U.S. stocks took a slow upturn on Wednesday, on better-than-expected profits airplane manufacturer Boeing Co., while technology and industrial companies also raised investors optimism by releasing positive earning results. The Standard & Poor's index took a downturn at midday trading.
Boeing Co. and Philip Morris International Inc. pushed the market higher their results bolstered speculation that overseas demand will prevent a recession in the U.S. Helping to bolster the tech sector, VMWare Inc. released upbeat first-quarter earnings late Tuesday, while investors speculated that Apple Inc would post robust quarterly results after the close of the bell later today.
The Standard & Poor's 500 Index dropped 1.47 points, or 0.1 percent, to 1,374.471 at 12:39 a.m. in New York. The Dow Jones Industrial Average added 1 point, or 0.1 percent, to 12,721.21. The Nasdaq Composite Index increased 14.27 or 0.6 percent, to 2,391.21
Boeing, the world's second biggest commercial airplane manufacturer, said Wednesday its first quarter profit was better expected at $1.2 billion, a 38 per percent gain from last year as it increased deliveries to airlines and built a record backlog of orders. The manufacturer reaffirmed its 2008 earnings forecast between 5.70 and 5.85 dollars per share. The company's shares added 4.9 percent to $82.44.
Tobacco maker, Philip Morris, posted first-quarter profit which beat analysts estimation, citing stronger sales in Indonesia, Pakistan and Mexico. Phillip Morris added $1.37 to $51.44.
Apple Inc. will take the earnings spotlight with its second-quarter report which will be released today, with Macintosh computer and iPhone sales expected to be higher from last quarter.
According to estimates from FactSet Research, Apple will earn $1.11 a share on $6.97 billion in sales for the quarter, up from 87 cents a share and revenue of $5.26 billion the same period a year ago. The company's shares were up 1.7 percent to $162.86.