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U.S./World News

Major markets little changed after economic news
July 30, 2014 14:54 GMT

Eds: Updates with opening of US trading. With AP Photos. By MATTHEW CRAFT and YURI KAGEYAMA AP Business Writers

NEW YORK (AP) -- U.S. stocks crept higher following news that the economy surged ahead in the spring. Trading was quiet as investors waited for a statement from the Federal Reserve later Wednesday. Most world markets were mixed.

KEEPING SCORE: The Dow Jones industrial average fell 14 points, or 0.1 percent, to 16,898 as of 10:42 a.m. The Standard & Poor's 500 index edged up two points, or 0.1 percent, to 1,972. The Nasdaq gained 20 points, or 0.5 percent, to 4,463.

THE ECONOMY: The Commerce Department said the economy grew at a 4 percent clip in the three months ending in June, helped by rising spending. A recovery in housing and larger outlays by state and local governments drove the gains.

TWEET: Stronger revenue from Twitter sent the company's stock up 21 percent in early trading. The social-networking company reported a quarterly loss late Tuesday but its revenue more than doubled over the year, thanks to new advertising tools and a surge in traffic from soccer fans following the World Cup. Twitter's stock surged $8 to $46.61.

LAYOFFS AND PROFITS: Amgen said Tuesday that it plans to lay off up to 15 percent of its worldwide workforce and close four sites, even as it reported second-quarter results that trounced Wall Street expectations. The drugmaker also raised its forecasts for its 2014 profit and sales. Amgen's stock climbed $6.59, or 5 percent, to $129.90.

BUSY WEEK: It's a busy week for economic news. Federal Reserve officials wrap up a two-day meeting Wednesday afternoon. There's a report on China's manufacturing industry out Thursday, and the U.S. Labor Department releases its monthly jobs report on Friday.

ONE VIEW: "U.S. data will be the main event," says Chris Weston, market strategist at IG in Melbourne. Sanctions against Russia remain a concern. Expectations of more penalties had dampened stocks over the past two weeks. The U.S. and Europe on Tuesday announced tougher sanctions against Russia in response to an attack on a Malaysian airliner over an area of Ukraine controlled by pro-Russian separatists.

EARNINGS PARADE: Wall Street is in the middle of second-quarter earnings season, when big companies turn in their springtime results and tell investors how they think the rest of the year will shape up. This week, ExxonMobil and Procter & Gamble are among the heavyweights posting earnings.

NOT BAD: So far, the news has been much better than many expected. More than half of the companies in the S&P 500 have turned in results, and roughly seven out of 10 have reported higher profits than analysts projected, according to S&P Capital IQ.

EUROPE: Major markets in Europe barely moved. Germany's DAX inched up 0.1 percent and France's CAC 40 dipped 0.1 percent. Britain's FTSE 100 fell 0.1 percent.

OTHER MARKETS: The report of stronger U.S. economic growth sent prices falling for Treasurys, driving U.S. government bond yields higher. The yield on the 10-year note jumped to 2.52 percent from 2.46 percent late Tuesday, a big move in the usually placid bond market. Benchmark U.S. crude for September delivery rose 49 cents to $101.53 a barrel.

AP Business Writer Yuri Kageyama reported from Tokyo.

 
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