US stocks rise on oil surge, Dell earnings

NEW YORK: US stocks powered higher Wednesday on the back of surging commodity prices and better-than expected earnings from computer maker Dell.

The Dow Jones Industrial Average closed 80.60 points (0.65 percent) higher at 12,560.18.

The S&P 500 -- a broader measure of the markets -- advanced 11.70 points (0.88 percent) to 1,340.68, while the tech-heavy Nasdaq Composite leaped 31.79 points (1.14 percent) to 2,815.00.

"After three straight losing days for the Dow, the major market indexes seemed bound and determined to regain some ground today," said Elizabeth Harrow at Schaeffer's Investment Research.

The equities markets shrugged off the minutes of the Federal Reserve's April 26-27 policy-setting meeting, which showed participants generally saw the recent rise in inflation as "transitory."

The minutes also revealed Federal Open Market Committee debate on future policy after the central bank completes its $600 billion bond purchase program in June as planned.

"The key takeaway here is that the FOMC has admitted that it has started real discussions on how to gradually unwind the quantitative-easing measures," said Jon Ogg at 24/7WallSt.com.

A wave of risk appetite swept commodities higher, with New York crude oil leaping 3.3 percent to $100.10 a barrel.

Dow component ExxonMobil, the biggest of the blue chips, climbed 1.8 percent to $81.84 as crude oil rose more than $3 a barrel in New York.

Chevron, also on the Dow, soared 2.4 percent to $102.86.

Countering Hewlett-Packard's glum forecast a day earlier, computer giant Dell beat expectations by nearly tripling first-quarter profit from a year ago to $945 million.

Dell's shares jumped 5.3 percent to $16.75.

Target brought mixed news. The big-box discounter beat expectations with a 2.7 percent rise in net earnings in the first quarter, helped by strong returns in its credit card business.

But chief executive Gregg Steinhafel said retail sales had been weaker than expected.

"Our guests remain cautious in their spending," he said. Target fell 1.6 percent to $49.96.

The bond market weakened. The yield on the 10-year Treasury note rose to 3.17 percent from 3.12 percent late Tuesday, while that on the 30-year bond climbed to 4.29 percent from 4.23 percent.

Bond prices and yields move in opposite directions.