Dow Jones: 12,760.36 (+75.68) SP 500: 1,357.16 (+10.87) Nasdaq:2,871.89 (+28.64) : US STOCKS rose for a third day yesterday, ashigher than estimated profit forecasts and Microsoft's purchase ofSkype Technologies bolstered optimism that earnings and takeoverswill continue to fuel the rally.
Dean Foods, the largest US milk processor, jumped 11 per centafter its earnings forecast beat analysts' estimates.
Microsoft fell 0.6 per cent after agreeing to buy Skype for $8.5billion to expand its Internet presence after past failures.
Titanium Metals gained 2.1 per cent, pacing gains in raw-material producers, as metal prices advanced before the release offigures that may show weaker inflation in China.
The Dow Jones industrial average rose 75.68 points, or 0.60 percent, at 12,760.36.
The Standard Poor's 500 Index climbed 10.87 points, or 0.81 percent, at 1,357.19.
The Nasdaq Composite Index advanced 28.64 points, or 1.01 percent, at 2,871.89.
"The earnings season has been a pleasant surprise," said MarkLuschini, chief investment strategist at Philadelphia-based JanneyMontgomery Scott LLC.
"There wasn't a great deal of optimism that earnings were goingto beat estimates with the vigour that we've seen. On top of that,we're getting big MA deals. That's an indication that companies havea lot of cash and will continue to do deals," he said.
Prices of goods imported into the US rose more than forecast inApril, driven by gains in fuel and food that may put pressure onsome companies to raise prices.
The 2.2 per cent increase in the import price index followed arevised 2.6 per cent gain in March, Labor Department data showed.
Economists projected a 1.8 per cent increase, according toBloomberg. Prices excluding fuel advanced 0.6 per cent.
Financial, technology and health-care stocks offer "value", BillMiller, the chairman and chief investment officer of Legg MasonCapital Management, wrote in the Financial Times yesterday.
Boston Scientific was the most heavily traded stock on the BigBoard after chief executive Ray Elliot said he will step down at theend of 2011.
The surprise announcement sent shares of the medical device makerdown 8.9 per cent to $7.02. - (Bloomberg/Reuters)
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