Wednesday, October 17, 2012

US stocks gain despite poor Intel, IBM earnings






In this Monday, October 15, 2012, file photo, Traders Ronald Madarasz, left, and Vincent Quinones work on the floor of the New York Stock Exchange. US stocks closed broadly higher Wednesday, October 17, 2012, extending two days of solid gains. AP/RICHARD DREW



NEW YORK—US stocks fought off early selling pressure linked to disappointing quarterly results from IBM and Intel to close broadly higher Wednesday, extending two days of solid gains.


Strong data on new home building helped buoy stocks with hopes that the housing sector was beginning to revive.


At the close, the broad-based S&P 500 was up 5.73 points (0.39 percent) at 1,460.65, while the tech-rich Nasdaq added 2.63 (0.08 percent) at 3,103.80.


The narrower Dow Jones Industrial Average of 30 blue chips touched into the black in the final minutes, gaining 1.81 points (0.01 percent) at 13,553.59.


Intel shares fell 2.5 percent and IBM 5.0 percent after their disappointing third-quarter reports following the close of trade on Tuesday.


IBM revenues fell more than expected due to a sharp drop in hardware sales, and the company took a hit on shifts in the foreign exchange market.


Intel said it was cutting back chip output due to slow computer sales and lowered forecasts of tablet sales.


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Tags: close , Stock Activity , stocks , US



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