US open: Stocks edge higher as investors analyse raft of mixed earnings

US stocks edged higher early on Wednesday, as investors analysed a deluge of mixed corporate earnings reports.

Shortly before 1500 BST, the Dow Jones Industrial Average was up 37 points to 17,254.29 while the S&P 500 and the Nasdaq were four and 15 points higher respectively.

Boeing impresses, Coca-Cola and Baker Hughes on the back foot

Among the companies that reported ahead of the bell, Biogen surged 8.19% after lifting its outlook for 2015 as profit surged 25%.

However, the biopharmaceutical giant unveiled plans to cut its workforce by 11%, adding that its multiple sclerosis drug trial was unsuccessful.

Boeing climbed 2.18% after the aerospace company also raised the outlook for the full year after better-than-expected profits, while oil field services giant Baker Hughes climbed 0.43%, even though revenue plunged 39% in the wake of a slump in oil prices.

Coca-Cola slid 1.18% after third quarter revenues fell more than expected due to adverse currency movements, while eBay and American Express are among the companies that will report after the close.

“So far earnings at America’s top 500 companies have mostly exceeded estimates but revenues are falling short because of weak growth and a strong dollar,” said CMC Markets’ analyst Jasper Lawler.

In other company news, Yahoo! declined 2.71% after revealing late on Tuesday that its third quarter sales fell 8% and saying its revenue could suffer from a weak holiday period.

Chipotle Mexican Grill tumbled 7.17% after reporting weaker-than-expected profit late on Tuesday, as sales growth continued to slow in the third quarter.

Japanese exports slow down in September

The Mortgage Bankers Association (MBA) said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, jumped 11.8% in the week ended 16 October.

Elsewhere, Asian stocks closed on a mixed note after data showed Japanese exports grew at their slowest pace in over a year in September, rekindling talk of the need for further monetary stimulus out of the Bank of Japan.

"Japan is at risk of falling back into recession in the third quarter and today’s trade data did nothing to suggest that this would be avoided,” said Oanda’s senior market analyst Craig Erlam.

“If the country does fall back into recession in the third quarter it will make the job of returning inflation to 2% even more difficult and could pursued the Bank of Japan to consider further stimulus.”

European stocks edged slightly higher, while oil prices slid, with West Texas Intermediate falling 1.94% to $45.42 a barrel, while Brent crude lost 1.02% to $48.22 a barrel.

The dollar was broadly flat against the euro and the pound and climbed 0.19% against the yen, while gold futures declined 0.09% to $1,175.01.