Stocks rally on strong corporate earnings

Dow Jones: 12,092.15 (+29.89) SP 500: 1,310.87 (+3.77) Nasdaq: 2,769.30 (+15.42):US STOCKS rose, reversing losses and sending the Standard and Poor's 500 Index to the highest level since June 2008, after the unemployment rate unexpectedly dropped and more companies beat earnings estimates.

Earlier yesterday, stocks fell as concern grew that Egyptian riots may intensify over the weekend.

“It’s just a slow and steady recovery,” said Timothy Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, New York, which manages $2 billion.

The Dow Jones industrial average rose 29.89 points, or 0.25 per cent, at 12,092.15.

The SP’s 500 Index added 3.77 points, or 0.29 per cent, at 1,310.87.

The Nasdaq Composite Index climbed 15.42 points, or 0.56 per cent, at 2,769.30.

The SP 500 has risen 94 per cent from its March 2009 low, the biggest rally over equivalent time periods since 1936, amid government efforts to stimulate the economy and higher-than-estimated corporate profits.

Tyson Foods gained 5.7 per cent to $18.56.

The largest US meat processor reported fiscal first-quarter profit that beat analysts’ estimates as pork and chicken income increased.

JDS Uniphase jumped 25 per cent to $22.34 after the company beat analysts’ projections for second-quarter per-share earnings excluding some items by 49 per cent.

Aetna increased 12 per cent to $37.42. The third-biggest US health insurer said its board approved a quarterly cash dividend of 15 cents a share.

Research In Motion rose 1.6 per cent to $63.69. The maker of the BlackBerry smartphone was raised to “equal-weight” from “underweight” at Morgan Stanley.

Las Vegas Sands fell 8.5 per cent to $46.03. The US casino company expanding in Asia posted sales that missed estimates.

US Steel, the country’s largest producer of the metal by volume, dropped 4.1 per cent to $58.17.

AK Steel Holding declined 3 per cent to $15.84.

Coinstar slumped 12 per cent to $38.96. The operator of the Redbox DVD rental machines forecast first-quarter earnings from continuing operations of no more than 25 cents a share. – (Bloomberg/Reuters)