Stocks rise despite inflation worries
Markets higher even as key inflation reading surges by largest margin since 1991, as investors focus on impressive earnings reports.

July 16, 2008: 9:38 AM EDT

NEW YORK (CNNMoney.com) -- U.S. stocks were higher at Wednesday's open as investors focused on several positive corporate earnings reports, despite a surge in inflation.

The Dow Jones industrial average (INDU) rose 0.3%. The Standard & Poor's 500 (SPX) index gained 0.3%, and the Nasdaq composite (COMP) gained 0.3%.

On Tuesday, the Dow Jones industrial average closed at its lowest point since July 21, 2006, and the S&P 500 index closed at its lowest level since Nov. 2, 2005.

In the news Wednesday:

CPI: The consumer price index, a key inflation gauge, surged 5% in the past year - the biggest jump in more than 17 years. (Full story)

Industrial production: Industrial production increased 0.5% in June, stronger than a 0.2% decline in May, according to a report released by the Federal Reserve Wednesday. The measure roundly beat economists' expectations.

Delta: Delta Air Lines (DAL, Fortune 500) overcame a spike in fuel costs to report better-than-expected operating income Wednesday, although a special charge resulted in a large net loss. (Full story)

American Airlines: AMR Corp (AMR, Fortune 500), parent company of American Airlines, reported a wide loss for the second quarter, citing record fuel prices, yet beat analysts' expectations.

Wells Fargo: Wells Fargo reported second-quarter earnings Wednesday that came in 22% below year-earlier levels. The struggling bank cited a growing number of unpaid loans for the slide, but raised its quarterly stock dividend to 34 cents from 31 cents. (Full story)

Intel: Chipmaker Intel (INTC, Fortune 500) reported a 25% jump in quarterly profit late Tuesday, topping Wall Street's estimates. (Full story)

Energy: Oil prices continued to fall Wednesday after plunging more than $6 a barrel Tuesday - the biggest one-day drop in 17 years.

The average price of regular unleaded rose to a an all-time high of $4.114 a gallon, according to a daily survey from motorist advocacy group AAA.

The U.S. Department of Energy was due to release its weekly report on crude inventories at 10:35 a.m. ET.

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