The Standard & Poor's 500 and Nasdaq indexes edged up on Wednesday as investors responded positively to early earnings results as the quarterly reporting period got under way.
After the close, aluminum company Alcoa Inc
Expectations for the quarter have been high following the second quarter's strong showing, where more than 70 percent of companies beat Wall Street's consensus estimates.
The market has given earnings the benefit of the doubt and moved up in anticipation of continued improvement, said Keith Hembre, chief economist at First American Funds in Minneapolis. Expectations have become quite robust lately.
Costco Wholesale Corp
The Dow Jones industrial average <.DJI> was down 5.67 points, or 0.06 percent, at 9,725.58. The Standard & Poor's 500 Index <.SPX> was up 2.86 points, or 0.27 percent, at 1,057.58. The Nasdaq Composite Index <.IXIC> was up 6.76 points, or 0.32 percent, at 2,110.33.
The mild moves follow two days of strong gains for the market, helped by optimism about third-quarter profits.
Stocks also responded well to a successful 10-year Treasury note auction, which boosted confidence in U.S. assets, including stocks and bonds.
Alan Lancz, president of Alan B. Lancz & Associates investment advisers in Toledo, Ohio, said of the auction: It's a positive, as long as interest rates stay low and ...there's demand overseas.
On the Nasdaq, Verisk Analytics Inc
Declining shares included telecommunications companies. The Federal Communications Commission chairman praised moves by top wireless companies to open their networks, and the S&P telecom services index <.GSPL> slid 2.9 percent.
Shares of seed developer Monsanto Co
Volume was below average on the New York Stock Exchange, with 1.09 billion shares changing hands, under last year's estimated daily average of 1.49 billion, while on the Nasdaq, about 2.23 billion shares traded, about even with last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of 15 to 13, while declining stocks were about even with advancers on the Nasdaq.
(Additional reporting by Ryan Vlastelica; Editing by Padraic Cassidy)