US open: Stocks advance on solid earnings

US stocks advanced on Wednesday, boosted by a host of earnings which offset disappointing manufacturing data.

At 15:00 BST, the Dow Jones Industrial Average was up 95 points, while the S&P 500 and the Nasdaq gained 11 and 30 points respectively.

Industrial production fell a seasonally adjusted 0.6% in March, registering the biggest drop since August 2012, the Federal Reserve said on Wednesday.

The drop was slightly bigger than expectations, as analysts had called for a 0.5% decline following a 0.1% in February.

“A steep fall in industrial production suggests the US economy is going through its worst growth patch since early 2009, dampening expectations of any imminent rate hike by the FOMC,” said Chris Williamson, Markit chief economist.

A separate report showed that manufacturing output in the New York area suffered an unexpected drop as orders plunged.

The Federal Reserve Chairwoman Janet Yellen has maintained that while rates will probably rise this year, any decision depends on economic data.

“This slowdown effectively kills any chance of policy makers hiking interest rates in June, and adds to fears about the corporate outlook,” added Williamson.

Earnings wise, Bank of America declined 0.6% despite saying it returned to profit in the first quarter after putting the costly settlements from the financial crisis behind it.

The bank recorded a profit of $3.4bn, or $27 cents a share, in the first three months of the year.

Bank of America's earnings were released a day after JP Morgan Chase & Co and Wells Fargo both reported relatively upbeat earnings.

Tech giant Intel rose 2.8% after it forecasted better-than-expected prospects for the second quarter, while Delta Airlines climbed 4.2% after posting first quarter earnings that beat expectations.

Meanwhile, shares of Google Inc shares slid 0.86% after Europe’s antitrust regulator filed formal charges against the online-search company.

Elsewhere, WTI crude oil rose 1.5% to $54.30 a barrel after the International Energy Agency said global oil demand will grow more than previously expected in 2015.

The dollar edged slightly higher against the euro and was stable against both yen and pound, while gold futures gained 0.25% to $1,195.60.