Dow Jones: 12,560.18 (+80.60) S&P 500: 1,340.68 (+11.70) Nasdaq: 2,815.00 (+31.79)WALL STREET snapped its three-day losing streak yesterday thanks to a rebound in commodity prices and Dell's strong earnings, but investors say stocks still face headwinds.
Yesterday’s bounce gave some respite to selling that has driven the SP 500 down nearly 2 per cent this month as soft economic data has put investors on the defensive.
The stock market has slipped in tandem with sharp declines in commodities that have prompted investors to pare their riskiest bets. Some believe it points to a sustained correction, but yesterday’s action shows fund managers are keen to buy on dips.
US crude oil futures rose more than 3 per cent to settle back above $100 a barrel as crude inventories unexpectedly fell. Chevron rose 2.4 per cent to $102.86, giving the Dow one of its biggest lifts.
Dell’s shares jumped 5.4 percent to $16.75 after the PC manufacturer reported profits late on Tuesday that exceeded expectations. The company also raised its fiscal 2012 outlook for operating income.
In the tech sector, microchip maker Analog Devices posted quarterly profit that topped market expectations, sending its shares up 5.9 per cent to $42.60. The Philadelphia semiconductor index rose 1.9 per cent.
Lutz said developments around Europe’s debt crisis over the next few days could determine the market direction as top EU officials talk about a possible debt restructuring for Greece.
The Dow Jones industrial average gained 80.60 points, or 0.65 per cent, to 12,560.18.
The S&P’s 500 Index rose 11.70 points, or 0.88 per cent, to 1,340.68. The Nasdaq Composite Index added 31.79 points, or 1.14 per cent, to 2,815.00.
Helping transportation stocks, US railroad operator CSX said it is targeting double-digit growth in earnings per share and operating income through 2015, expecting growth that outpaces the economy.
CSX shares rose 2.2 per cent to $75.44. The Dow Jones Transportation Average gained 1.6 per cent.
Exxon Mobil advanced 1.7 per cent to $81.74. The PHLX oil service sector index climbed 2.6 per cent. The SP energy index added 2 per cent and shared the spotlight with materials as the SP 500’s top-performing sectors. – (Reuters)
