Wall Street higher after solid start to earnings season
US stocks rose on Tuesday as the first major set of fourth-quarter earnings came in largely higher than expected, suggesting that the recent run-up in anticipation of results was justified.
January 11, 2011 / 21:48 IST
US stocks rose on Tuesday as the first major set of fourth-quarter earnings came in largely higher than expected, suggesting that the recent run-up in anticipation of results was justified.
Stocks have rallied in recent weeks in part on hopes of stronger corporate profits, with the S&P up 8.1% since the start of December.Alcoa Inc posted a quarterly profit that topped Wall Street's expectations, though revenue slightly missed the analyst average estimate. The aluminum maker also forecast a 12% rise in demand this year.Both Sears Holding Corp and Tiffany & Co raised their profit outlooks, citing strong sales."Along with Alcoa, these raised outlooks suggest a stronger-than-expected season ahead," said said Adam Sarhan, chief executive at the New York-based Sarhan Capital.The Dow Jones industrial average was up 52.63 points, or 0.45%, at 11,690.08. The Standard & Poor's 500 Index was up 6.19 points, or 0.49%, at 1,275.94. The Nasdaq Composite Index was up 11.52 points, or 0.43%, at 2,719.32.Alcoa shares slid 1.2% to USD 16.30 but are up 24% since the start of December. Sears rose 8.8% to USD 76.77, and Tiffany rose 2.3% to USD 62.41.Homebuilder Lennar Corp rose 6.1% to $20.10 after posting a fourth-quarter profit sharply higher than expected.Supermarket chain Supervalu Inc shed 12.7% to USD $7.50 after posting an adjusted third-quarter profit that missed expectations.US wholesale inventories for November will be reported at 10 am (1500 GMT) on a light day for economic data. Inventories were expected to gain 1.0 percent after a 1.9% rise in October. Estimates for November ranged from 0.5-2.0% in a Reuters poll. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
