By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose sharply Tuesday as
gold bounced back from its biggest decline in decades and earnings
from Coca-Cola Co. and Goldman Sachs Group Inc. topped
expectations.
"Fundamentally we feel good about the earnings that are coming
through, it looks like it's going to be the same as the last few
quarters," with roughly 60% beating expectations, 20% matching and
20% falling under, said Chip Cobb, portfolio manager at BMT Asset
Management at the Bryn Mawr Trust Co. in Bryn Mawr, Pa.
"We hope and pray that Boston is a singular event, and that's
all there is going to be," Cobb said of Monday's bombings at the
Boston Marathon that killed three people and injured 176 others,
with 17 still in critical condition.
On Tuesday, the Dow Jones Industrial Average (DJI) recouped a
large chunk of its 265-point loss the prior day, up 119.80 points
to 14,719.
The S&P 500 index (SPX) added 15.91 points to 1,568.27, with
materials leading the gains that included all 10 of its major
sectors.
The Nasdaq Composite (RIXF) rose 35.95 points to 3,252.39.
Advancers ran ahead of decliners by a 4-to-1 ratio on the New
York Stock Exchange, where 262 million shares traded as of 11:45
a.m. Eastern.
Composite volume surpassed 1.4 billion.
On the New York Mercantile Exchange, gold futures for June
delivery (GCM3) climbed $30.40 to $1,391.5 an ounce, recovering
after their steepest decline since 1983.
Ahead of the market open, data showed U.S. housing starts rising
7% in March, exceeding analyst expectations, while consumer
inflation fell 0.2% last month and industrial production increased
0.4%.
Shares of Dell Inc. (DELL) were ahead 0.4% after the
personal-computer maker said a special committee of its board had
reached an agreement with billionaire investor Carl Icahn to cap
his share ownership as Dell mulls takeover offers from him, a group
led by CEO Michael Dell and buyout specialist Blackstone Group.
Goldman Sachs (GS) shares erased initial gains after the
investment bank reported first-quarter results that beat Wall
Street expectations, but Chairman and CEO Lloyd Blankfein took a
cautious tone.
Coca-Cola Co.'s (KO) shares rose 5.3% after the beverage maker
reported first-quarter results that beat expectations, while
retailer Target Corp. (TGT) warned first-quarter earnings would
come in below expectations, with its shares off 0.7%.
BlackRock Inc. (BLK), the biggest U.S. provider of
exchange-traded funds, topped Wall Street forecasts with a 10% rise
in first-quarter profit. U.S. Bancorp (USB)matched earnings
forecasts, while revenue saw an unexpected drop.
Johnson & Johnson(JNJ) gained 2.1% after the maker of drugs
and medical devices reported first-quarter revenue that beat
expectations.
After Tuesday's close, internet-search engine Yahoo Inc. (YHOO)
will report on its first quarter, with analysts looking for
confirmation its steady rebound remains intact. See: Yahoo
sentiment rising ahead of results.
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