US stocks climbed yesterday, recovering a day after the market’s biggest sell-off since November, as stronger-than-expected earnings brightened the profit picture.
Dell’s stock rose after the world’s No3 computer maker agreed to be taken private in a $24.4bn deal, the largest leveraged buyout since the 2008-2009 financial crisis. The stock gained 1.1 per cent to $13.42.
All 10 S&P sectors were higher, and the S&P 500 and Nasdaq gained more than one per cent.
The market’s bounce follows a sell-off on Monday that gave the S&P 500 its biggest percentage decline since mid-November.
The benchmark remains up six per cent since the start of the year and is less than four per cent away from its all-time closing high of 1,565.15 from October 2007.
Analysts said fourth-quarter results have been among factors helping to boost stocks. Yesterday Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 3.3 per cent to $29.38.
“There’s not a huge upside surprise by any means, but we’re definitely seeing slightly better-than-expected earnings overall,” said Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.
The Dow Jones industrial average was up 99.22 points, or 0.71 per cent, at 13,979.30. The Standard & Poor’s 500 Index was up 15.58 points, or 1.04 per cent, at 1,511.29. The Nasdaq Composite Index was up 40.41 points, or 1.29 per cent, at 3,171.58.
The market shot higher at the start of the year after US lawmakers were able to come to a last-minute agreement to avoid a national “fiscal cliff,” but questions on spending cuts remain.