U.S. stocks gain on earnings, energy stocks

10:11, April 21, 2010      

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U.S. stocks rose across the board on Tuesday as strong earnings from blue chips and rally in energy prices offset the Goldman fraud case.

The concerns brought by Goldman Sachs fraud case began to ease, and the bank giant reported a strong earnings that blew even the heftiest forecast. Earnings for Goldman rose 91 percent in the first quarter of 2010, to 3.46 billion U.S. dollars or 5.59 dollars a share. Revenues increased 36 percent to 12.78 billion dollars.

Upbeat results from blue chips boosted market sentiment and prompted investors' risk appetite. Coca-Cola Co. said Tuesday that its first-quarter profit rose 20 percent, as international growth, market-share gains and lower costs offset a continuing slump in North America.

Investors locked in profit after IBM released improved results late Monday, with weakness in that stock limiting the Dow's gains. IBM is the Dow's most heavily weighted component.

Johnson & Johnson reported higher quarterly earnings that beat estimates, as strong sales of medical devices overshadowed weaker sales of prescription drugs and consumer products.

The market is also focused on results from tech bellwethers Apple and Yahoo, which are due after the close of trading Tuesday.

Oil prices broke a three-day losing streak and rebounded back to above 83 dollars a barrel on Tuesday as upbeat earnings reports prompted risk appetite and European flights began to resume. Energy and basic material shares were boosted.

The Dow Jones Industrial Average rose 25.01, or 0.23 percent, to 11,117.06; the S&P 500 added 9.65, or 0.81 percent, to 1,207.17; and the Nasdaq rallied 20.20, or 0.81 percent, to 2,500.31.

Source: Xinhua


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