(Corrects year of S&P 500 all-time intraday high to 2007 from
2011. The error occurred in earlier updates. In final paragraph
removes word "market")
* Bounce follows Monday sell-off
* Dell to go private in $24.4 bln deal, shares up
* Archer Daniels, Estee Lauder both up after results
* Indexes: Dow up 0.9 pct, S&P up 1.1 pct, Nasdaq up 1.3 pct
By Caroline Valetkevitch
NEW YORK, Feb 5 U.S. stocks climbed on Tuesday,
pushing the Dow above 14,000 a day after the market's biggest
sell-off since November, as stronger-than-expected earnings
brightened the profit picture.
All 10 S&P sectors were higher, and the S&P 500 and Nasdaq
gained more than 1 percent.
Dell Inc's stock rose after the world's No. 3
computer maker agreed to be taken private in a $24.4 billion
deal, the largest leveraged buyout since the 2008-2009 financial
crisis. The stock gained 1.3 percent to $13.44 after a delayed
The market's bounce follows a sell-off on Monday that gave
the S&P 500 its biggest percentage decline since mid-November.
Still, the benchmark is up about 5 percent since the start of
the year and is less than 5 percent away from its all-time
intraday high of 1,576.09 in October 2007.
Analysts said fourth-quarter results have been among the
positives for the market. On Tuesday, Archer Daniels Midland
reported revenue and adjusted fourth-quarter earnings
that beat expectations, boosted by strong global demand for
oilseeds. Shares rose 3.4 percent to $29.40.
"This quarter was one that had relatively low expectations
coming into it, but the beats on the earnings and on the revenue
side have been pretty good, particularly on the revenue side,"
said Mark Luschini, chief investment strategist at Janney
Montgomery Scott in Philadelphia.
"And in the aggregate so far, the earnings growth is just
under 5 percent, and that's relieved those who thought maybe the
earnings picture was deteriorating to the point where we would
see surprisingly poor earnings."
The Dow Jones industrial average was up 121.49
points, or 0.88 percent, at 14,001.57. The Standard & Poor's 500
Index was up 16.95 points, or 1.13 percent, at 1,512.66.
The Nasdaq Composite Index was up 40.79 points, or 1.30
percent, at 3,171.96.
Also in earnings, Estée Lauder Cos Inc reported a
higher quarterly profit and raised its full-year profit
forecast. The stock rose 5.7 percent to $64.52.
With results in for more than half of the S&P 500 companies,
69 percent have beaten profit expectations, compared with the 62
percent average since 1994 and the 65 percent average over the
past four quarters.
Fourth-quarter earnings for S&P 500 companies are expected
to rise 4.5 percent, according to the data, above the 1.9
percent forecast at the start of earnings season.
On the down side, McGraw-Hill shares slumped 7.5
percent to $46.51 after the Justice Department filed a civil
lawsuit against it seeking $5 billion over mortgage bond
ratings. Standard & Poor's, a McGraw Hill unit, was accused of
inflated ratings and understated risks out of a desire to gain
more business from investment banks.
On Monday, the stock suffered its worst one-day decline
since the 1987 market crash.
(Additional reporting By Angela Moon; Editing by Kenneth Barry)