US markets inched higher on housing data

The US markets closed marginally higher on Wednesday, as a jump in housing starts to four-year high overshadowed earnings that disappointed investors. Housing starts in the US surged 15 percent in September to the highest level in four years, adding to signs of a revival in the industry at the heart of the financial crisis. The Commerce Department reported that construction on new houses jumped to an 872,000 annual rate in September, the biggest number since July 2008 and easily topping expectations. On the other hand, International Business Machines Corporation (IBM), the computer-services provider reported revenue that missed expectations. The next worst was Intel Corporation, after the semiconductor maker projected a fourth-quarter profit margin below estimates.

In Europe, German Chancellor Angela Merkel reiterated that Greece must remain part of the euro zone. However, German economy ministry lowered Germany’s outlook for growth next year to 1% from 1.6%. Separately, Moody’s Investors Service confirmed Spain’s Baa3 government bond rating but assigned a negative outlook. The pressure mounted on Spain to finalize its bailout request which the government has been resisting. Meanwhile, S&P downgraded Cyprus to B from BB and stated that the nation’s creditworthiness has deteriorated significantly since the last downgrade in August as domestic political constraints prevented a timely aid deal.

The Dow Jones Industrial Average gained 5.22 points, or 0.04 percent, to close at 13,557.00, the S&P 500 finished up by 5.99 points, or 0.41 percent at 1460.91, while the Nasdaq ended higher by 2.95 points, or 0.10 percent to settle at 3104.12.

Indian ADRs closed on a mixed note on Wednesday, ICICI Bank was up 0.25%, Tata Motors was up by 0.15% and Sterlite Industries was up by 0.06%. On the other hand, Infosys was down by 0.44% and HDFC Bank was down 0.18%.