Stocks added to their gains Wednesday, with the S&P 500 climbing back above 1,500 and the Dow clawing back above 14,000, lifted by a batch of upbeat earnings and following a cheery pending home sales report.
The Dow Jones Industrial Average advanced, led by JPMorgan and Boeing, after posting a triple-digit gain in the previous session.
The S&P 500 and the Nasdaq also added to their gains. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell below 15.
All 10 key S&P sectors turned higher, led by materials and industrials.
"We're in a sideways process with the Dow around 14,000 and we'll probably be around here for a while," said Jeff Kleintop, chief market strategist at LPL Financial. "Profit and economic growth may be softer in Europe and we're probably due for a pullback, but I don't think it's going to be a big one. You want to buy into the dips and put capital to work."
On the economic front, pending home sales jumped 4.5 percent in January to 105.9, according to the National Association of Realtors, hitting its highest since April 2010. Economists in a Reuters survey expected a 1.5 percent gain compared with a 4.3 percent drop in the previous month.
Weekly mortgage applications declined for a third-consecutive week even as rates eased, according to the the Mortgage Bankers Association.
Durable goods orders declined 5.2 percent in January after gaining 4.3 percent in the prior month, according to the Commerce Department. But excluding transportation, durable goods orders increased 1.9 percent, the biggest gain since December 2011.
Flower Foods spiked after the packaged bakery goods company won the bid for Hostess' Wonder bread in a deal worth $360 million, CNBC learned.
In a busy day for retail earnings, Target posted quarterly results that topped expectations for the holiday quarter. But shares gave up their initial gains amid investor concern over the company's ability to reach its forecast, given its large-scale expansion plans in Canada.
Dollar Tree soared to lead the S&P 500 gainers after the discount retailer posted earnings and revenue that edged past expectations.
And TJX reported quarterly results that beat Wall Street expectations. In addition, the company announced a dividend hike and a new share repurchase program.
Coach jumped amid unconfirmed reports that the upscale retailer is exploring a sale of itself. Separately, the retailer said it has hired a former Nike executive to oversee the transformation of its stores.
Apple dipped ahead of the company's shareholders meeting. Shares gained in the previous session amid speculation the iPhone maker could announce plans to enhance shareholder value. Still, the stock has plunged more than 35 percent since hitting an all-time high of $705 back in September and has been trading below its 50-day moving average for nearly five months.
First Solar plunged nearly 15 percent after the solar panel maker posted revenue and outlook that fell short of Wall Street expectations. In addition, Baird cut its rating on the company to "neutral" from "outperform" and lowered its price target to $25 from $30.
Federal Reserve Chairman Ben Bernanke appeared before the House Financial Services Committee in his second day of testimony.
On Tuesday, Bernanke Bernanke said the Fed will continue its quantitative easing (QE) program until clear signs of an economic recovery are visible and also urged lawmakers to avoid sharp spending cuts due to kick in at the beginning of March.
"There was little in the way of surprise yesterday by Chairman Bernanke who, as expected, gave a stern defense of QE as an important monetary policy tool in the current crisis," wrote Derek Halpenny, European head of global markets research at the Bank of Tokyo-Mitsubishi.
European shares closed higher, thanks to a successful bond auction in Italy.
Earlier in the day, Anheuser-Busch Inbev forecast a weak start to the year in the U.S. and Brazil, after posting slightly lower-than-expected earnings in the fourth quarter of 2012. The Belgian brewer is the world's biggest beer maker and produces Budweiser and Stella Artois.
Meanwhile, Franco-German defense firm EADS predicted higher profits in 2013 as it confirmed an upswing in 2012, driven by efforts to cut costs, and strong deliveries of passenger jets. EADS shares rose by around five percent on the news. U.S. rival Boeing posted results in January that also topped expectations.
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Source: http://www.nbcnews.com/business/stocks-climb-higher-midday-trading-1C8585251
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