By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market staged a
late-morning rebound and moved higher, shaking off worries about
Russia's military drills on the border with Ukraine.
Positive earnings from Apple Inc. and Caterpillar Inc. as well
as an upbeat report on capital spending boosted sentiment.
An 8% jump in Apple Inc's shares, the heaviest-weighed stock on
the S&P 500 and Nasdaq, accounted for gains on both.
The S&P 500 (SPX) rose 6 points, or 0.1%, to 1,881.79. The
Dow Jones Industrial Average (DJI) added 17 points, or 0.1%, to
16,529.05. The blue-chip index is less than 50 points off its
all-time high closing level. The Nasdaq Composite (RIXF), gained 23
points, or 0.6%, to 4,152.07.
Follow MarketWatch's live blog of today's stock-market
action.
"Apple's earnings last night and durable goods orders this
morning were driving the markets higher, up until Ukraine fears
resurfaced," said Kate Warne, investment strategist at Edward
Jones.
"Ukraine has been on the back burner and simmering, but today's
headline news was a reminder to investors that the pot can
sometimes boil over," she added.
Ahead of the market open, a jump in durable-goods orders
outweighed a bigger-than-expected rise in weekly jobless claims,
sending stock futures higher. Orders for durable goods such as
computers, aircraft and heavy machinery jumped 2.6% in March and
posted the biggest gain in four months, offering another sign that
the U.S. economy might be on the upswing after a winter-induced
lull. The jump was far above expectations.
The number of Americans who applied for unemployment benefits
last week rose to the highest level in April, but most of the bump
may have been related to a seasonal quirk tied to the Easter
holiday.
At the center of attention, however, was Apple Inc., (AAPL)whose
quarterly results topped Wall Street forecast and the company
announced a 7-for-1 stock split. Also: Apple's split could pave way
into Dow industrials, for whatever that's worth.
Shares jumped 8%, the best day for the stock since April 2012,
when it rose 8.9% and accounted for more than a 4-point gain on the
S&P 500, according to Howard Silverblatt, senior index analyst
at S&P Dow Jones Indexes.
Facebook(FB) trimmed earlier gains and was 1.7% higher. The
social network company posted first-quarter earnings that nearly
tripled and revenue that jumped 72%, with both numbers blowing out
forecasts.
Ahead of the open, economic bellwether Caterpillar (CAT) topped
forecasts reporting a 4.8% increase in profits during the first
quarter. Shares rose 2.9%. But CEO and chairman Doug Oberhelman is
concerned about the situation in Ukraine.
"We are very concerned about the situation in Ukraine and
Russia. We are hoping for a peaceful resolution, but business
confidence around the world could dampen, and trade and world GDP
could slow should the situation deteriorate. The global economy
remains fragile, and as such, one or two setbacks could create
substantial downside risk for the global economic recovery."
General Motors (GM.XX) shares rose 1.5% after the company saw a
profit drop on recall charges, but far exceeded analyst
expectations, with earnings of 29 cents a share and revenue of
$37.4 billion.
Aetna Inc. (AET) rose 5.3% after its results, and 3M (MMM)
slipped 1.5% after missing expectations on revenue.
Shares of Zimmer Holdings Inc. (ZMH) jumped 15% on news it will
buy Biomet in a deal valued at $13.35 billion.
On the downside, shares of Qualcomm Inc. (QCOM)fell 4.2% after
the wireless-technology firm reported an earnings view that beat
forecasts, but missed on sales.
Among companies reporting after the closing bell are Microsoft
Corp. (MSFT), Starbucks Corp. (SBUX) and Amazon.com Inc. (AMZN).
Microsoft earnings: First time for new CEO Nadella.
Overseas, Wall Street's pullback drove some losses across Asia,
with the Nikkei 225 index off nearly 1%. In Europe most benchmarks
rebounded from losses and moved higher.
In other markets, crude-oil prices (CLM4) rose, while gold
(GCM4) also gained and the ICE dollar index (DXY), a gauge of its
strength against six rivals, slipped.
More must-reads from MarketWatch:
Apple CEO Tim Cook discusses earnings, buyback, China, iPhone
sales (recap)
Will Apple's cash return get Icahn to shut up?
Seven cars later, here's how 'Tesla Jens' earns his nickname
Subscribe to WSJ: http://online.wsj.com?mod=djnwires