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Stocks are mixed a day after Dow posts best day of year; Apple doubles profits on iPhone sales
NEW YORK (AP) ' Stocks were mixed in early trading Wednesday, a day after the Dow Jones industrial average had its biggest gain this year, as traders weighed strong earnings from Apple and a slew of new deals.
Apple Inc. rose 3 percent after the company's income doubled last quarter, trumping analysts' estimates, as sales of the company's iPhones quadrupled in Asia.
American Airlines' parent company, AMR Corp., rose 2.4 percent after announcing an order for 460 planes from Boeing and Airbus. The new planes are expected to save money on fuel. Rising fuel prices left the airline with a loss of 85 cents a share, larger than analysts expected. The airline also said it would spin off its American Eagle subsidiary.
United Technologies Corp.'s dropped 2 percent in early trading, tugging down the Dow Jones industrial average. Cleaning and pest-control services company Ecolab Inc. said it would buy the water treatment company Nalco Holding Co. for $5.4 billion. Nalco soared 25 percent while Ecolab dropped more than 7 percent.
The Dow Jones industrial average is down 23 points, or 0.2 percent, to 12,563 in early trading. The S&P 500 index is up less than 1 point to 1,327. The Nasdaq is down 5 points, or 0.3 percent, to 2,820.
Stronger profits from Coca-Cola Co. and IBM Corp. along with apparent progress in raising the U.S. debt limit prompted a stock market rally Tuesday. The Dow gained 202 points, its best day this year.
Tuesday's rally turned the three major indexes positive for the month. The Dow and Nasdaq are now up more than 1 percent in July. The S&P 500 is up 0.5 percent.
Intel Corp. and American Express Co. are scheduled to report earnings after the market closes.