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U.S. stocks mixed on earning reports; Dow Jones up 0.13%

Published 07/21/2010, 10:19 AM
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Investing.com – U.S. stock markets were mixed Wednesday, after Morgan Stanley, the world's largest brokerage reported stronger-than-expected second-quarter earnings but search engine Yahoo posted a disappointing earnings report.

During early U.S. trade, the Dow Jones Industrial Average was up 0.13%; the S&P 500 index gained 0.03% and the Nasdaq Composite index fell 0.11%.

Earlier in the day, New York based Morgan Stanley stocks jumped 8.45% after the company said net income rose to USD 1.96 billion in the second quarter, surpassing all five of the company's larger competitors, including Goldman Sach's.

Goldman Sachs reported below-expected earnings on Tuesday after trading revenue fell 36% from the first quarter.

Shares in Yahoo tumbled 8.8% after the company posted below expected second-quarter earnings.

However strong earnings reports were posted by beverage giants Coca-Cola whose stocks advanced 1.63% after quarterly profit rose 16%, and United Technologies which climbed 0.93% after its second-quarter net profit rose 14%.

E-Bay and Starbucks were among some of the companies who were due to report after markets closed.

Also Wednesday, U.S. Federal Reserve chairman Ben Bernanke was to give his closely watched semi-annual report on the economy to the Senate Banking Committee.

Across the Atlantic, European stock markets were up: France’s CAC 40 rose 1.42%; Germany's DAX gained 0.88%; Britain's FTSE 100 advanced 1.83%; and the EURO STOXX 50 rose 1.17%.

Earlier Wednesday, Portugal's borrowing costs escalated as the country auctioned government bonds. The securities were issued at an average yield of 2.4% compared to a yield of 1.0% at an earlier auction in March.

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