US stocks rise ahead of Bernanke testimony

NEW YORK: US stocks closed higher Tuesday after a strong earnings report
from Home Depot and as the market anticipates Wednesday's testimony in
Congress by Federal Reserve Chairman Ben Bernanke.


The Dow Jones Industrial Average finished up 52.30 (0.34 per cent) at 15,387.58.


The broad-based S&P 500 added 2.87 (0.17 per cent) at 1,669.16,
while the tech-rich Nasdaq Composite Index increased 5.69 (0.16 per
cent) to 3,502.12.


Bernanke will be watched on Wednesday for signs that the Fed might
be ready to alter its quantitative easing (QE) policy, or project just
when and how it might reel in its aggressive bond purchases.






FTN Financial's Chris Low expects a status-quo update.


"I think he will argue that QE is effective policy, that it is
bearing fruits, but I don't think he is going to tip his hands in terms
of what will happen next with QE, whether they will make it bigger or
smaller," Low said.


Pharmaceutical firm Merck led the Dow gainers with a 4.7 per cent rise on heavy volume, with no clear reason behind it.


Home Depot rose 2.5 per cent to US$78.71 after its first-quarter
earnings came in at 83 cents per share, compared with expectations of 77
cents. The company boosted its full-year profit forecast, citing the
housing recovery.


Apple lost 0.7 per cent as chief executive Tim Cook was grilled in
Congress over the company's use of offshore loopholes to avoid paying
taxes on tens of billions of dollars in profits.


Luxury retailer Saks rose 11.3 per cent after reporting strong 5.9
per cent sales growth for the first quarter, handily beating forecasts
of 2.2 per cent.


The shares soared another 19 per cent after hours following a newspaper report that the company was seeking a buyer.


JPMorgan Chase added 1.4 per cent after chief executive Jamie Dimon
beat back a shareholder challenge to his retaining the chairman's post
in the wake of the London Whale trading losses. -- AFP