* U.S. stocks advance, techs up before Apple results after
* IBM up on earnings, outlook; S&P 500 index lingers at
* Yen extends gain against dollar; BoJ action seen lacking
* Gold slips as U.S. debt talks make progress
By Ellen Freilich
NEW YORK, Jan 23 U.S. and European stocks moved
higher on Wednesday, helped by strong earnings reports and signs
American lawmakers were close to raising the federal debt limit.
Technology shares were a focus, with Apple earnings
due late in the day, following strong results from IBM and
Google on Tuesday.
Shares of IBM, the world's largest technology
services company, propelled the Dow Jones industrial index
higher, rising 5.1 percent after the company outlined a
better-than-forecast outlook for 2013 and posted
better-than-expected fourth-quarter earnings and revenue.
"The earnings season so far has been good with a majority of
companies reporting better-than-expected results," said Brian
Gendreau, market strategist at Gainesville, Fla.-based Cetera
Financial Group, with $20 billion in assets under management.
On Wall Street, the Dow Jones industrial average was
up 53.99 points, or 0.39 percent, at 13,766.20. The Standard &
Poor's 500 Index was down 0.20 point, or 0.01 percent, at
1,492.36. The Nasdaq Composite Index was up 8.85 points,
or 0.28 percent, at 3,152.03.
The MSCI index of global markets was off 0.13
percent. But Europe's FTSEurofirst 300 index was up 0.2
percent, near a 22-month high on Wednesday. Germany's DAX
, which is close to its 2008 high, was up 0.15 percent,
and Britain's FTSE 100 index gained 0.3 percent, having
briefly reached a 2013 peak.
Some of the money shifting into stocks came from Treasuries
whose low yields lack appeal to investors, Gendreau said.
Nevertheless, Treasuries made slim gains with the benchmark
10-year note up 4/32 in price, its yield at 1.83
"There's still a tsunami of money coming into the Treasury
market from foreign central banks and the Federal Reserve,"
In foreign exchange markets, the yen rose against the dollar
and euro, still reacting to Bank of Japan monetary easing at the
start of the week, which fell short of expectations.
The yen had weakened against the dollar for two months as
investors priced in prospective monetary accommodation from the
Bank of Japan. Over the last three days it has risen 1.9 percent
versus the dollar, the biggest three-day gain in seven months,
but it still is down 11 percent from its mid-November levels.
The BoJ this week lifted its inflation target to 2 percent
and promised to buy assets. But the starting date for the
purchases, not before 2014, disappointed investors who had
expected the central bank to act with greater urgency.
The dollar fell 0.1 percent to 88.58 yen, off a
2-1/2-year high of 90.25 yen on Monday.
The euro drifted higher against the dollar as sentiment
toward euro zone assets improved and investors got ready for
euro area banks to repay part of the loans they took from the
European Central Bank last year.
Investors' improved view of the euro zone was evident in a
comeback for Portugal's bond market. On Wednesday, Portugal's
first bond sale since its 2011 rescue drew strong demand,
bolstering hopes the country can make a full market return that
would allow it to call on further European Central Bank support.
Tuesday's 10-year bond sale by Spain was swamped with demand
from foreign investors.
The euro slipped against the yen to 118.05 yen.
Against the dollar, it rose 0.1 percent to $1.3333, in
sight of last week's 11-month high of $1.3404.
Gold fell further from this week's one-month high after a
report showing a rise in euro zone consumer confidence capped
investors' interest in the metal.
Spot gold fell 0.2 percent to $1,688 an ounce.
Traders said progress in talks about the U.S. debt limit reduced
gold's appeal as a safe haven, offsetting the influence of this
week's monetary easing promise from the Bank of Japan.
Congressional talks on raising the U.S. debt ceiling, seen
as a potential threat to recovery of the world's leading
economy, have made some progress. The House of Representatives
plans to pass a bill on a nearly four-month extension of the
Brent crude futures edged up and U.S. crude dipped on
Wednesday. Improved British employment data lent support, while
a lower economic growth forecast from the IMF limited gains.
The IMF trimmed its 2013 global growth forecast to 3.5
percent from the 3.6 percent it projected in October, but said
it looked for 4.1 percent expansion in 2014.
Brent March crude was up 39 cents at $112.81 a
barrel. U.S. March crude was down 29 cents at $96.39.
Oil investors awaited weekly reports on U.S. oil inventories
delayed a day by Monday's U.S. holiday. The American Petroleum
Institute's report is due at 4:30 p.m. (2130 GMT) on Wednesday
and the U.S. Energy Information Administration's report follows
at 11 a.m. EST (1600 GMT) on Thursday.
The data is expected to show builds in U.S. crude, gasoline
and distillate inventories, according to a Reuters poll of
analysts on Monday.
Copper was barely changed despite higher output reported by
mining groups such as BHP Billiton. Three-month copper on the
London Metal Exchange was down 0.45 percent at $8,096 a tonne