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US stocks rise despite Apple hit

Agence France-Presse
Despite a disappointing outlook from Apple, US stocks moved higher in early trade

US STOCKS RISE. A trader works on the floor of the New York Stock Exchange on the evening of January 7, 2014 in New York City. Andrew Burton/Getty Images/AFP

NEW YORK, USA – US stocks moved higher in early trade Tuesday, overcoming a poor durable goods report and a disappointing outlook from Apple.

About 35 minutes into trade, the Dow Jones Industrial Average gained 95.43 (0.60%) to 15,933.31.

The broad-based S&P 500 advanced 11.06 (0.62%) to 1,792.62, while the tech-rich Nasdaq Composite Index added 10.43 (0.26%) at 4,094.01.

Investors were cheered by strong earnings reports from Pfizer, Ford Motor and others, even as durable goods orders plummeted in December by 4.3% against analyst expectations of a rise.

Investors were watching the two-day monetary policy meeting of the US Federal Reserve starting Tuesday and President Barack Obama’s annual State of the Union address Tuesday evening.

Apple notched record iPhone and iPad sales, but shares tumbled 8.0% after the company said revenue will drop in the current quarter despite a major iPhone launch in China. (READ: Apple sells record number of iPhones, iPads)

Dow component Pfizer shot up 3.3% after quarterly earnings bested expectations by four cents at 56 cents per share.

US auto giant Ford rose 0.5% after reporting better-than-expected results that included higher sales in North America and a smaller loss in Europe.

Mining company Cliffs Natural Resources surged 7.5% after activist hedge fund Casablanca Capital took a 5.2% stake and lobbied the company to spin off its international assets and double the dividend.

Cliffs said it had held “productive preliminary conversations” with Casablanca and would consider its input.

Glass maker Corning fell 7.3% after saying that the fall in liquid crystal display (LCD) glass prices this quarter would be “higher than previous quarters” before moderating later in the year. Earnings of 29 cents per share bested expectations by a penny.

Bond prices were mixed. The yield on the 10-year US Treasury slipped to 2.76% from 2.77%, while the 30-year held steady at 3.68%, the same level as Monday. Bond prices and yields move inversely. – Rappler.com