Stocks surge on upbeat earnings
Caterpillar, UPS report strong first quarter, boost outlooks
New York ? Wall Street roared back to life Thursday as investors refocused on earnings news, shaking off concerns about rising interest rates that have dogged the market for almost two weeks.
Skittish investors had only to look to the day’s earnings for positive signals. Solid results from United Parcel Service Inc. and Caterpillar Inc. and a jump in advertising revenue at media conglomerate Viacom Inc. all bode well for the economy.
Reports from dozens of companies, including more than 70 listed on the S&P 500 and five Dow components, made Thursday one of the busiest days of the earnings season.
Among the best gainers on the Dow, Caterpillar soared $3.39, or 4.2 percent, to $84.10, after more than tripling its earnings and surpassing analysts’ estimates. The world’s largest manufacturer of construction equipment also raised its outlook for the year.
American International Group Inc., just added to the Dow this month, gained 50 cents to $73.70 after beating expectations, despite concerns that rising rates might hurt the financial sector. AIG’s profits rose 36 percent over the year-ago period on strong performance at its life insurance and retirement services operations.
Viacom, the owner of CBS, MTV and Nickelodeon, was down 13 cents at $41.02, after reporting big gains in advertising profits at its cable and television businesses as well as a one-time tax adjustment. Viacom’s reliance on ad revenue has raised questions among analysts in the past.
UPS added 74 cents to $71.94 on earnings powered by strong international growth, especially in China. The world’s largest shipping company also issued a bright outlook, especially for its business interests in Asia.
Merck & Co. was up 24 cents at $46.74 after the pharmaceutical firm said its profits were up 5 percent, beating estimates by a penny a share.

