NEW YORK —
The stock market stabilized Wednesday after one of its biggest sell-offs of the year. Major indexes rose modestly.
In the first half-hour of trading, the Dow Jones industrial average climbed 21 points to 13,124. The Standard & Poor’s 500 index rose four points to 1,416 and the Nasdaq composite index rose 15 to 3,005.
Facebook appeared poised for its best day since its stock market debut in May. The company said late Tuesday that 14 percent of its advertising revenue came from mobile devices, allaying some investor concerns.
The stock climbed $4.01, or 21 percent, to $23.51. Facebook has swung widely since its IPO at $38 a share, and has traded as low as $17.55.
Boeing, one of the 30 stocks in the Dow, raised its profit expectation for the year. It said it expects to earn $4.80 to $4.95 per share, up from a previous estimate of $4.40 to $4.60. The stock rose $1, or 1.4 percent, to $73.82.
Another Dow stock, AT&T, said it added the fewest wireless customers since 2003, far behind Verizon Wireless. AT&T still made 63 cents per share in the last quarter, beating the estimates of financial analysts. The stock fell 36 cents to $34.64.
Lower corporate revenue and lower expectations for the rest of the year drove a big decline in stocks Tuesday. The Dow fell 243 points, its third-biggest decline of the year. DuPont, 3M, UPS and Xerox all reported lower revenue than a year ago.
A measure of manufacturing in China, the world’s second-largest economy after the United States, improved this month to a three-month high. China’s white-hot economic growth has been slowing.
The higher open on Wall Street followed gains in European stock markets. Benchmark indexes rose 0.5 percent in Germany, 0.7 percent in France and 0.3 percent in Britain.
In the U.S., bond prices inched lower, sending yields up. The yield on the benchmark 10-year Treasury note climbed to 1.79 percent from 1.76 percent late Tuesday.
Among other stocks in the news:
— Netflix plunged $9.53 a share, 14 percent, to $58.69. Late Tuesday, it slashed its prediction for how many U.S. video-streaming subscribers it would add this year to 4.7 million to 5 million. It had predicted it would add as many as 7 million.
— Dow Chemical rose $1.33, or 5 percent, to $29.88. The company announced a wide-ranging restructuring plan late Tuesday that includes cutting 2,400 jobs and closing 20 manufacturing facilities. The company cited slowing economic growth in Europe and elsewhere.
— Tempur-Pedic plunged $7.13 to $24.74, a loss of 22 percent. The maker of premium memory foam mattresses reported revenue that was well below the estimates of Wall Street analysts. The company also cut its estimates for full-year profits and revenue.
Business
Related Photos
Discussion
Stocks stabilize on Wall Street after a sell-off
- Business
-
-
Stock market falls as traders fear stimulus cuts
Stocks are falling after the Federal Reserve gave a slightly more optimistic outlook for the U.S. economy, which investors took as a hint that the bank was nearer to a decision to reduce its economic stimulus program.
-
Top UK court overturns sanctions on Iranian bank
Britain’s Supreme Court quashed sanctions against an Iranian bank penalized over its alleged links to Iran’s nuclear weapons program, saying Wednesday that Bank Mellat had been arbitrarily singled out.
-
Netflix to expand to Netherlands later this year
Netflix is going Dutch.
-
World Bank highlights climate-poverty link
The World Bank says it will increasingly view its efforts to help developing countries fight poverty through a “climate lens.”
-
Japan formally OKs new nuke safety requirements
Japan’s nuclear watchdog formally approved a set of new safety requirements for atomic power plants Wednesday, paving the way for the reopening of facilities shut down since the Fukushima disaster in a move critics charge is too hasty.
-
World Food Prize goes to 3 biotech scientists
The World Food Prize Foundation on Wednesday took the bold step of awarding this year’s prize to three pioneers of plant biotechnology whose work brought the world genetically modified crops.
-
Investors look for answers on economy from Fed
Worry and speculation have consumed investors since Chairman Ben Bernanke spoke to Congress last month about the Federal Reserve’s drive to keep long-term interest rates at record lows.
-
Dish won’t submit revised bid for Sprint
Satellite TV operator Dish Network Corp. said Tuesday it would not submit a revised bid for Sprint, leaving the path open for the wireless carrier to accept what it already considers a superior offer from Japan’s Softbank.
-
West Virginia mine safety lab creates disasters to train
Orange flames lick at the roof of the coal mine, heat building and visibility dropping as smoke begins to fill the underground passageway.
-
Stocks edge lower as investors wait on Fed
Stocks edged lower in early trading on Wall Street Wednesday as investors waited for word from the Federal Reserve.
- More Business Headlines
-
Fmr. TWA Flight 800 Investigators Want New Probe
Raw: Heat, Spurs Back on Court Ahead of Game 7
Dolce and Gabbana Convicted of Tax Evasion
Paris, Prince Depositions Used in Jackson Trial
Coiffed Cattle Get Their Close-up
In Berlin, Obama Channels Cold War Activism
Police at Patriots Tight End's Home for 2nd Day
Fed Suggests Bond Purchases Could Slow
AP: DOJ Broke Own Rules Seizing Phone Records
Raw: Baby White Rhino Debuts at Australian Zoo
Time Lapse: Rebuilding Bridge Post-collapse
Ohio Woman Accuses 3 of Holding Her Captive
Hunt for Ex-Teamster Boss Hoffa's Remains Ends
Aug. Trial Set for Ohio Man in Triple Kidnapping
Car Crash in NYC's East Village Injures 8
