| Merck, 3M, Procter&Gamble, and others posted mixed quarterly results. Also in focus: consumer confidence and the Fed's policy meeting Stocks were trading modestly higher late Monday morning, as investors digested a batch of earnings reports and the Federal Reserve kicked off its two-day policy meeting. Consumer confidence posted a third straight monthly increase. Some market pros expect the Fed's policy statement Wednesday to take a more hawkish tone on inflation, says Standard&Poor's Equity Research.
In early trading, the Dow Jones industrial average nudged higher 9.3 points, or 0.07%, to 12,500.08. The broader Standard&Poor's 500 index rose 3.91 points, or 0.16%, to 1,424.02. The tech-heavy Nasdaq composite added 3.91 points, or 0.16%, to 2,445.
In economic news, the Fed began its two-day interest-rate meeting Tuesday. With central bankers widely expected to leave interest rates unchanged, focus will be on Wednesday's policy statement.
The U.S. consumer confidence index rose in January to 110.3, its best since 2002, from an upwardly revised 110.0 in December. Separately, the U.S. ICSC-UBS chain store sales index dropped 0.9% in the week ended Jan. 27, after edging up 0.1% a week earlier.
A stream of earnings reports was also in the spotlight Tuesday. Procter&Gamble (PG) was lower after the consumer products maker posted a 12% gain in profits for its fiscal second quarter and lifted its full-year outlook.
Merck (MRK) was lower after the drugmaker said fourth-quarter earnings tumbled 58% and affirmed its full-year profit outlook.
Fellow Dow component 3M (MMM) was down after the conglomerate's 58% jump in fourth-quarter profit missed Wall Street expectations.
Colgate Palmolive (CL) was modestly lower after the toothpaste, soap, and pet-food maker reported a 11% rise in fourth-quarter net income.
On the upside, U.S. Steel (X) was higher after the steel maker said its fourth-quarter profit more than doubled.
In analyst calls, Alcoa (AA) was higher after Morgan Stanley upgraded the aluminum maker from equal weight to overweight.
Starbucks (SBUX) was higher after J.P. Morgan upgraded stock from neutral to overweight.
Elsewhere, Motorola (MOT) was higher on news billionaire investor Carl Icahn is seeking a seat on the cell-phone maker's board of directors.
Microsoft (MSFT) was lower as retailers began selling the company's nnew, long-awaited Windows Vista operating system.
Meanwhile, Delta Air Lines (DALRQ.PK) said it has secured $2.5 billion in exit financing as it aims to emerge from bankruptcy.
In the energy markets, March West Texas Intermediate crude oil futures rose 93 cents to $54.94 a barrel amid conflicting reports on OPEC output.
European markets were trading higher. The FTSE-100 index in London edged up 5.7 points, or 0.09%, to 6,245.6. Germany's DAX index rose 67.57 points, or 1%, to 6,793.58. In Paris, the CAC 40 index added 13.29 points, or 0.24%, to 5,632.99.
Asian markets ended higher. In Japan, the Nikkei 225 index gained 19.73 points, or 0.11%, to 17,490.19. In Hong Kong, the Hang Seng index cimbed 223.78 points, or 1.11%, to 20,460.46. Korea's Kospi index advanced 7.62 points, or 0.56%, to 1,370.72.
Treasury Market
Treasury yields drifted lower as consumer confidence rose and the Fed began its policy meeting. The 10-year note rose modestly in price to 98-01/32 for a yield of 4.88%, while the 30-year bond advanced to 92-19/32 for a yield of 4.98%. |
