US stocks: Earnings deluge continues

New York - US stocks Thursday were little changed in early trade following improved economic data in China and Europe and a busy day of earnings that featured both bright spots and disappointments.

About 35 minutes into trade, the Dow Jones Industrial Average increased 8.80 points (0.05 percent) to 17 095.43, while the S&P 500 was essentially flat at 1 987.02, up 0.01 point.

The tech-rich Nasdaq Composite Index dipped 1.54 (0.03%) to 4,472.16.

Banking giant HSBC said its preliminary purchasing managers index of manufacturing activity in China rose to 52.0 in July from 50.7 in June, hitting an 18-month high and boosting hopes for stronger growth in the world's number-two economy.

A survey by research firm Markit of eurozone business conditions said the PMI for the 18-nation bloc rose to 54.0 in July from 52.8 in June.

Briefing.com analyst Patrick O'Hare said the majority of the latest batch of earnings has been "better than expected."

Facebook was a standout, rising 5.5% after second-quarter profits more than doubled to $791m behind growth in ads on mobile devices.

United Continental shot up 5.8% as second-quarter earnings jumped 68 percent to $789 million. The airline's board authorized a $1bn share repurchase programme.

Ford Motor rose 1.5% as earnings climbed 6.3% to $1.3bn in results that bested analyst expectations. The automaker turned its first profit in Europe in three years.

But General Motors dropped 2.5% as second-quarter profit slumped 85% to $190m. The largest US automaker said it took $400m in charges for the ignition-switch compensation program and $1.2bn in charges for recalls.

Caterpillar fell 3.1% as it lowered its 2014 revenue forecast to a range of $54-$56bn from the previous projection of $56bn. The company cited a weaker outlook for construction in China, the Commonwealth of Independent States region made up of ex-Soviet countries and Africa/Middle East.

Wal-Mart Stores dipped 0.7% as it announced it was replacing Bill Simon as head of its US division with Greg Foran, currently head of Walmart Asia.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.51% from 2.46% Wednesday, while the 30-year increased to 3.30% from 3.26%. Bond prices and yields move inversely.