While you were sleeping: Solid earnings, housing data

While you were sleeping: Solid earnings, housing data

(BusinessDesk) February 17 - Stocks on Wall Street rose after an increase in U.S. housing starts and earnings of Dell Inc. surpassed expectations.

Equities gave up some of their earlier gains, while the U.S. currency fell and oil prices jumped, after Israel's foreign minister said two Iranian warships planned to sail through the Suez canal en route to Syria.

"With a market that has run as far and fast as this one has, clearly negative headlines, like the ones about Israel and Iran, can have a negative impact," Gary Flam, portfolio manager at Bel Air Investment Advisors in Los Angeles, told Reuters.

In early afternoon trading, the Dow Jones Industrial Average rose 0.32%, the S&P 500 Index gained 0.38% and the Nasdaq Composite Index climbed 0.49%.

U.S. economic indicators bolstered the market, with housing starts soaring 15%in January, compared with the 1.9% gain forecast in a Bloomberg survey.

There was good news on the earnings front, too. Deere & Co, the world’s largest farm-equipment maker, raised its 2011 net income forecast by 19%.

Dell Inc soared after the personal-computer maker reported fourth-quarter profit that surpassed the average of estimates from analysts surveyed by Bloomberg by 44%.

Brent crude rose to the highest level since September 2008 on the Iranian naval contingent described by Israel’s Foreign Minister Avigdor Lieberman, which could spell the closest-ever encounter by the forces of the two old foes, though it’s not seen as a significant military threat.

"Tonight, two Iranian warships are meant to pass through the Suez Canal to the Mediterranean Sea and reach Syria, something that has not happened in many years," Lieberman said in a closed-door speech to Jewish leaders, a transcript of which was issued by his office.

"To my regret, the international community is not showing readiness to deal with the recurring Iranian provocations. The international community must understand that Israel cannot forever ignore these provocations."

Brent crude rose US$2.40 to US$104.04 at 12.08pm EST. Earlier in the day it reached US$104.52.

The U.S. dollar fell 0.37% against a basket of its major counterparts.

Investors flocked to the perceived safety of gold. Spot gold rose as high as US$1,381.40 an ounce. It was bid at US$1,380.70 an ounce at 1711 GMT, against US$1,372.95 late in New York on Tuesday.

In Europe, stocks advanced on solid earnings data by Societe Generale and Heineken NV, which both surpassed forecasts.

The benchmark Stoxx 600 Index rose 0.4% to the highest close since August 2008.

(BusinessDesk)

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