Stocks Opened Higher on Strong Earnings

U.S. stocks opened higher on Wednesday, fueled by better-than-expected quarterly results from Microsoft (MSFT) and Morgan Stanley (MS). The Dow Jones Industrial Average lately rose 11.40 points, or 0.06% to 18,570.41. The S&P 500 climbed 2.97 points, or 0.14%, to 2,166.75. The Nasdaq Composite advanced 27.04 points, or 0.54%, to 5,063.41.

Microsoft quarterly profit beat expectations. Microsoft posted $3.12 billion in fourth-quarter net income, or 39 cents a share, compared with a loss of $3.2 billion, or 40 cents a share, a year ago. Revenue slid 7.1% to $20.61 billion and was $22.64 billion on an adjusted basis.

Morgan Stanley said its profit fell 12% in the second quarter as the company weathered volatile markets that affected its investing and corporate clients. Earnings and revenue, however, beat expectations. The bank’s net income declined to $1.58 billion, or 75 cents a share, from $1.81 billion, or 85 cents a share, a year ago. Revenue tumbled 8.6% to $8.91 billion.

Halliburton on Wednesday reported a second-quarter loss and less revenue than it earned in the same period last year, but said it thinks the North American oil market had turned around. The oil fields services company posted an adjusted loss per share from continuing operations of $0.14, better than analysts’ median estimate for a loss of $0.19. Revenue totaled $3.84 billion (versus $3.76 billion expected), a 35% year-over-year decline.

Brent oil prices edged higher on Wednesday in muted trading as investors awaited a clearer signal from weekly U.S. crude inventory data on whether a glut was easing in the world’s largest oil-consuming nation. Global benchmark Brent crude prices were up 5 cents at $46.71 a barrel at 1225 GMT. U.S. West Texas Intermediate (WTI) crude was down 13 cents at $44.52 a barrel.