Wall Street gets late-day boost from Supervalu

Dow Jones: 12,285.15 (+14.16) S&P 500: 1,314.52 (+0.11) Nasdaq: 2,760.22 (–1

Dow Jones: 12,285.15 (+14.16) S&P 500: 1,314.52 (+0.11) Nasdaq: 2,760.22 (–1.30)US STOCKS rose yesterday, erasing an early slump, as the House approved a spending Bill that will avert a government shutdown and Supervalu led a rally in consumer staples shares after earnings topped analysts' estimates.

Supervalu surged 17 per cent for the top gain in the Standard and Poor’s 500 Index after the owner of Save-A-Lot and Albertsons grocery stores also projected full-year profit that beat projections.

Exxon Mobil and Chevron climbed at least 0.3 per cent as oil rose for a second day on reports that Saudi Arabia reduced output this month.

Goldman Sachs slid 2.7 per cent after Senator Carl Levin requested a federal probe of the bank’s dealings in mortgage securities.

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The S&P 500 increased less than 0.1 per cent to 1,314.52 at the close in New York, erasing an earlier 0.9 per cent decline.

The benchmark gauge halted a four-day slump, its longest since November, as a Federal Reserve report fuelled optimism about the economy.

“The government is still running,” said Richard Sichel, who oversees $1.6 billion as chief investment officer at Philadelphia Trust. “That’s a sigh of relief. Investors are focusing on the good economic fundamentals and solid corporate earnings. Yes, we do have global issues, European debt concern, higher commodities prices. Still, the stock market is very resilient.”

The SP 500 has risen 4.5 per cent in 2011, extending last year’s 13 per cent gain, amid government stimulus measures and higher than estimated corporate profits.

The index, which has gained as much as 99 per cent since March 2009, last week rose to near the highest closing level for the rally, according to data compiled by Bloomberg.

Earlier declines came after more Americans unexpectedly filed first-time claims for unemployment insurance last week, reflecting greater than normal volatility at the end of the quarter.

Applications for jobless benefits rose 27,000 in the week ended April 9th to 412,000, the most in two months, Labor Department figures showed. Economists projected claims would be little changed at 380,000, according to a Bloomberg News survey.

– (Bloomberg)