* Apple’s stock scores best day since November 2008
* Fed keeps view on low rates; says stands ready to help
* Boeing up after earnings, Caterpillar slides
* Dow up 0.7 pct, S&P; up 1.3 pct, Nasdaq up 2.2 pct
By Caroline Valetkevitch
NEW YORK, April 25 (Reuters) – U.S. stocks rose on Wednesday
and the Nasdaq was on track for its best percentage gain for
2012 a day after Apple’s blowout results further lifted optimism
about the strength of earnings.
Pushing the S&P; 500 to its session high in afternoon trade,
Federal Reserve Chairman Ben Bernanke said the Fed stands ready
to act if further economic help is needed.
Earlier, the Fed repeated its promise to leave interest
rates on hold until at least late 2014.
Shares of Apple, which has the world’s biggest
market capitalization, jumped 9 percent to $610.56 and accounted
for about 28 percent of day’s S&P; 500’s gain, according to
Standard & Poor’s. The stock hit a session high at $618.
The results boosted S&P; 500 companies’ earnings growth to an
estimated 6.9 percent for the first quarter, up from an estimate
of 4.6 percent before Apple.
Apple’s stock had sold off recently, partly on fears that
its earnings could disappoint.
“The (Fed) statement and the market’s reaction were both as
expected,” said Erik Davidson, deputy chief investment officer
of Wells Fargo Private Bank in San Francisco.
“Apple … is having a big impact on the market and really
pulling up the Nasdaq because of how big it is.”
The Dow Jones industrial average was up 86.09 points,
or 0.66 percent, at 13,087.54. The Standard & Poor’s 500 Index
was up 18.42 points, or 1.34 percent, at 1,390.39. The
Nasdaq Composite Index was up 66.19 points, or 2.23
percent, at 3,027.79.
The earnings season so far has been stronger than expected.
With 200 of the S&P; 500 companies reporting, three-fourths have
topped estimates, according to Thomson Reuters data.
Boeing Co posted higher quarterly profit, helped by
increased commercial aircraft sales, and raised its earnings
forecast for the year. Boeing’s stock shot up 5.3 percent to
$77.11, giving the Dow its biggest lift.
On the down side, Caterpillar Inc shares dropped 4.8
percent to $103.22 after it said profit rose 29 percent. But
the heavy equipment maker stoked Wall Street’s fears about
emerging markets by repeatedly citing slowdowns in economic
growth in China and Brazil.
In a troubling sign, March durable goods orders fell 4.2
percent in the biggest drop in three years. The report was the
latest to show softness in U.S. economic data.
