U.S. Stocks Open Higher

By Alexandra Scaggs 

U.S. stocks rose on Wednesday, with technology shares rebounding after a strong quarterly report from Apple Inc.

The Dow Jones Industrial Average advanced 55 points, or 0.3%, to 17442. The S&P 500 gained 10 points, or 0.5%, to 2040, and the Nasdaq Composite Index jumped 47 points, or 1%, to 4728.

Investors are awaiting an afternoon statement from the Federal Reserve's policy-setting committee, as its two-day meeting wraps up Wednesday. The central bank isn't expected to make any policy changes. Investors will be looking for any clues about when officials could raise interest rates, a move widely expected this year.

Tech stocks led the stock-market advance, with the tech sector of the S&P 500 up 2%. Apple rallied 7.8% after "staggering" demand for iPhones helped the company beat even the most bullish Wall Street forecasts.

"Apple put up very strong numbers...[which is] good following a day that was a relative bloodbath," said Brian Fenske, head of sales trading at ITG.

Tech stocks didn't fully recover from their 3.3% drop on Tuesday, when a disappointing earnings report from Microsoft Corp. sent that stock down more than 9%. Investors fret that a strengthening dollar and weak international demand could damage some tech companies' bottom lines.

Yahoo Inc. gained 4.3% after announcing it would spin off tax-free its holdings in Alibaba Group Holding Ltd. Its per-share earnings beat analyst forecasts.

A pair of Dow components led the average higher after reporting better-than-expected quarterly results.

Boeing Co. jumped 3.8% after it posted better-than-expected quarterly results. But the company gave a weak outlook for profit in 2015, citing the possibility that the dive in oil prices could damage demand for fuel-efficient planes.

AT&T Inc. rose 2.2% after fourth-quarter earnings and sales narrowly beat Wall Street's expectations. But the telecommunications company's results indicated some strain from higher competition among carriers.

The gains came amid tumult in Greek markets. Bonds and stocks there continued to slide after last weekend's election of a new leftist government. Investors fear that Syriza's victory could lead to confrontation between the country and its creditors. Stocks of other indebted countries fell as well, with Spain's IBEX 35 down 1.2% and Italy's FTSE MIB slipping 0.4%. Germany's DAX Index gained 0.6%.

In other markets, gold futures slipped 0.6% to $1284.60. Treasury prices rose, pushing the yield on the 10-year note down to 1.807%. Crude-oil futures resumed their monthslong decline, slipping 2.4% to $45.14 a barrel.

Write to Alexandra Scaggs at [e-mail]

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