Stocks turn mixed after housing report

Stocks opened negative but turned mixed in early trading after a report of surging housing starts and amid a drumbeat of better-than-expected corporate earnings.

The Dow Jones industrial average was down 5 points, essentially flat at 13,547 shortly after the opening bell Wednesday.

The broader Standard & Poor’s 500 index gained 6 points, or 0.4%, to 1,460. The Nasdaq was up 9 points, or 0.3%, to 3,110.

Major U.S. stock indexes rose about 1% on Tuesday.
Aside from a report showing housing starts reaching a four-year high, investors have also been digesting third-quarter corporate earnings that, overall, have come in better than analysts expected.

Of the 52 companies that had reported earnings as of Tuesday, 35 have beat analysts’ estimates, while 10 have missed and seven have met estimates, according to a report by S&P; Capital IQ.

The “beat rate” so far is 67%, higher than the 10-year average of 62%, according to S&P; Capital IQ.

On Wednesday, Bank of America reported a plunge in third-quarter profits, in part due to a $1.6-billion expense related to a legal settlement stemming from its acquisition of Merrill Lynch.

But results nonetheless beat expectations. Bank of America said it earned $340 million, or zero cents a share, down from $6.2 billion, or 56 cents, the same period a year ago. The bank’s stock added 10 cents, or 1%, to $9.56 in early trading.

Citigroup Inc. continued to get a lift following abrupt departure Tuesday of its chief executive, Vikram Pandit. Citi’s stock was up 73 cents, or 2%, to $37.98.
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