — Strong earnings from tech giants nudged the stock market to a five-year high on Wednesday. Investors drew encouragement from a vote by the House of Representatives to let the government keep paying all of its bills for four more months.
The Dow Jones industrial average rose 66.96 points to close at 13,799.17. That's the highest level since Oct. 31, 2007, a month before the Great Recession started.
Google and IBM reported surprisingly solid fourth-quarter earnings late Tuesday, a hopeful sign for investors who expected tech companies to struggle at the end of last year.
IBM's results beat expectations, thanks to its lucrative Internet-based “cloud computing” business and sales of software services to Brazil, Russia and other developing countries. The company raised its earnings outlook for the current year. IBM led the Dow's 30 stocks, rising $8.64 to $204.72.
Without IBM's 4 percent gain, the Dow would have been nearly flat.
Other indexes made slight gains. The Standard & Poor's 500 index inched up 2.22 points to 1,494.78, while the tech-heavy Nasdaq composite rose 10.49 points to 3,153.67.
The stock market has climbed so quickly this month that it will likely take more than good earnings to keep it heading higher.
“This market is really stretched,” said Clark Yingst, chief market analyst at the securities firm Joseph Gunnar. “We've essentially gone straight up since Jan. 2. There's certainly room for people to take profits.”
The S&P 500 index is up 4.8 percent in 2013. That's more than half of what most stock-fund investors hope to make in a single year.
Google gained 6 percent since its earnings climbed at the end of last year as online advertisers spent more money in pursuit of holiday shoppers. Google rose $38.63 to $741.50.
The quarterly earnings season is off to a strong start. Of the 83 companies in the S&P 500 that reported through Tuesday, 54 have beaten Wall Street's estimates.
In the bond market, the yield on the benchmark 10-year Treasury note dipped to 1.83 percent from 1.84 percent late Tuesday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Thousands of American steel jobs believed lost to import surge
- Microsoft keeping $93B offshore, off U.S. tax rolls
- Dynegy to spend $6.25B on power plant acquisitions
- Utility regulator seeks $639,000 in penalties from electric supplier
- Central banks around globe moving in different directions
- Google Maps opens business doors to online views for shoppers
- Instead of clarity, Federal Reserve Chair Yellen offers more uncertainty on interest rate hikes
- GM’s legal team targeted in federal investigation
- Deere to lay off about 460 from Iowa tractor plant
- McDonald’s names president of U.S. division
- Advocacy group requests investigation of Chrysler power system failures