Tech stocks boost market, weak reports hold it back

NEW YORK – Strong earnings from IBM and other technology companies nudged the stock market higher Thursday, but a trio of weak economic reports kept the gains in check.

IBM surged 4 percent after it posted a jump in profits late Wednesday even as revenue fell. It marked the 38th consecutive quarter that IBM’s net income rose over the previous year. IBM leapt $7.09 to $195.34.

The Dow Jones industrial average rose 34.66 points to close at 12,943.36 on Thursday, the third straight day of gains.

“One thing is dominating today and it’s tech earnings,” said Lawrence Creatura, portfolio manager at the mutual fund manager Federated Investors. “Earnings have been better than a lot of people expected. That could still change, but so far, so good.”

Analysts forecast that earnings at S&P 500 companies shrank 1.5 percent in the April-through-June period versus a year ago, according to researchers at S&P Capital IQ. If that turns out to be true, it will be the worst earnings season since the summer quarter of 2009.

In other trading, the Standard & Poor’s 500 index gained 3.73 points to 1,376.51. The Nasdaq composite index rose 23.30 points to 2,965.90.

Some 2013 Ford Escapes recalled for fuel line repairs

DETROIT – Ford Motor Co. is telling owners of one version of the brand-new Ford Escape not to drive the SUVs until dealers can fix fuel lines that can crack and spill gasoline, causing engine fires.

The company issued the unusual warning on Thursday and said it is recalling 2013 Escapes equipped with 1.6-liter four-cylinder engines. Dealers will pick up the Escapes and drop off a loaner car that customers can use until the repairs are finished. The company is hoping to ship parts and get all the SUVs repaired in the next two weeks.

Ford says it has three reports of fires: two at the factory and one while a customer was driving an Escape. No one has been injured.

The recall affects 11,500 Escapes in the U.S. and Canada. Only 4,800 have been sold to customers. The rest are on dealer lots and will be fixed before they are sold, spokeswoman Marcey Zwiebel said. “We are obviously taking very quick action in the interest of our customers’ safety,” she said.

Escapes powered by other engines are not affected, nor are other Ford models with 1.6-liter engines.

This is the second recall of the redesigned Escape, which went on sale in June. On Saturday, the company said it would recall more than 10,000 Escapes to fix carpet padding that could interfere with braking.

Kohl’s will stay in Milwaukee after tax credit-hiring deal

MILWAUKEE – Kohl’s Corp. agreed Thursday to keep its headquarters in the Milwaukee area under a deal reached with Wisconsin officials that would grant the company up to $62.5 million in tax credits if it honors its commitment to hire thousands of local workers.

The company, which has about 4,900 employees at its corporate locations around the area, has said it will add up to 3,000 jobs over the next 12 years in southeastern Wisconsin and spend $250 million in facility improvements.

— From news service reports