Stocks Rise, Bank of America Posts Higher Profit

U.S. stocks opened higher on Wednesday, as positive earnings results from Bank of America Corp. lifted sentiment.  The Dow Jones Industrial Average lately rose 49.70 points, or 0.30%, at 16,423.56. The S&P 500 added 5.42 points, or 0.29%, at 1,844.30. The Nasdaq Composite gained 17.60 points, or 0.42%, at 4,200.62.

U.S. producer prices recorded their largest increase in six months in December as the cost of gasoline rebounded strongly, but inflation pressures remained benign. The Labor Department said on Wednesday its seasonally adjusted producer price index rose 0.4 percent last month, the biggest rise since June, after slipping 0.1 percent in November.

Bank of America Corp (NYS:BAC), the No.2 U.S. bank, reported a stronger-than-expected quarterly profit, driven by a steep fall in mortgage losses and provisions to cover bad loans. Fourth-quarter net income applicable to shareholders rose to $3.18 billion (1.93 billion pounds), or 29 cents per share, from $367 million, or 3 cents per share, in the same quarter of 2012 when profit was dented by about $5 billion of mortgage-related charges.