(Refiles to remove extraneous word from headline)
* Intel climbs on earnings, outlook
* Bank of America profit drops; stock slips
* Time Warner rebuffs $80 bln bid from 21st Century Fox
* Indexes up: Dow 0.2 pct, S&P 0.15 pct, Nasdaq 0.12 pct
By Chuck Mikolajczak
NEW YORK, July 16 U.S. stocks edged up on
Wednesday, buoyed by the latest merger news, but pulled back
from earlier highs as investors sifted through the latest batch
of corporate earnings.
Merger and acquisition activity continued to thrive on Wall
Street. Time Warner shares jumped 16.4 percent to $82.63
as the best performer on the S&P 500 after Twenty-First Century
Fox confirmed it made an $80 billion takeover offer for
the company that was turned down. Twenty-First Century Fox
shares lost 5.2 percent to $33.37.
Also supporting gains was chipmaker Intel, which
climbed 6.7 percent to $33.85 following second-quarter results
that topped analysts' estimates. The company also forecast
third-quarter revenue above Wall Street's expectations.
"It's a combination of M&A that has been pretty consistent -
about every day we wake up to at least one, if not two deals -
and earnings have continued to be good," said Bill Stone, chief
investment strategist at PNC Wealth Management in Philadelphia.
"Things have started off pretty well, we haven't seen a
whole lot outside of the financials but the few we have seen
have been pretty good."
A partnership struck between IBM and Apple Inc
helped boost indexes. IBM will exclusively sell iPhones
and iPads loaded with applications geared at enterprise clients
this fall. IBM shares gained 2.1 percent to $191.53 as the Dow's
biggest boost, while Apple advanced 1 percent to $96.24.
The S&P technology sector gained 0.8 percent.
Bank of America lost 2.2 percent to $15.48 after the
second-largest U.S. bank by assets reported a 43 percent drop in
second-quarter profit as mortgage revenue fell and litigation
costs increased. The bank has also offered $13
billion to settle a probe into mortgage securities it sold, the
Wall Street Journal reported.
Yahoo shares slumped 5 percent to $34.03 after
disappointing results and outlook, although the company pledged
to pay shareholders at least half the proceeds from Alibaba
Group Holding Ltd's IPO-BABA.N mega-IPO this fall.
The Dow Jones industrial average rose 34.49 points or
0.2 percent, to 17,095.17, the S&P 500 gained 2.89 points
or 0.15 percent, to 1,976.17 and the Nasdaq Composite
added 5.28 points or 0.12 percent, to 4,421.67.
U.S. Federal Reserve Chair Janet Yellen's testimony as
prepared for delivery to the House of Representatives Financial
Services Committee on Wednesday was a repeat of remarks from the
prior day when Yellen said the economic recovery remains
Producer prices rose 0.4 percent in June against
expectations of a 0.2 percent increase.
Other data showed industrial production edged up 0.2 in June
but fell short of the 0.4 percent estimate. The National
Association of Home Builders/Wells Fargo housing market index
rose to 53 in July, a six-month high.
S&P 500 companies' profits are now expected to grow 4.8
percent in the second quarter, according to Thomson Reuters
data, down from the 8.4 percent growth forecast at the start of
April. Revenue is seen up 3.1 percent.
(Editing by Bernadette Baum and Nick Zieminski)