Dow opens higher despite disappointing results from Caterpillar, Boeing

Shares opened higher Wednesday morning despite a weaker-than-expected report from two Dow components and a poor update from a semiconductor company, with a new wave of corporate performance on deck.

Wall Street is also looking at developments related to Brexit, when a vote for a fast-track exit for the UK from the EU was rejected by Parliament on Tuesday, but the delay eases concerns that the UK crashed out of the bloc without a deal on October 31.

How are the big indexes going?

Dow Jones Industrial Average

DJIA, + 0.1[ads1]7%

opened 42.57 points higher, at 26,830.67, up 0.16%, while the S&P 500 index

SPX, + 0.06%

was 2.18 points lower on the open, at 2,993.18, a decrease of 0.07%. Nasdaq Composite Index

COMP, -0.02%

opened at 8091, up 13.73 points or 0.14%. All three indices returned from a steeper decline in the pre-market.

On Tuesday, the Dow lost 39.54 points, or 0.15%, to 26,788.10, the S&P 500 index fell 10.73 points, or 0.36%, to 2,995.99, while the Nasdaq Composite Index plunged 58 , 69 points, or 0.72%, to 8104.30.

What is driving the market?

Results from Caterpillar Inc .

CAT, -1.90%

and Boeing Co.

BA, + 3.64%

first knocked the market lower in the premarket action on Wednesday, with investors already unaccounted for from Brexit maneuvers and weakness among chip companies. But both stocks turned sharply higher by opening the market.

Caterpillar cut its 2019 earnings outlook as a whole when it reported third-quarter results that also missed Wall Street consensus estimates. Boeing revenues also missed projections and deliveries of new aircraft fell short, but revenues beat forecasts. But the manufacturer said it expects the beleaguered 737 Max to return to service in the fourth quarter.

It came in the middle of a slide for the semiconductor industry following a poor forecast from Texas Instruments Inc .

TXN, -7.25%

which was much worse than expected in a late Tuesday earnings report, with a new estimate range that fell as much as half a billion dollars below Wall Street's consensus revenue.

See also : Texas Instruments thoughts the chip sector and investors' hopes for a backlash

In general, however, US corporate earnings have been better than feared, albeit by lowered expectations. So far, of the 98 companies that reported third quarter results in the S&P 500, 82.7% reported results above analyst expectations, while 12.2% reported below analysts' expectations, according to research provider Refinitiv. By comparison, 65% tend to "beat" estimates and 20% fall below consensus estimates, according to Refinitive data dating back to 1994.

After the market closed Thursday, EBay Inc., Microsoft Corp., Ford Motor Co. , and Tesla Inc. is due to reporting results.

Meanwhile, Parliament's rejection of Prime Minister Boris Johnson's Brexit legislative plan reduced the likelihood of leaving by October 31, or without the agreement of the EU. The UK government has already requested an extension by the end of January 2020, and President of the European Council Donald Tusk said on Twitter that he would recommend that the request be granted.

On a light day for US economic data, Federal Housing Finance Agency's August house price index was 0.2% higher for the month, bringing annual price gains to 4.6%.

Which shares are in focus?

Caterpillar