Optimism over economy boosts Wall Street

Dow Jones: 12,226.34 (+95.89) SP 500: 1,327.22 (+7.34) Nasdaq: 2,782.27 (+1.22):US STOCKS advanced, extending a third straight monthly gain for benchmark indexes, amid improving economic data and billionaire investor Warren Buffett's desire to make more acquisitions.

Crude oil fell the most in two weeks as Saudi Arabia offered to make up for supplies lost because of unrest in Libya.

“Warren Buffett is always out there to buy companies at the right price,” said E William Stone, who oversees about $105 billion as chief investment strategist at PNC Wealth Management in Philadelphia. “He has enough cash to do what he wants to do. On top of that, the economy continues to recover and earnings will not be affected by the situation in oil prices. We see pressure coming off the oil market.”

The Dow Jones industrial average gained 95.89 points, or 0.79 per cent, to end at 12,226.34.

The SP 500 advanced 7.34 points, or 0.56 per cent, to finish at 1,327.22.

The Nasdaq Composite Index added 1.22 points, or 0.04 per cent, to close at 2,782.27.

The SP 500 rose 3.2 per cent this month, extending this year’s gain to 5.5 per cent, amid government measures to stimulate the economy and higher-than-estimated corporate earnings.

Intel fell 1.8 per cent as JPMorgan Chase said the largest chipmaker may miss revenue estimates.

Berkshire Hathaway class B shares increased 2.8 per cent to $87.23 and class A shares rose 2.6 per cent to $130,820.

Walgreen added 3.3 per cent to $43.35. Morgan Stanley boosted its share-price estimate to $50 from $44, while raising its second-quarter profit forecast citing stronger-than- estimated sales stemming from flu trends.

Humana rose 3.9 per cent to $65.01. The biggest provider of US-backed health benefits boosted its full-year per-share profit forecast.

Nationwide Health Properties jumped 9.7 per cent, the most in the Russell 1000 Index, to $42.974.

Ventas, the second-biggest US health-care real estate investment trust by market value, agreed to buy Nationwide Health for about $5.7 billion. Ventas slid 3.1 per cent to $55.42.

Amazon.com lost 2.2 per cent to $173.29. – (Bloomberg)