US stocks mixed on IMF forecast, first day of earnings

Jul 8, 2009, 21:18 GMT

New York - US stocks were mixed Wednesday as second-quarter earnings began rolling in and the International Monetary Fund issued a more upbeat report on the global economy.

In its first update since April, the IMF said the world should emerge later this year from its first recession since World War II, though most wealthy countries will post negative growth until early to mid-2010.

The global economy will shrink 1.4 per cent this year but grow by 2.5 per cent in 2010, the IMF said. That compares to April's prediction of a 1.3-per-cent contraction in 2009 and growth of 1.9 per cent next year.

'The worst is behind us, and the recovery is coming,' IMF chief economist Olivier Blanchard said. 'The recovery is fragile, however.'

Aluminium producer Alcoa became the first US company to report its second-quarter earnings after the markets closed. The company posted a less-than-expected loss of 454 million dollars after reporting a profit of 546 million dollars in the same quarter a year earlier.

The blue-chip Dow Jones Industrial Average edged up 14.81 points, or 0.18 per cent, to 8,178.41. The broader Standard & Poor's 500 Index slipped by 1.47 points, or 0.17 per cent, to 879.56. The technology-heavy Nasdaq Composite Index inched up 1 point, or 0.06 per cent, to 1,747.17.

The US currency rose against the euro to 72.02 euro cents from 71.82 euro cents on Tuesday. The dollar fell against the Japanese currency to 92.88 yen from 94.8 yen.