New York: U.S. stocks gained on Tuesday as record oil prices lifted energy shares and stronger-than-expected quarterly results at several U.S. regional banks boosted shares of financial companies.
The regional banks, including U.S. Bancorp and Regions Financial Corp, expressed confidence they could weather credit losses from the housing slump. The S&P financial index ended up 1.1 per cent.
The positive tone continued after the closing bell. Intel Corp posted revenue just ahead of Wall Street's expectations and stuck to its full-year profit margin target, driving its shares up 7.4 per cent to $22.45 in extended trade and lifting S&P stock index futures. Intel closed on Nasdaq at $20.91, up 1.1 per cent, ahead of the earnings report.
Oil prices hit a record above $114 a barrel on supply issues, rising demand in China and the persistent weakness of the dollar.
During the regular session, Exxon Mobil rose 1.2 per cent and gave the top-weighted boost to both the Dow average and the S&P 500.
But the market may have rung up bigger gains if not for a warning from State Street Corp that it faces billions of dollars of unrealised losses on some investments. The financial services company's shares fell 9.9 per cent to $69.23.
"Sentiment has been pretty negative, but it has improved a bit today as you had a few decent earnings reports this morning," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
"The financials are a bit oversold so we're seeing a bounce there, and there's also an expectation JPMorgan's earnings will be good tomorrow."
The Dow Jones industrial average gained 60.41 points, or 0.49 per cent, to end at 12,362.47, while the Standard & Poor's 500 Index climbed 6.11 points, or 0.46 per cent, to 1,334.43. The Nasdaq Composite Index rose 10.22 points, or 0.45 per cent, to close at 2,286.04.
First-quarter profit exceeded forecasts at U.S. Bancorp, Regions Financial, M&T Bank Corp and Marshall & Ilsley Corp. U.S. Bancorp operates mainly west of the Mississippi River, Regions in the Southeast, M&T in mid-Atlantic states, and Marshall & Ilsley in Wisconsin and several other states.
The regional banks' results contrasted with the unexpected loss posted Monday by Wachovia Corp, the nation's fourth-largest bank.
Regions Financial Corp shares jumped 8.4 per cent to $20.12, M&T Bank Corp climbed 6.3 per cent to $85.86, U.S. Bancorp rose 1.7 per cent to $32.21 and Marshall & Ilsley added 1.5 per cent to $21.94.
Shares of JPMorgan Chase, which reports earnings on Wednesday, advanced 1.5 per cent to $42.12.
Keeping gains in check, though, was Northrop Grumman Corp which was among the top drags on the S&P 500. Northrop Grumman's stock fell 6.9 per cent to $71.57 after the defense contractor said it expects to take a first-quarter pretax charge related to delays in its amphibious-assault-ship program due to quality concerns.
Economic data earlier in the day painted a mixed picture.
The New York Federal Reserve Bank's Empire State manufacturing index showed some stabilisation in April after tumbling to a record low in March, according to an index compiled by the New York Fed.
Meanwhile, the Labor Department's overall Producer Price Index jumped 1.1 per cent in March -- or nearly twice the gain of 0.6 per cent that economists had expected. But the core PPI, which excludes volatile food and energy prices, rose 0.2 per cent last month, in line with economists' expectations.
Trading was light on the New York Stock Exchange, with about 1.23 billion shares changing hands, falling short of last year's estimated daily average of roughly 1.90 billion, while on Nasdaq, about 1.90 billion shares traded, also below last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones by a ratio of about 3 to 2 on the NYSE and by about 5 to 4 on Nasdaq.
The regional banks, including U.S. Bancorp and Regions Financial Corp, expressed confidence they could weather credit losses from the housing slump. The S&P financial index ended up 1.1 per cent.
The positive tone continued after the closing bell. Intel Corp posted revenue just ahead of Wall Street's expectations and stuck to its full-year profit margin target, driving its shares up 7.4 per cent to $22.45 in extended trade and lifting S&P stock index futures. Intel closed on Nasdaq at $20.91, up 1.1 per cent, ahead of the earnings report.
Oil prices hit a record above $114 a barrel on supply issues, rising demand in China and the persistent weakness of the dollar.
During the regular session, Exxon Mobil rose 1.2 per cent and gave the top-weighted boost to both the Dow average and the S&P 500.
But the market may have rung up bigger gains if not for a warning from State Street Corp that it faces billions of dollars of unrealised losses on some investments. The financial services company's shares fell 9.9 per cent to $69.23.
"Sentiment has been pretty negative, but it has improved a bit today as you had a few decent earnings reports this morning," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
"The financials are a bit oversold so we're seeing a bounce there, and there's also an expectation JPMorgan's earnings will be good tomorrow."
The Dow Jones industrial average gained 60.41 points, or 0.49 per cent, to end at 12,362.47, while the Standard & Poor's 500 Index climbed 6.11 points, or 0.46 per cent, to 1,334.43. The Nasdaq Composite Index rose 10.22 points, or 0.45 per cent, to close at 2,286.04.
First-quarter profit exceeded forecasts at U.S. Bancorp, Regions Financial, M&T Bank Corp and Marshall & Ilsley Corp. U.S. Bancorp operates mainly west of the Mississippi River, Regions in the Southeast, M&T in mid-Atlantic states, and Marshall & Ilsley in Wisconsin and several other states.
The regional banks' results contrasted with the unexpected loss posted Monday by Wachovia Corp, the nation's fourth-largest bank.
Regions Financial Corp shares jumped 8.4 per cent to $20.12, M&T Bank Corp climbed 6.3 per cent to $85.86, U.S. Bancorp rose 1.7 per cent to $32.21 and Marshall & Ilsley added 1.5 per cent to $21.94.
Shares of JPMorgan Chase, which reports earnings on Wednesday, advanced 1.5 per cent to $42.12.
Keeping gains in check, though, was Northrop Grumman Corp which was among the top drags on the S&P 500. Northrop Grumman's stock fell 6.9 per cent to $71.57 after the defense contractor said it expects to take a first-quarter pretax charge related to delays in its amphibious-assault-ship program due to quality concerns.
Economic data earlier in the day painted a mixed picture.
The New York Federal Reserve Bank's Empire State manufacturing index showed some stabilisation in April after tumbling to a record low in March, according to an index compiled by the New York Fed.
Meanwhile, the Labor Department's overall Producer Price Index jumped 1.1 per cent in March -- or nearly twice the gain of 0.6 per cent that economists had expected. But the core PPI, which excludes volatile food and energy prices, rose 0.2 per cent last month, in line with economists' expectations.
Trading was light on the New York Stock Exchange, with about 1.23 billion shares changing hands, falling short of last year's estimated daily average of roughly 1.90 billion, while on Nasdaq, about 1.90 billion shares traded, also below last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones by a ratio of about 3 to 2 on the NYSE and by about 5 to 4 on Nasdaq.
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