By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rallied Wednesday, and
three days of gains sent the benchmark S&P 500 into positive
territory for the year.
Markets got a boost from better-than-expected economic growth
data in China and an upbeat industrial production report in the
U.S., while positive earnings from Yahoo! Inc. (YHOO) and Intel
Corp. (INTC) lifted tech stocks.
The S&P 500 (SPX) ended the day 19.33 points, or 1.1%,
higher at 1,862.31. The Dow Jones Industrial Average (DJI) jumped
162.29 points, or 1%, to 16,424.85.
The Nasdaq Composite (RIXF) added 52.06 points, or 1.3%, to
4,086.23, recouping some of the heavy losses from last week.
Read a recap of the day in MarketWatch's live stock market
blog..
Federal Reserve Chairwoman Janet Yellen, in a speech and a
Q&A session, reiterated that the decision on interest rates
would be based on employment and inflation, further boosting
sentiment. The Fed's summary of economic conditions, known as the
Beige Book, said the U.S. economy picked up in most of the country
as the weather improved.
In economic news, data released by the Federal Reserve on
Wednesday show industrial production grew more than forecast in
March, thanks to mining and utility output.
Data on housing was not as upbeat. The U.S. Commerce
Department's report on housing starts in March came in below
expectations even though construction on new U.S. homes in March
hit its fastest pace in three months.
Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital,
said markets reacted to the better-than-expected headline number on
the industrial production report, but warned the numbers are still
not great.
"It is still a flat economy and improving slowly. Housing starts
data were weak and at this point, still difficult to say if it's
weather related or that we hit a soft patch in the housing market,"
Forrest said.
Yahoo's best day in nine months
In earnings news, Yahoo Inc. (YHOO) jumped 6.3%, its best day in
nine months, after quarterly earnings released late Tuesday beat
estimates. The Internet company's first-quarter adjusted earnings
were 38 cents a share.
Bank of America Corp. (BAC) reported a first-quarter loss of 5
cents a share, sending shares 1.6% lower. The bank recorded $6
billion in litigation expenses during the period. Read also: Live
Blog: Bank of America Q1 earnings call.
Post Holdings Inc. (POST) shares rallied 5.7% following a report
in The Wall Street Journal that it has beat out several other
competitors, including Tyson Foods Inc. (TSN), to position itself
to buy Michael Foods Group for about $2.5 billion.
Interactive Brokers Group Inc. (IBKR) shares jumped 12% after
the firm said its profit surged, due largely to increased trading
activity in its electronic brokerage unit.
St. Jude Medical Inc. (STJ) shares dropped 1.9% even as the
company narrowly beat analysts estimates. The company said its
first-quarter earnings rose 12% and raised it earnings per share
estimate for the year. Also read: St. Jude gets the cold shoulder
from investors after meager earnings beat.
Google, IBM, AmEx disappoint after hours
After the closing bell, several companies reported disappointing
results.
Google Inc. shares slid after hours, erasing all of Wednesday's
gains. The internet group missed Wall Street's earnings
expectations for the first-quarter results. Class A shares in the
company closed up 2.8% to $563.90. Both Class A shares (GOOGL) and
Class C shares (GOOG) fell more than 5% in after-hours trade. Also
read: Google first-quarter earnings call: Live blog
IBM Corp. (IBM) shares sid 3.8% after the company's revenue fell
short of Wall Street expectations.
Shares in American Express Co (AXP) fell 1.5% as revenue
disappointed investors.
In overseas markets, Asian and European stocks closed higher.
Gold and oil prices ticked up.
More must-reads from MarketWatch:
Should you sell in April and go away?
Be wary when you hear 'This is the big stock crash'
Asia markets live blog: China GDP in focus
Subscribe to WSJ: http://online.wsj.com?mod=djnwires