LONDON (Reuters) – NYSE Euronext (NYX.N) (NYX.PA), which wants regulatory support for its planned $9 billion merger with Deutsche Boerse (DB1Gn.DE), cited strong trading and technology sales for a 54 percent hike in quarterly profit to $186 million.

The exchange said derivatives trading operating income was up 38 percent to $129 million, share trading rose 54 percent to $155 million while data and systems sales improved 29 percent to $31 million.

NYSE Group total revenue was up 20 percent from a year ago to $1.3 billion, compared with the same period last year, while operating expenses fell 1 percent to $416 million.

"Our strong third-quarter results benefited from unseasonably strong trading volumes," said NYSE Euronext Chief Executive Duncan Niederauer.

"Non trading-related net revenue was up $30 million year-over-year, driven by growth in our technology services businesses and the increasing momentum we are experiencing in our global listings franchise," Niederauer added.

The results came as the transatlantic exchange group continues its talks with the European competition authorities in the hope of convincing them to back its planned merger with German operator.

"We are moving forward with our merger with Deutsche Boerse and have just recently conducted a hearing before the Directorate General for Competition of the European Commission," said Niederauer.

The NYSE chief is set to meet European Union antitrust regulators again on Tuesday, a source familiar with the matter said on Wednesday.

NYSE Euronext and Deutsche Boerse have until November 17 to offer concessions, such as opening up to rivals or selling parts of their business, and the EU has pledged to make public its final decision on the deal by December 22 this year.

"With over $1 billion in adjusted EBITDA generated in the first 9 months of the year and debt-to-EBITDA level of 1.6 times, our balance sheet continues to strengthen as we prepare for our merger with Deutsche Boerse," said Michael Geltzeiler, Chief Financial Officer at NYSE Euronext.

(Editing by David Holmes and Andrew Callus)

NEW YORK – Investors who doubted U.S. companies could make big money in a weak economy have been proved wrong again.

Before companies started reporting earnings two weeks ago, investors worried third-quarter profits might fall short of what Wall Street analysts were predicting. The fear helped push stocks nearly into a bear market. More companies than usual warned the faltering recovery could hurt business.

The reality has turned out different.

Among S&P 500 companies reporting so far, seven out of ten have posted higher profits than expected, called “beats” in Wall Street parlance. For all S&P companies, profits are now on course to rise 14 percent, the eighth quarter in a row they will have grown more than 10 percent. Profits for 2011 are on pace to surpass the annual record set in boom times four years ago.

Stocks have rallied in response. Yet some companies beating expectations are getting punished. On Monday, stock in IBM Corp. fell sharply even after posting better-than-expected profits. And stocks are still priced relatively low compared to earnings.

Part of what’s bothering investors is fear of another economic slowdown. They worry that if Greece defaults on its debt, it could set off another global financial panic and tip the already fragile U.S. economy into recession.

A recession could mean big trouble for stocks. A year after the last recession started, near-record profits for the S&P 500 turned into losses. The index fell by half, reaching a 12-year low in March 2009.

“People are saying it doesn’t really matter what companies earn if we fall into recession,” says Sam Stovall, chief investment strategist at Standard & Poor’s.

Investors are right to worry for another reason: Those corporate “beats” are less impressive than they seem.

Wall Street analysts generally think the U.S. is going to avoid a recession and that stocks are a bargain. Yet they’ve been cutting their estimates in the months leading up to this reporting season, according to John Butters, senior earnings analyst at data provider FactSet.

Which raises the question, Why get excited about a company that beats estimates that have been lowered?

“I’d be more impressed if the numbers hadn’t come down,” says Butters, who calculates estimates fell an average 4 percent from this summer through earlier this month. “It’s a solid drop.”

Estimates for early next year have been cut even more. Whereas analysts used to expect an 11.9 percent rise in S&P 500 earnings for the first quarter, for instance, they now see them growing 7.7 percent.

Analysts have turned sour mostly on three industries: Financials firms like banks, telecommunication companies and steel and other materials makers. The latter includes Alcoa, which posted profits below estimates that analysts had already cut. For all materials companies, they’ve cut third-quarter estimates 13 percent from the summer through last week.

For all their caution, investors have richly rewarded some companies lately. Shares of Intel Corp. and McDonald’s Corp. rose nearly 4 percent after reporting surprisingly good earnings last week. The S&P index is up 12.7 percent from its low for the year on Oct. 3.

With most companies yet to report, there’s still a chance more could start missing estimates.

On Monday, heavy machinery maker Caterpillar Inc. is expected to report profits per share grew by almost a third over the prior year. Still, the stock has fallen 22 percent in three months as analysts cut estimates. One concern: With economic growth slowing around the world, Caterpillar may have trouble selling tractors and farm equipment abroad.

