Stocks rose at the open on Wednesday after a series of weak sessions, as strong earnings from technology bellwether Cisco and two retail chains boosted sentiment.
Cisco Systems Inc. (CSCO), the biggest maker of computer networking equipment, rose the most in almost three months after its profit topped analysts’ estimates, price reductions helped spur sales and cost cuts kept margins intact.
While shares of Cisco stayed sharply higher, all three major indexes fell, continuing a recent trend where equities have been unable to hold onto early gains amid concerns about impending U.S. budget discussions and a debt crisis in Europe.
The Dow Jones industrial average gained 14.63 points, or 0.11 percent, to 12,770.81. The Standard & Poor's 500 Index rose 2.83 points, or 0.21 percent, to 1,377.36. The Nasdaq Composite Index added 12.29 points, or 0.43 percent, to 2,896.18.