Dow Jones:12,595.37 (+115.49) S&P 500:1,347.24 (+11.99) Nasdaq:2,847.54 (+21.66)
US STOCKS advanced yesterday, sending the Standard and Poor’s 500 Index to its highest level since June 2008, as quarterly earnings at companies including 3M and Ford Motor exceeded analysts’ projections.
3M, the maker of products including Scotch tape and Post-it Notes, rose 2 per cent.
Ford, the second-largest US automaker, gained 0.8 per cent after reporting a 22 per cent jump in profit as vehicle prices increased.
Delta Air Lines soared 11 per cent, the most since December 2009, as the world’s second- largest carrier reported a smaller loss than analysts estimated as higher fares helped blunt rising fuel costs.
The Dow Jones industrial average rose 115.49 points, or 0.93 per cent, at 12,595.37.
The Standard Poor’s 500 Index gained 11.99 points, or 0.90 per cent, at 1,347.24.
The Nasdaq Composite Index climbed 21.66 points, or 0.77 per cent, to end at 2,847.54.
“The earnings season has been amazingly strong,” said E William Stone, who helps oversee about $108 billion as chief investment strategist at PNC Wealth Management in Philadelphia.
“That’s very encouraging. It’s a testament to the global growth story. If you are a believer that earnings are sustainable, stocks certainly do not look expensive yet,” he said.
Before yesterday, the S&P 500 had failed to surpass its 2011 high from February 18th.
The index is now up 7.2 per cent from its 2011 low amid government stimulus measures and higher than estimated corporate profits.
Earnings per share beat estim-ates at 79 per cent of the 154 companies in the S&P 500 that have reported results since April 11th, said Bloomberg.
Federal Reserve policy makers are holding two days of meetings starting yesterday, and will likely say they’ll complete a second round of scheduled bond purchases worth $600 billion through the end of June to help sustain the recovery.
While companies including General Electric and Apple are among those benefiting from gains in spending on equipment and software, households are feeling the pinch of higher food and fuel prices. – (Bloomberg/Reuters)
