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U.S. stocks open higher, eyes on Bernanke; Dow Jones up 0.20%

Published 05/22/2013, 09:44 AM
Updated 05/22/2013, 09:46 AM
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Investing.com - U.S. stocks opened higher on Wednesday, as markets awaited a highly-anticipated congressional testimony on the economy by Federal Reserve Chairman Ben Bernanke later in the day.

During early U.S. trade, the Dow Jones Industrial Average added 0.20%, the S&P 500 index rose 0.22%, while the Nasdaq Composite index edged up 0.10%.

Investors remained cautious ahead of testimony at the U.S. Joint Economic Committee by Ben Bernanke, amid speculation over whether the U.S. central bank will begin to scale back its asset purchase program this year.

The minutes of the Fed’s May meeting are to be released later in the trading day.

On Tuesday, St. Louis Fed President James Bullard said the Fed should continue its bond buying and make adjustments as the economy changes.

Financial stocks were broadly higher, as shares in Goldman Sachs added 0.21% and Bank of America gained 0.37%, while Citigroup and JP Morgan advanced 0.54% and 1.32% respectively.

On Tuesday, JPMorgan Chase Chief Executive Officer Jamie Dimon won more investor support this year than in 2012 to remain chairman, weathering a push to divide the roles after the largest U.S. bank suffered a record trading loss.

In the tech setor, NetApp surged 4.75% after the data-storage company said it’s cutting jobs and planning to return cash through stock buybacks and dividends.

Apple added to gains, rallying 1.73% after Chief Executive Tim Cook testified before Congress on Tuesday as a U.S. Senate report on the company's offshore tax structure said the iPhone maker has kept billions of dollars in profits in Irish subsidiaries to pay little or no taxes to any government.

On the downside, U.S.-traded Sony shares dropped 0.92% amid reports the company's board was discussing a proposal by Daniel Loeb’s Third Point LLC to spin off part of its entertainment business.

Among earnings, Lowe's surged 2.59% despite reporting quarterly earnings and revenue that missed analysts' expectations, while fellow retailer Target plummeted 3.03% after reporting sales that missed market forecasts.

Home builder Toll Brothers saw shares soar 7.44% after reporting higher-than-expected quarterly profit, thanks to an increase in orders and higher average selling prices.

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 slipped 0.22%, France’s CAC 40 edged down 0.22%, Germany's DAX inched 0.01% higher, while Britain's FTSE 100 added 0.25%.

During the Asian trading session, Hong Kong's Hang Seng Index dropped 0.45%, while Japan’s Nikkei 225 Index jumped 1.6%.


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