* Goldman Sachs, Coca-Cola, Johnson & Johnson post results
* Spanish bond yields dip
* US housing starts fall, new permits jump
* Indexes up: Dow 1.1 pct, S&P 1.1 pct, Nasdaq 1.4 pct
By Edward Krudy
NEW YORK, April 17 U.S. stocks rose on Tuesday
as investors welcomed a slew of corporate results and as a
decline in borrowing costs for Spain eased concerns about
Europe's debt crisis.
Coca-Cola Co, Goldman Sachs Group Inc and
Johnson & Johnson all posted profits that beat analyst
forecasts and lifted expectation for earnings in general. Of the
39 S&P 500 companies reporting earnings so far, 74.4 percent
have beat analyst expectations, according to Thomson Reuters
"Expectations were fairly low coming into first-quarter
earnings season, and so far, the news has been surprisingly
good," said Mark Luschini, chief investment strategist at Janney
Montgomery Scott in Philadelphia.
"We are accumulating some evidence that one, earnings are
matching or exceeding expectations, and two, even in light of
what's going on in Europe and the trepidation with regard to
global growth, companies are able to continue to respond
positively in terms of profitability."
Although not all the shares of reporting companies rose, the
results helped ease fears that earnings could start to tail off
Better-than-expected results from Spanish 12-month and 18
month bill sales pushed yields on Spain's 10-year bond below 6
percent, but a longer-term debt auction later in the week could
be a more telling test. Spanish debt yields have jumped recently
on concerns about the nation's fiscal stability.
The Dow Jones industrial average gained 147.59
points, or 1.14 percent, to 13,069.00. The Standard & Poor's 500
Index added 15.17 points, or 1.11 percent, to 1,384.74.
The Nasdaq Composite Index rose 40.61 points, or 1.36
percent, to 3,029.01.
The S&P 500 continues to trade around its 50-day moving
average after sinking below that level for the first time in
more than 3 months last week. The level, currently at 1,377.35,
is closely watched by traders.
Coca-Cola climbed 2.7 percent to $74.35 as one of the top
boost's to the Dow industrials after the world's largest soft
drink maker reported a higher quarterly profit.
Goldman Sachs edged up 0.1 percent to $117.89 after
first-quarter earnings fell from a year earlier but were better
than many analysts had anticipated.
"Earnings are coming in well enough to support the market
and stabilize any significant downdraft. Spain specifically with
the 10-year yield topping 6 percent, that is a headline that
really instills fear into the market." said Peter Kenny,
managing director at Knight Capital In Jersey City, New Jersey.
Johnson & Johnson shares slipped 0.2 percent to $63.85 after
posting a higher-than-expected quarterly profit as revenue fell
This week, 86 S&P 500 companies are scheduled to report
Economic data in the United States was mixed as
groundbreaking on U.S. homes fell unexpectedly in March, but
permits for future construction rose to their highest level in 3
1/2 years. The PHLX housing index gained 1.6 percent.
A Federal Reserve report showed U.S. industrial output was
flat for a second straight month in March, held back by a drop
in manufacturing, and capacity utilization, a measure of how
fully firms are using their resources, fell to 78.6 percent from
78.7 percent in February.
International Business Machines Corp reports
earnings after the bell on Tuesday, and investors are hoping
strong software demand will make for a repeat of last year's
first-quarter performance, when the company raised its full year
A unit of Toshiba Corp is in talks to buy IBM
Corp's point-of-sale terminal business, which includes cash
registers, a source familiar with the deal said on Tuesday. IBM
shares gained 1.2 percent to $205.18 to lead the Dow.
Yahoo Inc is also due to unveil earnings after the
close, but the report may be overshadowed by comments from its
new chief executive, Scott Thompson, who is expected to lay out
his vision for the struggling web pioneer. Shares gained 2.1
percent to $15.09.
Apple Inc shares gained 2.4 percent to $594.21,
putting shares of the iPad maker on track to snap a 5-day losing
streak, which sent shares down 8.8 percent.