Investing.com - U.S. stocks opened higher on Wednesday, boosted by strong corporate earnings reports, while investors awaited the outcome of a highly anticipated vote on the U.S. debt ceiling.
During early U.S. trade, the Dow Jones Industrial Average rose 0.37%, the S&P 500 index eased up 0.01%, while the Nasdaq Composite index climbed 0.50%.
Markets were eyeing U.S. budget negotiations after Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit allowing the government to borrow enough to meet its obligations during that period.
Among earnings, Google surged 5.35% after reporting on Tuesday, after the closing bell, that revenue from its core Internet business outpaced many analysts' expectations during the holiday quarter, while advertising rates fell less than in previous periods.
IBM also trended sharply higher, rallying 4.79%, after the company gave a better than expected 2013 outlook after a solid fourth quarter that analysts say has more to do with Big Blue's smooth execution than a vibrant tech spending environment.
In addition, WellPoint jumped 1.03% after the second-biggest U.S. health insurer reported fourth-quarter profit that beat analysts' estimates as medical costs were lower than anticipated.
However, the company gave a 2013 earnings forecast that was less than analysts expected.
Shortly before the start of U.S. trade, United Technologies beat earnings expectations, even though profit actually declined, sending shares down 0.14%, while McDonald's topped earnings and revenue expectations, but warned that it sees sales lower early in the first quarter.
Shares in the fast food chain added 0.20% after the open.
Elsewhere, financial stocks were mixed, as shares in Bank of America inched up 0.09% and Citigroup rose 0.19%, while JP Morgan and Goldman Sachs declined 0.28% and 0.26% respectively.
Earlier in the day, JPMorgan Chief Executive Jamie Dimon apologized to shareholders for the USD6 billion loss caused by the so-called "whale" trade, calling it a "terrible mistake," but said the bank has moved on and is still highly profitable.
Other stocks in focus included Netflix and Sandisk due to report earnings later in the U.S. session, as well as Apple after the closing bell.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 fell 0.27%, France’s CAC 40 dropped 0.51%, Germany's DAX edged up 0.07%, while Britain's FTSE 100 added 0.20%.
During the Asian trading session, Hong Kong's Hang Seng Index edged down 0.1%, while Japan’s Nikkei 225 Index tumbled 2.08%.
Later in the day, the World Economic Forum was to continue for a second day in Davos, Switzerland.