By Chuck Mikolajczak
NEW YORK (Reuters) - Stocks in major markets edged higher on Wednesday as the latest batch of U.S. corporate earnings held equities in check, while U.S. Treasury prices declined after home sales data added to anticipation of a rate hike by the U.S. Federal Reserve later this year.
Wall Street was modestly higher in choppy trading as quarterly earnings continued the early trend of companies topping earnings estimates but falling short of revenue expectations, providing little incentive for investors to push the S&P 500 up to a record or cause a significant pullback. The benchmark index is 0.7 percent below its intraday record set on Feb. 25.
"For an earnings season, this has been remarkably free of drama," said Peter Kenny, chief market strategist at Clearpool Group in New York.
"It's early in the season, but thus far we've had a lot of big names report and a lot of the names that have historically driven a lot of volatility and a lot of volume, and it is just not happening."
U.S. Treasury prices extended earlier declines after a stronger-than-anticipated 6.1 percent climb in domestic home resales in March increased expectations the Fed would hike interest rates later in the year. In addition, a selloff in German Bunds caused investors to reduce their holdings in other low-risk government debt.
The Dow Jones industrial average (DJI) rose 59.45 points, or 0.33 percent, to 18,009.04, the S&P 500 (SPX) gained 7.42 points, or 0.35 percent, to 2,104.71 and the Nasdaq Composite (IXIC) added 8.28 points, or 0.17 percent, to 5,022.38.
Benchmark 10-year notes (US10YT=RR) were last down 15/32 in price to yield 1.9665 percent. The 10-year German yield (DE10YT=RR), close to falling to zero last week, was last at 0.16 percent, doubling in three sessions.
European stocks pulled back from earlier highs to finish just below the unchanged mark, with a series of weak company earnings reports halting a two-day winning streak.
Greece's debt crisis remained at the forefront of investors' minds. But a gathering of European finance ministers this week won't be the crunch meeting it had been billed as, giving Greek markets, euro zone bonds and the euro some breathing space.
MSCI's all-country world index (MIWD00000PUS) of equity performance in 46 countries advanced 0.22 percent, while the FTSEurofirst 300 index (FTEU3) of top European shares dipped 0.02 percent at 1,628.35. Germany's DAX (GDAXI) fell 0.6 percent.
The Greek government's looming cash crunch initially weighed on local markets as Greek stocks hit a three-year low, but the benchmark Greek equity index (ATG) managed to close 2.1 percent higher as euro zone and Greek officials said the country can muster enough cash to meet obligations into June.
In commodities, oil prices Brent prices rose as conflict in Yemen remained a concern, while U.S. crude was volatile after a second straight week of production declines despite higher inventories.
Brent crude was up 1.3 percent at $62.88 a barrel