* Microsoft touches 12-yr high as CEO search narrows
* Tesla a big loser after results, outlook
* Barracuda Networks jumps in debut in busy IPO session
* Indexes: Dow up 0.6 pct, S&P up 0.3 pct, Nasdaq down 0.2
By Luke Swiderski
NEW YORK, Nov 6 U.S. stocks rose on Wednesday
buoyed by strong economic data from Europe, while investors
bought a flurry of new public offerings one day ahead of
Twitter's much-anticipated IPO.
German industrial orders rose by more than expected, which
is significant as the country is the economic engine of the euro
"All told, it's been a pretty good morning - you have had
strong overseas data," said Dan Greenhaus, chief strategist at
BTIG in New York. Dutch banking and insurance group ING
helped European equities set a five-year high after the
company's earnings beat expectations.
Greenhaus also noted recent statements from U.S. central
bankers that point to an extended period of accommodative
central bank policy. New research from Federal Reserve
economists makes the case for more aggressive action by the U.S.
central bank to drive down unemployment.
Microsoft Inc had the biggest positive influence on
the S&P 500 after Reuters reported that the company narrowed its
CEO search to about five people. The shares rose $1.35, or 3.7
percent, to $37.99. The stock touched its highest level since
June 2001 earlier in the session.
The Dow Jones industrial average rose 88.17 points or
0.56 percent, to 15,706.39, the S&P 500 gained 4.69
points or 0.27 percent, to 1,767.66 and the Nasdaq Composite
dropped 9.129 points or 0.23 percent, to 3,930.735.
Tesla Motors Inc shares slumped 13.3 percent to
$153.02 after the electric car maker forecast a
weaker-than-expected fourth-quarter profit and its third-quarter
Model S deliveries disappointed some analysts. Shares are up 350
percent for the year, and the stock has been a target of
short-sellers who see it as overvalued.
The equity market also saw support from a host of initial
public offerings, with six new issues starting to trade on
Wednesday, a day ahead of Twitter's IPO.
Barracuda Networks Inc shares jumped
26.3 percent to $22.7 on its first trading day.
According to Thomson Reuters data, if all 13 scheduled IPOs
price this week, it will be the busiest week of the year in
terms of number of primary issues since September 2007.
"One of the barometers for the health of market conditions
we look at is the ability for the market to absorb a large
amount of IPOs," said Art Hogan, managing director at Lazard
Capital Markets in New York.
Ralph Lauren Corp shares advanced 3.7 percent to
$177.52 after the designer clothing company raised the lower end
of its full-year sales forecast on the expectation of strong
gains during the holiday quarter, and increased its dividend.