US REPORT: Dow Jones:11,670.75 (+93.24) S&P 500:1,271.87 (+14.23) Nasdaq: 2,691.52 (+38.65)
US STOCKS rallied yesterday, sending benchmark indexes up the most in a month, as analyst ratings upgrades and growth in manufacturing bolstered speculation the rally in equities will continue in 2011.
“The market is rising on spillover from the best December in nearly 20 years, and the economy continues to perform better than most people think,” said Jeffrey Saut, chief investment strategist at Raymond James and Associates in St Petersburg, Florida, who helps manage $240 billion.
The first trading day of the month is historically better than average for the US stock market and it has been particularly profitable in recent months.
Bank of America rose 6.3 per cent to $14.19. The biggest US bank by assets will take a $2 billion impairment charge and a $3 billion provision in the fourth quarter to resolve mortgage-repurchase claims by Freddie Mac and Fannie Mae.
Alcoa shares rose 2.7 per cent to $15.80 after Deutsche Bank raised its recommendation to “buy”from “hold” on aluminum prices and operational performance.
General Motors shares advanced 0.6 per cent to $37.08. The automaker was rated a new “buy” at Goldman Sachs, which said the company is set for profitability not seen since the 1970s.
The S&P 500’s Automobiles and Components Index rose the second- most among 24 industries in the benchmark index, climbing to its highest level since November 2007 after a 2.9 per cent gain.
Amazon.com climbed 2.3 per cent to $184.22. Morgan Stanley said Amazon’s revenue may jump 194 per cent to $100 billion by 2015.
Morgan Stanley rates the shares “overweight”. An index of retail stocks in the S&P 500 rose 1.1 per cent to its highest level since July 2007.
Boeing advanced 1.7 per cent to $66.37 after the company was upgraded to “overweight” from “neutral” at JPMorgan, which said the earnings outlook for the core commercial aircraft business continues to improve.
Exxon Mobil, the world’s largest oil producer, increased 2 per cent to $74.55.
Tyson Foods dropped the most in the S&P 500, sliding 4.7 per cent to $16.42. The largest US chicken processor was cut to “market perform” from “outperform” at BMO Capital Markets. – (Bloomberg)
