Yahoo Finance Stocks Higher After Data, Earnings
U.S. Market
Stocks were higher at midday with global markets monitoring economic data and corporate earnings. Focus will also be on the Fed's release of its beige book this afternoon.
Overnight, China reported a 7.4% first-quarter increase in gross domestic product, and a 12.1% gain in retail sales for March. Each reading came in slightly ahead of expectations.
Stateside, U.S. housing starts increased by 2.8% in March, while the February tally was revised higher, as well. However, starts missed expectations and were 5.9% lower than they were the same time last year. Building permits, an indicator of future construction, fell 2.4%.
Industrial production data offered signs of optimism that U.S. manufacturers are improving their output following the harsh winter weather. Production for March increased 0.7%, seasonally adjusted, beating expectations. The capacity utilization rate of 79.2% was also better than forecast.
Treasury yields were higher following the data reports.
The Dow and the S&P 500 were each 0.8% higher at midday. The Nasdaq had gained 1%.
Stocks on the Move
Bank of America (BAC) posted a first-quarter loss of $0.05 per share compared with a profit of $0.10 per share the same time last year, as legal charges and other special items weighed on results. Revenue slipped 2.7% to $22.57 billion, though it still beat Wall Street forecasts. Adjusted earnings per share of $0.14 were also better than expected, but shares were down 2.4% at midday.
U.S. Bancorp (USB) announced a 2.2% decline in first-quarter net income, which was $1.4 billion compared with last year's tally of $1.43 billion. Revenue slipped by 1.2%, and earnings per share and sales were in line with Street expectations. Shares were down 1.2% at midday.
Abbott Laboratories (ABT) reported a 31% decline in first-quarter profit, which was $375 million versus $544 million from the same time last year. Revenue decreased 2.5% to $5.25 billion, hampered by currency fluctuations. When adjusted, earnings per share exceeded the company's forecast while total sales increased. Shares were 0.5% higher at midday.
After Tuesday's closing bell, Yahoo (YHOO) issued yet another anemic report for its core business in the first quarter, with continued growth in revenue and cash flows of Alibaba Group (of which Yahoo owns 24%) overshadowing continued share loss in the digital advertising market, say Morningstar analysts, who suggest that the possibility of an IPO of Alibaba provides most of the potential upside for Yahoo shareholders. Yahoo shares were up 6.8% at midday.
Foreign Markets
Stocks overseas were higher Wednesday. The Shanghai Composite rose 0.2%, and the Hang Seng improved by 0.1%. The Nikkei 225 jumped 3%.
In Europe, the FTSE 100 rose 0.7%. The Paris CAC was up 1.4%, and the DAX had gained 1.6%.
