Wall Street buoyed by positive UPS earnings

Dow Jones: 12,040.16 (+148.23) S&P 500: 1,307.57 (+21.45) Nasdaq: 2,751.19 (+51.11):US STOCKS rose yesterday, pushing the Dow Jones Industrial Average to its first close above 12,000 since June 2008, after American and Chinese manufacturing expanded and United Parcel Service (UPS) beat analysts' earnings estimates.

“We have a lot of cards falling together indicating that we are in a period of sustained growth,” said Matthew DiFilippo, director of research at Stewart Capital Advisors LLC in Indiana, Pennsylvania, which manages $1 billion.

The Dow Jones industrial average gained 148.23 points, or 1.25 per cent, to 12,040.16.

The S&P’s 500 Index rose 21.45 points, or 1.67 per cent, to 1,307.57.

The Nasdaq Composite Index added 51.11 points, or 1.89 per cent, to 2,751.19.

UPS advanced 4.2 per cent to $74.59, its highest price since April 2008, after posting fourth-quarter earnings that topped estimates as holiday demand boosted volumes. Adjusted profit of $1.08 a share exceeded the average $1.05 projection of analysts surveyed by Bloomberg. Revenue rose 8.4 per cent to $13.42 billion, outpacing projections.

Freeport-McMoRan, the world’s largest publicly traded copper producer, advanced 4.9 per cent to $114.07.

Alcoa, the largest US aluminum producer, increased 4.5 per cent to $17.32.

Bank of America led an index of financial shares in the S&P 500 up 2.2 per cent, second-biggest advance in the SP 500 among 10 industries. The lender rallied 4.2 per cent to $14.31, the third biggest jump in the Dow.

Archer Daniels Midland advanced 6.2 per cent to $34.70. Profit excluding a $71 million gain related to an acquisition was $1.07 a share, topping the 78-cent average estimate of 12 analysts surveyed by Bloomberg.

Manitowoc jumped 27 per cent, the most since November 2008, to $17.11 after the maker of cranes produced more than twice as much profit as analysts estimated. The company reported fourth-quarter earnings excluding some items of 11 cents a share, beating the average forecast by 162 per cent, according to data compiled by Bloomberg.

Pfizer climbed 5.5 per cent, the biggest gain in the Dow average, to $19.22. – (Bloomberg)