Strong company earnings helped edge U.S. stocks higher in afternoon trading Wednesday, on pace to bounce back from a mixed finish a day earlier. Investors also welcomed news that Time Warner received a takeover offer from Twenty-First Century Fox, the latest in a wave of corporate deal news this year.
KEEPING SCORE: The Dow Jones industrial average rose 63 points, or 0.4 percent, to 17,124 as of 1:22 p.m. Eastern time. The Standard & Poor's 500 rose six points, or 0.4 percent, to 1,980. The Nasdaq composite added 16 points, or 0.4 percent, to 4,432.
THE QUOTE: "We've seen some pretty good earnings reports across different sectors," said Dave Roda, regional chief investment officer for Wells Fargo Private Bank in the Southeast. "We're seeing a lot of (corporate deals), we're seeing a lot of share buyback announcements, things that really do help prop up markets."
MURDOCH BID: Time Warner soared 16.8 percent after Rupert Murdoch's Twenty-First Century Fox disclosed it made a bid for the media giant last month. Fox said Time Warner rejected its offer. The New York Times is reporting that that bid totaled $80 billion, or $85 in stock and cash for each Time Warner share. Time Warner added $11.90 to $82.91, while Twenty-First Century Fox fell $1.38, or 3.9 percent, to $33.81.
WHEELIN' AND DEALIN': The combination of cheap financing and a tough global economy has made acquisitions an attractive option for companies to expand their business, spurring a large number of corporate deals this year. Fox's proposed bid for Time Warner is a continuation of the nearly record amount of mergers and acquisitions going on this year, said David Chalupnik, head of equities at Nuveen Asset Management.
"Companies are looking at 'how do we grow in this low-growth environment?' and they're turning to M&A," he said.
APPLE DEAL: Apple and IBM rose after the former rivals announced late Tuesday that they will work on mobile applications together in a bid to sell more iPhones and iPads to corporate customers. Apple rose 67 cents, or 0.7 percent, to $95.99. IBM added $4.67, or 2.5 percent, to $193.16.
INTEL SURGE: Intel rose $2.31, or 7.3 percent, to $34.02. The chipmaker reported late Tuesday that earnings jumped 40 percent in the latest quarter, beating expectations, as companies picked up the pace of office PC replacement.
BUILDING CONFIDENCE: The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday rose this month to the highest level since January. Builders said they were more optimistic about selling homes in the second half of the year. Homebuilders' growing confidence in the housing market comes as U.S. sales of new homes have picked up in recent months. The report sent shares of homebuilders mostly higher, led by M/I Homes. The stock rose 94 cents, or 4.1 percent, to 23.85.
BANK WOES: Bank of America fell 29 cents, or 1.8 percent, to $15.52 after reporting second quarter earnings that were hit by higher litigation expenses. The Charlotte, North Carolina-based bank earned 19 cents per share compared with 32 cents a year ago.
STILL STRUGGLING: Yahoo tumbled 4.6 percent after the Internet pioneer reported late Wednesday that its second-quarter earnings and revenue declined. The company's revenue forecast for the current quarter fell short of Wall Street's expectations. Yahoo's display advertising sales have slumped amid competition from Google and Facebook. The stock slid $1.64 to $33.97.
SECTOR WATCH: Eight of the 10 sectors in the S&P 500 rose, led by technology stocks. Health care lagged the most.
BONDS AND OIL: The yield on the 10-year Treasury note slipped to 2.53 percent from 2.55 percent late Tuesday. Benchmark U.S. crude for August delivery rose $1.30 at $101.26 a barrel in electronic trading on the New York Mercantile Exchange.
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AP Business Writer Bernard Condon contributed to this story.
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