Strong earnings lift stocks in early trading
NEW YORK — Stocks are heading higher in early trading on stronger earnings from Apple Inc., UnitedHealth Group Inc., and other companies
UnitedHealth rose 9 percent in early trading. The country's second-largest health insurer said profits rose 13 percent as more employees signed up for coverage.
The Dow Jones industrial average rose 10 points, or 0.1 percent, to 12,463 in morning trading.
The Standard & Poor's 500 index rose 5 points, or 0.4 percent, at 1,335. The Nasdaq composite index rose 11 points, or 0.4 percent, at 2,813.
The Travelers Companies Inc. rose 3 percent, leading the 30 companies in the Dow Jones industrial average, after reporting stronger earnings and a 14 percent dividend increase. The commercial insurer benefited from a drop in losses from catastrophe claims and more companies buying insurance.
Apple rose 3 percent. The company reported sales and income late Wednesday that came in way ahead of analysts' estimates. The company sold 18.7 million iPhones in the latest quarter, millions more than expected. Verizon Wireless started selling the phones in February, ending three and a half years of exclusivity by AT&T Inc.
Verizon Communications Inc. fell 2 percent, after results failed to match Wall Street's expectations. Verizon said it doubled its wireless subscribers from a year ago, helped by the sale of a half-million iPhones. Verizon Communications is a joint venture partner with Vodafone in Verizon Wireless.
Biogen Idec Inc. rose 17 percent, making it the top performer in the S&P 500 index. Sales of its multiple sclerosis drug Tysabri helped net income rise 35 percent, well ahead of what analysts were expecting.
The stronger earnings results were tempered by a weaker-than-expected job market report. The Labor Department said Thursday that the number of people who applied for unemployment benefits fell last week to 403,000. Economists had expected a larger drop.
Better earnings from Intel Corp. and other technology companies sent stocks higher Wednesday and drove the Dow Jones industrial average to a new 2011 high. The Nasdaq composite index gained 57 points, its biggest one-day jump in six months.
The gains turned all three indexes positive for the week. Stocks took a steep drop Monday after Standard & Poor's warned that it might lower its AAA rating on U.S. government debt.