Stocks trade mixed; Dow rises while tech skids
New York • The stock market is mostly higher in midday trading even as several Internet companies including AOL and Groupon take a plunge. Molson Coors and video game maker Electronic Arts rose after reporting higher earnings. Whole Foods dropped 20 percent after cutting its profit forecast.
KEEPING SCORE: The Standard & Poor's 500 index rose five points, or 0.3 percent, to 1,873 as of 12:09 p.m. EDT. The Dow Jones industrial average climbed 105 points, or 0.7 percent, to 16,507. The Nasdaq fell 31 points, or 0.8 percent, to 4,049.
TECH SWOON: Internet companies fell for a second day running. AOL dropped $9.53, or 22 percent, to $34.24 after its earnings fell far short of what investors were expecting. Groupon lost $1.30, or 19 percent, to $5.43.
YELLEN: Federal Reserve Chair Janet Yellen told Congress's Joint Economic Committee that she expects low borrowing rates will continue to be needed for a "considerable time." She also said stress in emerging markets and a faltering housing recovery are potential threats.
FRESH SQUEEZE: Whole Foods plunged $9.62, or 20 percent, to $38.32 after the company cut its profit outlook late Tuesday. The company said it's facing increased competition as supermarkets, big-box stores and even online retailers step up their offerings of organic foods. It's the third time the grocery chain has trimmed its profit forecast in the last six months.
PERCOLATING BUSINESS: Mondelez surged following news that it will combine its coffee business with D.E. Master Blenders to form a new company, Jacobs Douwe Egberts. The new company will sell Gevalia, Tassimo and Jacobs, among other coffee brands. Mondelez rose $2.78, or 8 percent, to $37.95.
IT'S ELECTRIC: Electronic Arts jumped $4.71, or 17 percent, to $32.73 after the video-game maker turned in stronger results late Tuesday. The maker of "The Sims" and ''Madden NFL" reported higher profits and revenue than Wall Street expected and forecast stronger earnings over the next year. Electronic Arts has soared 43 percent so far this year.
SUDSY: Beer maker Molson Coors Brewing reported better results than analysts expected on Wednesday. Quarterly earnings rose as it benefited from payment it received from Modelo for a joint venture that ended early. Molson's stock rose $1.77, or 3 percent, to $61.54.
OTHER MARKETS: The yield on the 10-year Treasury note edged up to 2.60 percent from 2.59 percent late Tuesday. Crude oil rose $1.29 to $100.79 a barrel.