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Strong corporate profits have supported the market's rally this year. Quarterly earnings reached a record in the first quarter, according to S&P Capital IQ, rising 5 percent from the year before. Telecommunication companies have led the way. The S&P is up 16 percent so far in 2013. Among companies reporting earnings Wednesday, Macy said its profit increased 20 percent. The department-store chain also raised its quarterly dividend by a nickel to 25 cents and announced plans to buy an additional $1.5 billion of its own stock. Macy's gained 2 percent, or $1.18, to $48.57 In the market for U.S. government bonds, the yield on the 10-year Treasury note slipped to 1.94 percent from 1.98 percent late Tuesday. Traders bought Treasurys, pushing yields down, partially in response to news that France became the latest European country to enter a recession. Of the 17 countries that use the euro, nine of them now have shrinking economies. The Fed's bond-buying program has kept interest rates near historically low levels and encouraged investors to shift money into riskier assets, like stocks. The Fed buys $85 billion worth of bonds every month. Among other companies in the news: Deere & Co. fell 4 percent. The company, which makes farm and construction equipment, reported earnings that beat analysts' expectations but also warned that cool spring temperatures and tepid demand for its products will slow down its sales this year. Deere's stock lost $4.13 to $89.64. Computer Sciences dropped 10 percent, the biggest loss in the S&P 500. The information technology company turned in much weaker revenue than analysts had expected. Sales of the company's services to businesses and local governments slumped. Computer Sciences lost $4.78 to $44.71.
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