Oracle lifts tech sector as Wall Street advances

Dow Jones: 12,220.59 (+50.03) SP 500: 1,313.80 (+4.14) Nasdaq: 2,743.06 (+6.64)

US STOCKS advanced yesterday, giving the Standard and Poor’s 500 Index its biggest weekly rally since February, after Oracle’s profit forecast beat analyst estimates and the rate of economic growth was revised higher.

“Corporations are making money amid this pace of economic growth,” said Kevin Caron, a market strategist in Florham Park, New Jersey, at Stifel Nicolaus,which has about $90 billion in client assets.

“We saw a solid GDP number. The fact that Oracle reported a decent forecast would be consistent with that trend. As long as the data is supporting the recovery, the S&P 500 can get to $100 a share of earnings over the next year and a half. That means the index rising to 1,500,” he said.

US stocks rose, recouping losses that followed Japan’s March 11th earthquake, as corporate profits beat estimates and a government report showed a decline in jobless claims.

The S&P 500 has advanced 4.5 per cent in 2011, extending last year’s 13 per cent rally, amid government stimulus measures and an eighth straight quarter of higher than estimated earnings.

Oracle climbed 1.6 per cent to $32.64 after the company late yesterday forecast profit excluding acquisition costs and some other expenses of 69 cents to 73 cents this quarter, beating the average analyst estimate of 66 cents.

Accenture added 4.5 per cent to $54.29. Third-quarter net revenue, or sales before reimbursements, will grow to a range of $6.3 billion to $6.5 billion, the Dublin-based company said.

Bristol-Myers Squibb rose 3.3 per cent to $27.29. The pharmaceutical company won US approval for ipilimumab, the first drug in a new family of medicines to treat advanced melanoma, the most deadly form of skin cancer.

Smithfield Foods gained 2 per cent to $24.44. The world’s biggest pork processor said it sees no “backup” in Japanese orders and that the nation is shifting to fresh pork, according to a Barclays presentation.

Research In Motion slumped 11 per cent to $56.89 after the maker of the BlackBerry smartphone forecast first-quarter revenue and profit that trailed estimates. Earnings will be $1.47 to $1.55 a share as the company spends more on research, RIM said late yesterday. – (Bloomberg)