NEW YORK - US stocks rallied on Wednesday, driving the Dow to a two-week high and pushing the Nasdaq up more than 1 per cent, as strong earnings from FedEx Corp. and Morgan Stanley renewed investors' optimism about corporate profits.
About three stocks advanced for every one that fell on
both the New York Stock Exchange and the Nasdaq. The Dow Jones Transportation Average index jumped 2.9 per cent.
FedEx, the world's largest air-express courier, is often viewed as a gauge of US business activity and the health of corporate spending. FedEx cited strong international and US economic growth as the catalysts behind quarterly results that exceeded Wall Street's forecasts, while the quarterly profit of investment bank Morgan Stanley more than doubled and handily beat analysts' estimates.
Hewlett-Packard Co. advanced 2.7 per cent, making it among the biggest positive influences on the Dow average, after the No. 2 personal computer maker said late on Tuesday it will further streamline its business.
"The earnings reports gave investors a good excuse to buy," said Subodh Kumar, chief investment strategist at CIBC World Markets, in New York. "The market is trying to cut some losses."
The Dow Jones industrial average climbed 104.62 points, or 0.95 per cent, to end at 11,079.46. The Standard & Poor's 500 Index gained 12.08 points, or 0.97 per cent, to finish at 1,252.20. The Nasdaq Composite Index shot up 34.14 points, or 1.62 per cent, to close at 2,141.20.
Shares of Oracle Corp. advanced and helped lift the Nasdaq. The software maker said it had received enough shares of Portal Software Inc. to proceed with its acquisition of the company.
Oracle shares rose 2 per cent, or 28 cents, to US$14.53.
Demand for tech stocks pushed the semiconductor index up 2.1 per cent.
The Nasdaq's biggest gainers included Google Inc., the leading Web search company, up 3.9 per cent, or US$14.96, to US$402.13.
After the closing bell, design software maker Adobe Systems Inc. said it has signed a multiyear agreement with Google to distribute the Google Toolbar with various Adobe products. In regular trading, Adobe shares gained 1.2 per cent, or 35 cents, to US$29.88 on Nasdaq.
In extended-hours trading, Google shares rose slightly to US$402.56, while Adobe advanced to US$30.64, on the Inet electronic brokerage network.
During the regular session, other major contributors to the Nasdaq's gains were Microsoft Corp., up 2.3 per cent, or 52 cents, at US$23.08; Qualcomm Corp. gained 0.7 per cent, or 29 cents, to US$44.20, and Intel Corp., up 1.4 per cent, or 25 cents, to US$18.40.
"Today's recovery is not concentrated only in big-cap shares, but small companies and tech shares are also rebounding," said Evan Olsen, head of equity trading at Stephens Inc. in Little Rock.
Hewlett-Packard gained 2.7, or 88 cents, to close at US$33.74 on the New York Stock Exchange.
The earnings reports, among the first for the latest quarter, bolstered views that corporate earnings will continue to show robust growth despite rising interest rates. The Federal Reserve is expected to raise rates for a 17th consecutive time next week.
FedEx shares rose 5.1 per cent, or US$5.54, to US$113.86, while Morgan Stanley shares climbed 4.3 per cent, or US$2.46, to US$59.48, in NYSE trading.
DuPont Co., the biggest gainer on the Dow, said late Tuesday it is partnering with BP Plc to develop transportation biofuels that would help cut overall greenhouse gas emissions and reduce reliance on petroleum. DuPont shares rose 4.2 per cent, or US$1.70, to US$41.94.
Among decliners were Univision Communications Inc., the Hispanic broadcaster. Its shares slid 4.4 per cent, or US$1.56, to US$33.84 on the NYSE after US billionaire Haim Saban and four private equity firms made an offer for Univision, but the entry of rival suitor Televisa remained unclear, according to sources involved in the deal.
Trading was active on the NYSE, with about 1.66 billion shares changing hands, above last year's daily average of 1.61 billion, while on Nasdaq, about 1.91 billion shares traded, above last year's daily average of 1.80 billion.
- REUTERS
NEW YORK - US stocks rallied on Wednesday, driving the Dow to a two-week high and pushing the Nasdaq up more than 1 per cent, as strong earnings from FedEx Corp. and Morgan Stanley renewed investors' optimism about corporate profits.
About three stocks advanced for every one that fell on
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