By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks closed mostly higher on
Wednesday after trading in a narrow range for the bulk of the
session. Markets shrugged off largely disappointing earnings, but
results from IBM weighed on the blue chips.
The S&P 500 (SPX) was up 1.06 points at 1,844.86. The Dow
Jones Industrial Average (DJI) fell 41.10 points, or 0.3%, to
16,373.34, falling for the second day in a row. The Nasdaq
Composite(RIXF) was the best performing index, gaining 17.24
points, or 0.4%, to 4,243.00, its highest level since July 17,
2000. The tech-heavy index gained in five out of last six trading
days and is the only measure with year-to-date gains
Disappointing results from IBM, the second-highest-priced Dow
component, weighed on blue chips. Shares of IBM (IBM) skidded 3.3%
after the company reported fourth-quarter revenue that fell short
of estimates and disappointed with its earnings outlook.
Coach Inc., (COH), the biggest decliner on the S&P 500, saw
its shares slump 6% after the company said second-quarter sales
fell 6%. Coach said its North America performance continues to
disappoint.
"Earnings have been mildly disappointing, and the reason we
aren't seeing a more pronounced selloff is because investors went
in to the season with low expectations. The last quarter of 2013
was affected by the government shutdown, tough weather, fewer
holiday shopping days, all of which led companies to lower their
outlooks," said Jim Russell, senior equity strategist for U.S. Bank
Wealth Management.
"At this point, investors are overlooking the fourth-quarter
earnings, because they are focused on this year's profits and the
pictures is more encouraging. Companies are hiring more, capital
expenditures are expected to rise and we are seeing more M&A
activity. This year, markets will be more earnings driven than
valuations driven," he added.
VMware(VMW) shares rose 1.2% after the software company said it
would 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 24% after the
maker of servers reported that profit in the latest quarter
doubled, topping Wall Street expectations. The company's fiscal
third-quarter outlook was also upbeat.
Advanced Micro Devices (AMD) sank 12% 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% after it reported
fourth-quarter earnings fell 29% despite stronger revenue.
Shares in U.S. Bancorp (USB) fell 0.3% after the bank reported a
modest rise in profit thanks to lower tax costs and credit-loss
provisions, but said revenues sank due to a decline in refinancing
activity.
Follow the stock market live blog.
Shares in Netflix Inc. (NFLX) soared 14% in after-hours trading,
following earnings that came well above analysts' forecasts. The
video-streaming company added 2.3 million new U.S. subscribers
during the past quarter.
SanDisk Corp shares rose 2.3% in after-hours trading, following
better-than-expected earnings.
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 rallied as another snowstorm hit the East
Coast on Wednesday. Oil moved higher, while gold drifted lower
after a forecast cut. The dollar surged against its Canadian
counterpart, after the Bank of Canada left rates on hold.
More stories from MarketWatch
Carl Icahn's very busy Wednesday continues with PayPal-spin
pitch to eBay
Gold prices could fall to $800 if Treasurys hit 4%
Pimco and Bill Gross will weather El-Erian's exit
Subscribe to WSJ: http://online.wsj.com?mod=djnwires