US stocks close higher amid earnings

New York: US stocks closed higher as investors digested a batch of second-quarter earnings reports.

The Dow Jones Industrial Average on Wednesday increased 172.16 points, or 0.68 per cent, to 25,414.10. The S&P 500 was up 25.67 points, or 0.91 per cent, to 2,846.07, Xinhua news agency reported.

The Nasdaq Composite Index gained 91.47 points, or 1.17 per cent, to 7,932.24.

US planemaker Boeing posted earnings per share of $3.33 and revenue of $24.3 billion, both topping Wall Street’s estimates. But the Dow component stuck to its full-year earnings per share guidance to $14.3 to $14.5, below analysts’ expectations.

Another Dow component, Coca-Cola, reported adjusted earnings per share of 61 cents, topping the forecast as its diet drinks fuelled global growth. Its second-quarter revenue stood at $8.9 billion, also beating expectations.

General Motors cut its full-year profit outlook to 6 dollars per share from a range of $6.3 to $6.6 per share as steel and aluminium costs have been rising. Its second-quarter earnings per share and revenue were both higher than estimates.

This earnings season has been great so far. Second-quarter earnings are expected to increase 22 per cent from the same period last year. Excluding the energy sector, the earnings growth estimate declined to 18.2 per cent.