US stocks higher during opening hour, corporate earnings take center stage

Major US equity indices witnessed a positive opening on Wednesday but the gains were capped as investors assessed mixed quarter earnings reports.

Positive momentum led by a surge in quarterly profit for Morgan Stanley was offset by a sharp drop in IBM Corp shares, which fell sharply after an earnings miss. Disappointing quarterly earnings report from Goldman Sachs and Johnson & Johnson pulled the indices lower on Tuesday.

At the time of writing this report, the Dow Jones Industrial Average was flat around 20,525, while the broader S&P 500 Index added 8-points to 2,350. Meanwhile, tech-heavy outperformed the broader indices and gains in excess of 30-points and jumped to 5,880.

There were no macroeconomic data due for release on Wednesday and hence, assessment of the incoming corporate results would be a key determinant of the overall sentiment. With investors punishing stocks failing to meet street expectations, it would be interest to see if the positive news is able to drive the market higher or is seen as an opportunity to take some profits off the table.