Yahoo became the latest tech company to report results ahead of expectations- joining Apple and Texas instruments and helping drive the market rebound. Bobbi Rebell reports.
Yahoo led by CEO Marissa Mayer turned in better than expected quarterly results and investors gave them a thumbs up in after hours trading. Revenue was up one percent - though its online display advertising business continued to decline. The Alibaba IPO was a big boost - Yahoo made about $9.5 billion in the deal when it sold 140 million shares. The company is well positioned for improved performance in 2015, said the online search and advertising company. "We ended the quarter with over $12 billion in cash and marketable securities." Meanwhile - the Dow staging a big comeback- erasing last week's losses in its third winning session in a row. The other major indexes following along with the S&P making it four in a row. About a dozen analyst hiked their price targets on Apple's stock. It reported strong sales of its iPhone 6, and it's bullish about the holiday quarter. Also issuing a bullish forecast: chipmaker Texas Instruments. That sparked a sizzle in chip stocks like Intel and Advanced Micro Devices. Thomson Reuters senior research analyst Greg Harrison has been tracking the report cards. SOUNDBITE: GREG HARRISON, SENIOR RESEARCH ANALYST, THOMSON REUTERS, (ENGLISH) SAYING: "I think the rebound in the stock market is in large part due to the improved earnings that we've seen so far the fundamentals look strong. revenue is strong and expectations for future quarters are strong so that makes valuations look a lot more reasonable. Dow stock United Technologies rose after the engine maker boosted quarterly profit 29 percent. But another industrial, top defense contractor Lockheed Martin, dropped. The maker of the F-16 fighters saw profit margins shrink at each of its divisions. Investors got another sign that the housing recovery is getting back on track. Existing home sales hit a one-year high last month. That lifted shares of homebuilders such as KB Home, Pulte, and DR Horton. In Europe, word that the ECB was mulling corporate bond purchases sparked a big rally led by bank stocks.