Energy shares powered stocks as better-than-expected earnings from Valero Energy (VLO)
The Dow Jones Industrial Average added 72.49 points, or 0.5%, to 13954.42, its highest close since October 2007. The Standard & Poor's 500-stock index rose 7.66 points, or 0.5%, to 1507.84. The Nasdaq Composite Index edged down 0.64 point, or less than 0.1%, to 3153.66.
Energy shares led eight of 10 S&P 500 sectors higher as Valero, the world's largest independent refiner by processing capacity, jumped $4.96, or 13%, to $43.77, after reporting robust fourth-quarter earnings amid lower crude-oil costs.
Ford Motor (F)
"The market is starting to buy the dips rather than sell the rallies," said Dan Veru, chief investment officer at Palisade Capital Management, which manages $3.8 billion. "Big allocators of capital seem to be modestly rethinking their equity allocation. It will make pullbacks in the market somewhat shallow and will position us to go higher later this year."
On the economic front, the Conference Board's consumer-confidence index for January fell more than expected. The S&P/Case-Shiller 20-city home-price index for November rose from a year earlier, matching the median estimate of economists surveyed by Dow Jones Newswires.
European markets rose, with the Stoxx Europe 600 rising 0.3% to its highest level since February 2011 amid better-than-expected German confidence data. The U.K.'s FTSE 100 gained 0.7% and closed above 6300 for the first time since May 2008. It was also its fifth consecutive finish in positive territory. Germany's DAX added 0.2%, and France's CAC-40 edged up 0.1%.
Asian markets were mostly higher, boosted by strength in Japanese banking stocks. Japan's Nikkei Stock Average tacked on 0.4%. Australia's S&P/ASX 200, which was closed Monday, climbed 1.1%, its ninth consecutive advance and it highest level since April 2011.
Gold gained 0.5%, to settle at $1,660.70 a troy ounce. The dollar edged higher against the yen but eased versus the euro. The 10-year Treasury note fell in price to yield 1.988%.
Eli Lilly (LLY)
"By and large, most companies that have reported have beaten their forecasted results," said Nathan Rowader, who helps oversee $5.8 billion as director of investments at Forward Management.
D.R. Horton (DHI)
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