US stocks rebound on strong Alcoa earnings

April 12th, 2012 - 6:03 am ICT by IANS  

New York, April 12 (IANS) US stocks rebounded Wednesday, snapping a five-day losing streak, after aluminum producer Alcoa reported better-than-expected earnings.

The Dow Jones industrial average gained 89.46 points, or 0.70 percent, at 12,805.39. The Standard & Poor’s 500 was up 10.12 points, or 0.74 percent, to 1,368.71. The Nasdaq Composite Index rose 25.24 points, or 0.84 percent, to 3,016.46, Xinhua reported.

Alcoa,the first S&P; 500 company reporting results, surprised investors with a first-quarter profits when the market was expecting a loss amid slumping aluminum prices. Its shares soared nearly 8 percent, easing concerns for a lackluster earnings season.

Adding to the gains, European Central Bank executive board member Benoit Coeure said the bank still had the ability to purchase the debt of euro-zone nations if needed, easing concerns over the region’s debt problems amid rising borrowing costs Italy and Spain.

The latest “Beige Book” from the US Federal Reserve painted a brighter outlook for the US economy, but it had little impact on the market.

The bank said the US economy continued to expand at a modest-to-moderate pace from mid-February through the end of March.

Apple once again drew focus Wednesday after the US government filed an antitrust lawsuit against the company and five major book publishers, saying they conspired to limit market competition in electronic book pricing.

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