Dow Jones: 12,505.99 (+52.48) S&P 500: 1,337.37 (+7.02) Nasdaq: 2,820.16 (+17.65)US STOCKS rose yesterday, with the Standard and Poor's 500 Index approaching its bull-market high, as higher than estimated earnings at companies from Apple to Morgan Stanley bolstered optimism in the economy.
Technology companies rallied as Apple and Qualcomm advanced at least 2.4 per cent after reporting profit and sales that topped estimates.
Material stocks including Alcoa led gains as commodity prices rose for the third straight day. Morgan Stanley gained 1.7 per cent as the owner of the world’s largest brokerage said trading revenue more than doubled from the fourth quarter.
The Dow Jones industrial average gained 52.48 points, or 0.42 per cent, to end at 12,505.99.
The Standard & Poor’s 500 Index rose 7.02 points, or 0.53 per cent, to 1,337.37.
The Nasdaq Composite Index climbed 17.65 points, or 0.63 per cent, to 2,820.16.
GE shares fell 2.2 per cent to $19.95 while Verizon lost 2.3 per cent to $36.91 and McDonald’s was off 1.9 per cent at $76.91.
DuPont added 1 per cent to $55.91 and UnitedHealth rose 8.1 per cent to $47.81.
Biogen Idec was the SP 500’s top gainer, up 15.2 per cent at $99.70.
“There’s no doubt this rally’s earnings-driven,” said Tom Wirth, senior investment officer for Chemung Canal Trust, which manages $1.6 billion in Elmira, New York.
“The Dow is at a three-year high because earnings are also at a three-year high. We expect this quarter to be a record quarter. We’re seeing the top line pick up. This is a multinational large company story. It’s company after company.”
SP 500 companies have topped analyst estimates for eight straight quarters, helping to propel the gauge up 97 per cent from the market bottom on March 9th, 2009.
David Kostin, Goldman Sachs chief US equity strategist, said US companies were posting “excellent” earnings and some, such as technology firms, would carry on that momentum throughout 2011.
Applications for jobless benefits fell by 13,000 to 403,000 in the week ended April 16th, labour department figures showed before the market opened. – (Bloomberg/ Reuters)
