* Morgan Stanley rises as profit surges
* Fed to release Beige Book at 2:00 p.m. ET
* IBM drops on bigger-than-expected revenue decline
* Dow down 0.06 pct, S&P up 0.27 pct, Nasdaq up 0.49 pct
(Updates to open)
By Yashaswini Swamynathan
April 19 The S&P 500 and the Nasdaq rose on
Wednesday, aided by banks and technology stocks, while a drop in
IBM weighed on the Dow.
The gain in financials was underpinned by a 3 percent jump
in shares of Morgan Stanley, which reported a surge in
Morgan Stanley's solid results provided some succor to
investors stung by weak results at chief rival Goldman Sachs
a day earlier.
Shares of Bank of America, JPMorgan and
Wells Fargo edged up slightly.
"This bounce today in U.S. equities is perhaps investors
looking beyond daily moves," said James Athey, senior investment
manager at Aberdeen Asset Management.
"While there has been some disappointment, the big picture
has not vastly changed. We're still talking about a global
economy which is doing better... and central banks that are
looking to normalize, and all of that should be supportive for
Shares of IBM sank 5 percent to $161.75 after the
company reported a bigger-than-expected decline in revenue for
the first time in five quarters. The stock was the biggest drag
on the Dow and the S&P.
At 9:44 a.m. ET (1344 GMT), the Dow Jones Industrial Average
was down 12 points, or 0.06 percent, at 20,511.28, the
S&P 500 was up 6.37 points, or 0.27 percent, at 2,348.56
and the Nasdaq Composite index was up 28.40 points, or
0.49 percent, at 5,877.87.
With Wall Street near record levels and worries over
President Donald Trump's ability to carry out his pro-growth
promises, investors are hoping first-quarter earnings will
justify pricey market valuations.
So far, the results have been promising. Of the 45 S&P 500
companies that have released results, nearly 76 percent have
topped earnings estimates, according to Thomson Reuters I/B/E/S.
Overall profits of S&P 500 companies are estimated to have
risen 10.7 percent in the quarter - the best since 2011.
Eight of the 11 major S&P 500 sectors were higher.
Utilities, real estate and consumer
staples, which have risen in the past few days, were
Facebook was up 1 percent and provided the biggest
boost to the S&P and the Nasdaq.
Intuitive Surgical was up 6.4 percent at $806.58
after the company reported higher-than-expected first-quarter
revenue and profit.
American Express, eBay and Qualcomm
are scheduled to report results after the market
In economic data, the Federal Reserve's Beige Book, which
will give a glimpse into economic conditions across the United
States, is due at 2:00 p.m. ET (1800 GMT).
Advancing issues outnumbered decliners on the NYSE by 1,792
to 760. On the Nasdaq, 1,680 issues rose and 605 fell.
The S&P 500 index showed 13 52-week highs and one low, while
the Nasdaq recorded 33 highs and nine lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by