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U.S. stocks advance after the open; Dow Jones up 0.43%

Published 01/11/2011, 10:01 AM
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Investing.com – U.S. stocks were up after the open on Tuesday, following upbeat corporate earnings reports and after the European Central Bank intervened to buy Portuguese and Irish government debt for the second successive day.

During early U.S. trade, the Dow Jones Industrial Average climbed 0.43%; the S&P 500 index gained 0.33%, while the Nasdaq Composite index was up 0.15%.

Shares in the third largest U.S. homebuilder Lennar soared 5.87% after it said revenue in the fourth quarter totaled USD860.1 million, exceeding analysts’ expectations for revenue of USD815.7 million.     
   
Shares in the largest U.S. department store chain Sears surged 8.68% after the company lifted its fourth quarter earnings forecast, surpassing analysts’ projections.

But shares of the largest U.S. aluminum producer Alcoa dropped 1.58% after it reported that sales in the fourth quarter rose by 4% to USD5.65 billion, falling short of analysts’ expectations for revenue of USD5.71 billion. The company also said that fourth quarter net income rose to USD258 million, compared to a loss of USD277 million a year earlier.   

Elsewhere, shares in the financial sector performed strongly, tracking earlier gains by their European and Asian counterparts.

Shares in the largest U.S. lender Bank of America jumped 1.39%, rival Citigroup saw shares add 1.01%, while U.S. listed shares of Barclays rallied 3.92% after Societe Generale upgraded the lender and named it as its top selection amongst European banks.

In the technology sector, shares in graphics chip designer Nvidia added 0.67% after chip giant Intel agreed to pay USD1.5 billion to resolve a patent dispute between the two companies dating back to 2004. Shares in Intel shed 0.80% following the news. 

Elsewhere, shares in the world’s second largest maker of computer microprocessors Advanced Micro Devices tumbled 6.20% after the chip giant announced late Monday that its chief executive Dirk Meyer had resigned unexpectedly.

Also Tuesday, shares in the world’s largest computer maker Hewlett-Packard jumped 1.65% after the stock was upgraded to ‘buy’ at UBS.

Across the Atlantic, European stock markets were broadly higher. The EURO STOXX 50 jumped 0.78%, France’s CAC 40 surged 1.02%, Germany's DAX gained 0.81%, while Britain's FTSE 100 rallied 1.05%.

Later in the day, the U.S. was to publish official data on wholesale inventories.


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