Blue chips rose in early trading on Wednesday boosted by strong results from investment bank Morgan Stanley and Apple, but healthcare stocks weighed on the broader market.
Morgan Stanley jumped 2.3 percent to $31.15 after recording better-than-expected profit on strong fixed income trading.
Apple Inc shares rose nearly 6 percent to $258.85 one day after it posted quarterly results that crushed expectations on record iPhone sales and forecast for strong revenue growth.
Apple's quarterly report tell you that people are willing to pay a premium, and consumers do have money to spend, said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
A stronger consumer is a key driver of U.S. economic growth since spending accounts for roughly two-thirds of economic activity.
Banks have been a strong holding for at least a year, said Jankovskis, referring to Morgan Stanley's results. They're getting their knees underneath them with support from the (U.S. central bank's commitment to) low interest rates.
The KBW Banks index <.BKX> advanced 1.7 percent.
The Dow Jones industrial average <.DJI> rose 15.57 points, or 0.14 percent, to 11,132.63. The Standard & Poor's 500 Index <.SPX> edged up 0.29 point, or 0.02 percent, to 1,207.46. The Nasdaq Composite Index <.IXIC> gained 0.07 point to 2,500.38.
Healthcare shares pulled down the S&P 500, with Gilead Sciences Inc down 10.5 percent to $40.35 a day after cutting its full-year sales outlook. The S&P health care sector <.GSPA> fell nearly 1 percent, with Abbott Labs down 2 percent to $52 after it trimmed its current-year forecast.
(Editing by Jeffrey Benkoe)