Package delivery giant United Parcel Service Inc. reports Tuesday. Its stock has dropped more than 5 percent in three months as analysts slashed estimates by a similar amount. Rival FedEx Corp. met expectations when it reported last month. The stock fell to a two-year low anyway, on fears that future earnings might disappoint.

On Thursday, Procter & Gamble Co. will offer insight on consumer spending with its earnings report. In three months, stock in the maker of Pringles and Pampers has risen 2 percent while analysts were cutting estimates 10 percent. In other words, don’t be surprised if the stock drops even if the company beats.

Then again, the report from P&G may get drowned out by other headlines. By then, investors will be digesting details of Europe’s latest plan to shore up its banks and increase the scope of a financial rescue fund. Europe’s leaders hope to hammer out the details at a summit meeting Wednesday.

Depending on how they view the plan, stocks could rise sharply or fall fast. Laments S&P’s Stovall, “The market is driven more by macro news, not micro.”

Translation: Profits may not matter as much as you think.

NEW YORK (Reuters) – Stocks recorded their best day since March on Tuesday after strong corporate results and renewed hope for an agreement in Washington on thorny budget issues boosted investor confidence.

Quarterly numbers from technology bellwether International Business Machines Corp (IBM.N) and Coca-Cola (KO.N) lifted technology and consumer shares in the first heavy week of second-quarter results. IBM gained 5.7 percent, leading the Dow’s gainers.

The Nasdaq gained more than 2 percent, led by big-cap tech, including Apple (AAPL.O), which hit a 52-week high during regular trading. After the market closed, the maker of iPhones and iPads reported revenue well above analysts’ estimates, sending its shares up 6.7 percent to $402.

Nasdaq 100 index futures rose 22 points, indicating a higher open for stocks on Wednesday.

“The market has been looking for leadership and it hasn’t been getting it from finanicals… The fact that tech companies can deliver or exceed results gives markets hope that stocks can rise, even given broader macro concerns,” said Nicholas Colas, chief market strategist at the ConvergEx Group.

In Tuesday’s session, the S&P information technology sector (.GSPT) was the best performing sector, gaining 2.7 percent.

Markets gained momentum late in the day after President Barack Obama suggested progress was being made toward a $3.75 trillion deficit reduction deal centered around entitlement reform.

The White House and Congress also need to sign an agreement that includes an increase in the federal debt ceiling by August 2 or the United States could default on its debt.

“Stocks are starting to bounce at least for the time being, with people wagering that there will be a resolution on the debt ceiling,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.

Among financial shares, Goldman Sachs Group Inc (GS.N) and Bank of America ended down following their earnings results. After advancing in the morning, Bank of America (BAC.N) shares fell 1.5 percent to $9.57, while Goldman declined 0.6 percent to $128.49.

Wells Fargo (WFC.N) shares jumped 5.7 percent, the biggest gain on the S&P financials index, after the bank said its profit rose 30 percent.

“In terms of the overall earnings season, I’d say things have been pretty good so far,” said Phil Orlando, chief equity strategist at Federated Investors.

The Dow Jones industrial average (.DJI) was up 202.11 points, or 1.63 percent, at 12,587.27. The Standard & Poor’s 500 Index (.SPX) was up 21.27 points, or 1.63 percent, at 1,326.71. The Nasdaq Composite Index (.IXIC) was up 61.41 points, or 2.22 percent, at 2,826.52.

Goldman’s second-quarter net income fell short of lowered expectations as fixed income trading revenue dropped sharply. Bank of America recorded a second-quarter net loss of $8.8 billion.

Coca-Cola Co (KO.N) posted slightly higher-than-expected profit. Shares rose 3.3 percent to $69.32.

Housing starts hit a six-month high in June. The PHLX Housing Index (.HGX) rose 3 percent.

Volume was light with about 7.01 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below the daily average of 7.49 billion.

About four stocks rose for every one that fell on the New York Stock Exchange and the Nasdaq.

(Reporting by Ashley Lau; Additional reporting by Daniel Bases; Editing by Kenneth Barry)

NEW YORK – The Dow Jones industrial average appears poised to open higher after retail giant Wal-Mart posted healthy net income for the quarter.

Wal-Mart Stores Inc., one of 30 companies in the Dow average, said Tuesday that net income rose 3 percent in the first quarter. The results beat Wall Street expectations.

Home Depot Inc. and Hewlett Packard Co., two other members of the Dow, also reported results Tuesday. Home Depot says net income jumped 12 percent in the first quarter. Hewlett Packard says profits rose in the most recent quarter, but it’s lowering its outlook for the rest of the year.

Dow futures are up 16, or 0.1 percent, to 12,525. S&P 500 futures are up 2, or 0.2 percent, to 1,328. Nasdaq 100 futures are up 1 to 2,335.