NEW YORK (CNNfn) - Stocks opened slightly higher Tuesday after a long holiday weekend as investors faced a busy session dominated by a slew of high-profile earnings reports and news of large merger deals.
Around 10:00 a.m. the Dow Jones industrial average was up 2.74 points at 7,756.29. On the New York Stock Exchange, advances led declines 1,494 to 901 as 87 million shares changed hands.
Broader markets also advanced, with the Nasdaq Composite rising 5.76 to 1,568.64 and the S&P 500 index up 3.10 to 964.61.
Bonds also were higher, although the market lacked momentum following a mixed performance in Asian markets overnight and in the absence of any significant economic data releases. The price of the benchmark 30-year Treasury bond rose 5/32 for a drop in its yield to 5.79 percent.
The dollar also hovered in a narrow range, making small advances against both the Japanese yen and the German mark in early trading.
Earnings rule the day
In stocks, the outpouring of earnings releases from major companies prompted market participants to dub the day "Super Tuesday."
Financial services companies started the earnings avalanche, with Citicorp (CCI) reporting fourth-quarter profits of $2.20 per diluted share, up from $1.97 a year earlier and above Wall Street expectations for $2.18 a share. The stock fell 3/8 to 119-1/2 despite the better-than-expected results. Citicorp's pre-tax results were cut by $250 million as a result of the Asian financial crisis.
Dow component J.P Morgan (JPM) also came in with fourth-quarter results, but its profit fell to $1.33 a share from $2.04 a year earlier. The results were also below market expectations for $1.57 a share. The stock lost 2-11/16 to 104-3/16 following the disappointing news.
And Chase Manhattan (CMB) reported fourth-quarter earnings of $1.89 per diluted share, beating year-earlier results by a penny, and meeting Wall Street expectations. Chase's shares fell 3/4 to 104-3/4 on the news.
Technology companies, the market's most volatile performer, also had some earnings of their own, with Lucent Technologies (LU) reporting fiscal first-quarter profits of $1.124 billion or $1.72 per diluted share, up 31 percent from a year earlier. Shares of Lucent jumped 3-1/4 to 78-11/16.
In other technology news, the New York Times reported that industry giants Compaq Computer (CPQ), Intel Corp. (INTC) and Microsoft (MSFT) have joined forces with the country's largest local phone companies to provide faster Internet access through regular phone lines. Shares of Compaq fell 3/4 to 58-3/8, Intel was up 3/16 to 75, and Microsoft lost 1 to 134-1/4.
And in more technology earnings, IBM (IBM), one of the bluest of blue chips, is expected to report fourth-quarter profits of $2.15 a share after the closing bell. The stock was up 1/4 at 105-1/4.
Tuesday also brought a hefty dose of merger news. Leading the pack was news that British pharmaceutical group SmithKline Beecham is in talks to buy American Home Products (AHP). American Home Products shares surged 11-5/16, or more than 14 percent, to 92 on the news, pulling other drug stocks with them. Eli Lilly (LLY) gained 2-1/2 to 69-1/2 and Pfizer (PFE) rose 1-15/16 to 78-15/16.
Also in merger news, Hicks Muse Tate & Furst will join with Kohlberg Kravis Roberts & Co. to acquire Regal Cinemas (REGL) for $1.5 billion, plus the assumption of $290 million in debt. Shares of Regal lost 9/16 to 29-11/16 after rising sharply Friday.
--by staff writer Malina Poshtova Zang
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