US stocks surge ahead on earnings from Intel, JP Morgan

April 17th, 2008 - 6:50 am ICT by admin  

New York, April 17 (DPA) US stock indices surged to their highest one-day gain in two weeks Wednesday after technology and financial companies both posted earnings that were stronger than expected. Intel, the world’s largest chip maker, reported a 12-percent drop in first-quarter profits but a nine-percent rise in revenue to $9.7 billion, suggesting the US economic downturn did not significantly hurt sales.

JP Morgan Chase, which last month bought ailing US investment bank Bear Stearns, said profits fell 50 percent to $2.37 billion in the wake of the US home mortgage crisis. Shares rose as the earnings report matched or beat analysts’ expectations.

Investment bank heads, in comments over the past week, have suggested the credit crisis may be coming to an end.

The blue-chip Dow Jones Industrial Average gained 256.80 points, or 2.08 percent, to 12,619.27. The broader Standard & Poor’s 500 Index rose 30.28 points, or 2.27 percent, to 1,364.71. The technology-heavy Nasdaq Composite Index added 64.07 points, or 2.8 percent, to 2,350.11.

The US currency fell against the euro to 62.72 euro cents from 63.33 euro cents Tuesday. The dollar also edged down against the Japanese currency to 101.77 yen from 101.85 yen Tuesday.

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