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Overnight Markets: Wall Street gains on earnings data

Overnight Markets: Wall Street gains on earnings data

Wall Street gained on Tuesday, with the S&P 500 hitting an intraday record, boosted by better-than-expected inflation and housing reports and amid upbeat earnings reports.

The Dow Jones industrial average rose 62 points or 0.36%, to end at 17,114. The S&P 500 gained 10 points or 0.5%, to 1,984. The Nasdaq Composite added 31 points or 0.71%, to 4,456.

The US Consumer Price Index rose in June, although the overall trend pointed to a slow buildup of inflation pressures, conditions that could allow the US Federal Reserve to keep gradually easing its stimulus programmes.

Investors continued to pay close attention to unstable regions abroad, and while violence persisted in the Gaza Strip, hopes rose for an easing of tension in Ukraine.

In corporate news, Verizon Communications Inc rose 0.6% after the company reported revenue that topped expectations.

Chipotle Mexican Grill was the S&P 500's biggest percentage gainer, up 11.8% a day after the burrito chain reported a steep jump in profit.

Netflix Inc reported a quarterly profit that more than doubled on Monday after the market closed. However, on Tuesday, Netflix shares fell 4.6% as the company's plans to expand in Europe were seen as eroding profits.

After the closing bell, Microsoft Corp reported a rise in revenue, though earnings fell in part due to the effect of incorporating the handset business of Nokia, which it acquired in April. Microsoft's stock was flat in extended-hours trading.

Apple Inc reported third-quarter earnings that topped expectations, though revenue missed forecasts. Apple's stock initially fell in after-hours trading, though it subsequently turned higher, rising 0.3%.

During Tuesday's regular session, homebuilders' stocks represented one of the strongest sectors. D.R. Horton Inc rose 1.9%, while Beazer Homes advanced 2%.

In Asia, shares advanced on Wednesday in late morning trade as US inflation data damped concerns interest-rate increases will be brought forward.

The MSCI Asia Pacific Index gained 0.4% to 148 as of 10:21 a.m. in Hong Kong. Hang Seng Index and China’s Shanghai Composite Index both added 0.5%. Singapore’s Straits Times Index gained 0.5%. Japan’s Topix Index and South Korea’s Kospi index were little changed. Australia’s S&P/ASX 200 Index advanced 0.9%. Taiwan is closed due to a typhoon.

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