US stocks closed higher Wednesday as the Dow climbed past 13,200 for the first time after a strong reading on US factory orders bolstered investor optimism about the economy. The Commerce Department said orders to US factories rose 3.1% in March amid strong demand for commercial aircraft and a sharp rise in an indicator of how much companies are investing in their business.
The Dow finished up 75.74 or 0.58% at 13,211.88, while the S&P 500 closed up 9.62 or 0.65% at 1,495.92. The Nasdaq ended 26.31 or 1.04% higher at 2,557.84.
On Tuesday, a takeover bid launched by News Corp for Wall Street Journal publisher Dow Jones & Co. helped lift investor sentiment and send stocks higher.
While it remains unclear whether the family that controls Dow Jones will agree to a sale, Dow Jones fell 0.4% Wednesday after jumping 55% Tuesday. News Corp shares advanced 1.9%.
In other corporate news, Time Warner said its first quarter earnings fell 18%. The media conglomerate's results topped Wall Street's expectations as growth in the company's cable business helped boost revenue. Time Warner rose 1.7%.
Cablevision Systems jumped 9.9% after the cable TV provider said it had struck a US$10.3 billion deal to be taken by its controlling shareholders, the Dolan family. The family had tried three other times to take the company private.
Citigroup rose 0.2% after saying it will buy financial services outsourcing company Bisys Group for US$1.45 billion in cash. Bisys shares added 2.1%.
MasterCard reported higher quarterly sales and earnings that topped forecasts, sending shares over 11% higher.
Petroleum drilling rig operator Transocean also reported higher quarterly sales and earnings that beat estimates. Its shares gained 3.4%.
Nortel Networks jumped over 9% after the telecom gear maker said late Tuesday that it expects first quarter revenue in a range that could top analysts' forecasts.
Elsewhere, Yum! Brands reported a 14% increase in first quarter earnings as its international fast-food chains KFC, Taco Bell and Pizza Hut performed well. Its shares rose 6.1%.
Shares in retailer Gap rose 3.6% after The New York Post reported that the company is considering potentially sizeable layoffs to help reduce expenses and also to eliminate the bureaucracy that has stifled creativity in recent years.
On the downside, Blockbuster fell 13% after the company said its first quarter loss widened amid a weak market for movie rentals and heavy spending on its online rental program.
NYMEX light crude oil for June delivery fell US 72c or 1.12% to US$63.68 a barrel after the government said supplies of gasoline fell and crude oil inventories climbed.
COMEX gold for June delivery fell US$2.20 or 0.32% to US$675.10 an ounce.
In Europe, Britain’s key share index registered a handsome gain on Wednesday on the back of solid earnings results. An undercurrent of merger and acquisition hopes also gave the share market a boost.
South Africa-focused miner Lonmin climbed 7.8% to an all-time high after maintaining its forecast for full-year platinum sales of 980,000 to 1 million ounces, easing concerns the company might cut its projections.
In the same sector, BHP Billiton and Rio Tinto added 2.6% and 1.5% respectively.
Meanwhile, Royal Bank of Scotland jumped 3.6% as dealers cited an improved chance of the bank winning the takeover battle for Dutch rival ABN AMRO.
Morrison Supermarkets climbed 2.3% as traders cited media reports of possible private equity interest in Britain's fourth-largest grocer.
Satellite broadcaster BskyB surged 5.5%, hitting a near three-year high after posting a 10% increase in nine-month revenues and saying it had added 51,000 net subscribers in the third quarter.
In contrast, educational publisher Pearson gave up 3.4%, affected by a report from a broker which reinitiated coverage with an “underperform” rating.
The FTSE 100 closed up 64.9 or 1% at 6,484.5.
On the other side of the channel, share prices in Paris closed higher on a continuing flow of merger and acquisition developments. In Frankfurt, shares closed up as early gains accelerated in the afternoon due to a higher opening on Wall Street.
The News Corp bid managed to boost media shares in France, with Lagardere SCA leading blue chip gainers with a rise of 2.5%.
Continental was the top performer in Germany, up 3% after the tyre and auto parts specialist released first quarter figures that showed a strong growth in EBIT and solid growth in other key areas.
The French CAC-40 finished up 30.09 or 0.50% at 5,990.13, while the German DAX-30 was 47.06 or 0.64% higher at 7,455.93.
In Asia, Japan’s Nikkei share average rose amid light volumes, with many participants away for Japan's Golden Week spring holidays. Japanese markets were closed on Monday for a national holiday and will also be closed on Thursday and Friday.
Among the movers, shares of Daikin jumped 5.5%. The company's operating profit will likely jump 25% to a record high this business year due to strong demand for air conditioners in Europe and Asia, a newspaper report said.
The Nikkei finished the day119.94 or 0.69% higher at 17,394.92.
Hong Kong share prices closed higher led by index heavyweight HSBC following news that a unit of Dubai International Capital had made a substantial investment in the global banking giant. HSBC closed up 0.8%.
The Hang Seng closed up 69.51 or 0.34% at 20,388.49.
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