Business Blog Posts

* Tech majors Intel Corp (INTC.O) and Yahoo Inc (YHOO.O) beat revenue expectations after the market's close on Tuesday, an encouraging trend for the sector and sparking a strong rally in Asian and European tech shares.

* Intel shares traded in Frankfurt (INTC.F) were up 4.8 percent, while Yahoo shares traded in Frankfurt (YHOO.F) were up 1.8 percent.

* IBM shares traded in Frankfurt (IBM.F) were down 2 percent. The company reported a decline in signings of new business at its global services division during the first quarter, even as it reported profit and revenue ahead of analysts' projections.

* Companies scheduled to report quarterly results on Wednesday include Apple Inc (AAPL.O), American Express Co (AXP.N), AT&T Inc (T.N), United Technologies (UTX.N) and Freeport-McMoRan Copper & Gold (FCX.N).

* Apple is expected to report quarterly results on Wednesday, tempered by caution over how supply constraints will squeeze margins and restrain iPhone and iPad sales.

* Economic indicators include March existing home sales.

* On the M&A front, U.S. power company AES Corp (AES.N) said it would buy smaller rival DPL Inc (DPL.N) for $3.5 billion in cash to expand its footprint in the midwest region by adding 500,000 retail customers in West Central Ohio.

* Tokyo stocks snapped a three-day losing streak on Wednesday after Intel's earnings guidance sparked short-covering in chip-related stocks, while European stocks were up 1 percent in morning trade, led by tech shares such as ASML (ASML.AS) and Infineon (IFXGn.DE).

* U.S. crude oil futures were up $1.32 at $109.60 a barrel on Wednesday, as a rebound in equities and a weaker dollar eclipsed fears over eroding demand.

* Encouraging results from health care and materials companies lifted U.S. stocks on Tuesday, but weak earnings from Goldman Sachs limited gains in a market skeptical of the growth outlook.

* The Dow Jones industrial average .DJI gained 65.16 points, or 0.53 percent, to 12,266.75 at the close. The Standard & Poor's 500 Index .SPX added 7.48 points, or 0.57 percent, to 1,312.62. The Nasdaq Composite Index .IXIC advanced 9.59 points, or 0.35 percent, to 2,744.97.

(Reporting by Blaise Robinson; Editing by Louise Heavens)

In addition to seeking an update on Chief Executive Steve Jobs, investors will scour the results and executives' comments for clues on how the company is marshaling its supply chain to secure the crucial components it needs to meet torrid demand.

Analysts are betting Apple will take a hit, either in paying higher prices for parts or even in getting enough iPads and phones to market, at a time rivals including Research in Motion (RIMM.O) (RIM.TO) and Motorola Inc (MMI.N) are flooding stores with tablets.

This would be the first quarterly report for Apple under the stewardship of Chief Operating Officer Tim Cook since Jobs went on his third medical leave in January.

"The biggest concern at the moment is quite short term in nature and that revolves around the supply chain that is a global issue following the catastrophe in Japan," said Daniel Ernst, analyst with Hudson Square Research. "We are all interested to learn how Apple is managing that."

"They are in the best position to manage it but there is virtually no way they won't have some impact," he added.

Apple, a big purchaser of touchscreen displays and flash memory, is dependent on Japan for some of its key components, sparking concern that the disruption due to the crisis there may hurt its gross margins.

Wedbush Securities analyst Scott Sutherland estimates a 200-300 basis point decline in margins in the June quarter.

Despite the expected pressure on costs, analysts are bullish on the company's long-term prospects.

"The demand for Apple products is incredible, the company has managed the business very well in terms of cost and margin progression and new R&D, product launches," Ernst said. "So the long-term story looks fantastic."

HINTS AND CLUES

For the March quarter, the main drivers of growth include its perennial bestseller iPhone, which became available on the Verizon network during the past quarter, and the Mac line of computers.

Analysts are estimating sales of about 6 million iPads in the fiscal second quarter, alongside about 16 million iPhones and 3-4 million Macs.

The company gave hints on its sales numbers in a lawsuit, filed on Friday, which accuses Samsung Electronics (005930.KS) of violating the company's patents and trademarks.

In the legal filing, Apple said it had sold over 19 million iPads by March 2011, which implies sales of about 4.2 million units in the second quarter.

Japan's Nikkei share average .N225 rose 1.5 percent, while MSCI's index of Asia Pacific shares outside Japan .MIAPJ0000PUS gained nearly 1 percent, led by the tech and materials sectors, which both jumped more than 1 percent. .T

A clutch of U.S. technology heavyweights, led by chip maker Intel Corp (INTC.O), reported strong results after the Wall Street close. Earlier, healthy profits from healthcare and materials companies had helped lift the S&P 500 .SPX 0.6 percent. .N

The euro traded around $1.4365, having bounced off a two-week low around $1.4155 set on Monday. The Australian dollar bought around $1.0565, heading back toward a 29-year peak of $1.0585 set on April 8.

Oil prices were little changed, with Brent crude easing a little to $121.21 a barrel and U.S. crude edging up a touch to $108.32.

Gold traded around $1,495 an ounce, just short of a record.

(Writing by Alex Richardson; Editing by Richard Borsuk)

Japan's Nikkei share average .N225 rose 1.5 percent, while MSCI's index of Asia Pacific shares outside Japan gained nearly 1 percent, led by the tech and materials sectors, which both jumped more than 1 percent. .T

A clutch of U.S. technology heavyweights, led by chip maker Intel Corp (INTC.O), reported strong results after the Wall Street close. Earlier, healthy profits from healthcare and materials companies had helped lift the S&P 500 .SPX 0.6 percent. .N

The euro traded around $1.4365, having bounced off a two-week low around $1.4155 set on Monday. The Australian dollar bought around $1.0565, heading back toward a 29-year peak of $1.0585 set on April 8.

Oil prices were little changed, with Brent crude easing a little to $121.21 a barrel and U.S. crude edging up a touch to $108.32.

Gold traded around $1,495 an ounce, just short of a record.

(Writing by Alex Richardson; Editing by Richard Borsuk)

Bank of America, the largest U.S. bank by assets, will spin off BAML Capital Partners into its own unnamed firm.

The firm would then manage the bank's private equity assets for a fee -- winding those positions down over time -- and could begin accepting outside investors.

The assets will remain on BofA's balance sheet until they are wound down.

Company spokesman Jerry Dubrowski said BofA determined the business was "not strategically critical to customers and our clients" and the decision was made to spin off the unit.

Dubrowski said the head of the new firm had not yet been announced, and it was not immediately clear the number of employees that would move to the new firm.

The spin-off is the latest in a series of moves by the bank to comply with the Volcker Rule, a part of the financial regulatory overhaul law passed in 2010 that limits proprietary trading, or investments by banks using their own capital. It also fits with Chief Executive Brian Moynihan's efforts to sell off extraneous business units.

In 2010, the bank spun off Banc of America Capital Investors, a $1.4 billion private equity group to form Ridgemont Equity Partners, under a similar structure.

(Reporting by Joe Rauch; Editing by Tim Dobbyn)