* Intel rallies despite revenue warning
* Financial shares lower after BofA results
* FDA approves Vivus obesity drug, stock soars
* Indexes up: Dow 0.1 pct, S&P 0.3 pct, Nasdaq 0.7 pct
By Ryan Vlastelica
NEW YORK, July 18 (Reuters) - U.S. stocks rose on Wednesday,
lifted by a rebound in tech shares following Intel's results,
though financials limited gains as Bank of America sold off.
In a reversal of the morning's premarket action, BofA fell
while Intel Corp rallied. It had been pressured a day
after it cut its outlook, though it also reported a
Financial shares were the weakest of the day,
dropping 0.5 percent. Bank of America Corp lost 1.4
percent to $7.81 after swinging to a second-quarter profit that
followed a massive mortgage-related charge a year earlier. It
also posted a decline in revenue.
With the share decline, BofA breaks a streak of post-result
rallies by such financials as JPMorgan Chase, Citigroup
Inc and Goldman Sachs.
Intel late Tuesday cut its full-year revenue outlook, the
latest tech name to warn on demand, but the shares rebounded 2.5
percent to $26 in early trading and lifted technology shares 1
"We're relatively stable today with a relief rally in Intel
since people were worried the results would be much worse than
what was delivered, though there are still some questions about
financials, especially ones with a lot of derivative exposure
like Bank of America," said Clark Yingst, chief market analyst
at Joseph Gunnar & Co in New York.
With 7 percent of S&P 500 companies having reported thus far
in the earnings season, 65 percent have beaten profit
expectations, according to the latest Thomson Reuters data. Only
15 percent have missed.
Industrial shares also climbed, advancing 0.8
percent on the back of strong results at Honeywell Inc,
which rose 6 percent to $57.79 as profits topped consensus
The Dow Jones industrial average was up 16.88 points,
or 0.13 percent, at 12,822.42. The Standard & Poor's 500 Index
was up 3.42 points, or 0.25 percent, at 1,367.09. The
Nasdaq Composite Index was up 19.80 points, or 0.68
percent, at 2,929.84.
Investors also looked to Ben Bernanke, the U.S. Federal
Reserve chairman, who will deliver the semi-annual "Monetary
Policy Report to the Congress" before the House Financial
Bernanke testified before a Senate committee on Tuesday, and
while he didn't give any specifics over what the central bank
might do to accelerate growth amid signs of weakness, he left
the door open to more stimulus if it became clear unemployment
was not falling or if deflation risks mounted.
"There's a lot of speculation about policy shifts, possible
quantitative easing, and that will drive markets both ways going
forward," Yingst said.
In other company news, Vivus Inc surged 13 percent
to $29.92 in premarket trading after the Food and Drug
Administration approved the company's obesity drug.
Groundbreaking on new U.S. homes rose in June to its fastest
pace in over three years, lending a helping hand to an economy
that has shown worrisome signs of cooling.
Homebuilders rose on the data. Lennar Corp added 1.2
percent to $31.51 and D.R. Horton Inc was up 1.4 percent