Optimism over global recovery lifts indices

Dow Jones: 12,273.26 (+43.97) SP 500: 1,329.15 (+7.28) Nasdaq: 2,809.44 (+18.99)US STOCKS rose yesterday, extending a second straight weekly advance, as Egyptian president Hosni Mubarak's resignation and a jump in consumer confidence to an eight-month high bolstered optimism in the global economic recovery.

“As some of the uncertainty clears in Egypt, people can focus on fundamentals,” said Peter Sorrentino, who helps oversee $14.4 billion at Huntington Asset Advisors in Cincinnati.

“We’ve had a fair amount of pretty good economic reports, including consumer confidence. Unfortunately, the optimism was recently disrupted by geopolitical concern. We’ll see how that plays out. There’s enough momentum in the US economy right now,” he said.

The Dow Jones industrial average was up 43.97 points, or 0.36 per cent, at 12,273.26.

The Standard Poor’s 500 Index was up 7.28 points, or 0.55 per cent, at 1,329.15.

The Nasdaq Composite Index was up 18.99 points, or 0.68 per cent, at 2,809.44.

Stocks extended gains as Mr Mubarak bowed to the demands of protesters. He handed power to the nation’s military.

His resignation opens a new phase in a crisis that was sparked by the ouster of Tunisian president Zine El Abidine Ben Ali and is rippling through a region that holds more than 50 per cent of the world’s oil reserves.

JPMorgan Chase gained 2.7 per cent to $46.75, while Bank of America advanced 2.4 per cent to $14.84 and Caterpillar rose 2.2 per cent to $102.80.

ConocoPhillips rose 2 per cent to $71.45 after it said it is increasing its quarterly dividend to 66 cents a share from 55 cents, and has authorised the repurchase of as much as $10 billion in shares.

MGIC, the largest private US mortgage insurer, jumped 9.4 per cent to $10.03.

Ford Motor gained 3.3 per cent to $16.48. The second-largest US automaker will redeem $2.98 billion of convertible notes in March as the company works to gain an investment-grade credit rating.

Kraft dropped 1.7 per cent to $30.58.

The world’s second- largest food company lowered its full-year earnings forecasts because of rising commodity costs.

Expedia tumbled 18 per cent to $21.19. – (Bloomberg/Reuters)