U.S. Stocks Rally On Housing Data, Earnings

U.S. stocks rose Wednesday, lifted by financial and technology shares carrying the S&P 500 to its fifth advance in a row. Most sectors finished with gains, with utilities the only industry group to post a marked decline. Strong earnings by a new string of companies propelled stocks higher with positive economic data from China and at home playing a less significant role.

The U.S. Mortgage Bankers Association provided bullish news for stocks, reporting a 2% seasonally adjusted rise in mortgage applications during the week ended May 3 over the prior week, climbing to a three-year high. The industry group also said its index for mortgage refinancings rose 8% last week, returning to its best levels since December.

China earlier, Wednesday, posted a larger-than-expected trade surplus of $18.16 bln, topping consensus opinion in a Dow Jones survey by around $2.61 bln. and reversing the $884 mln decline reported in March. Exports grew 14.7% over year-ago levels while imports rose 16.8%, the country's Customs agency said.

Some economist were skeptical about the latest trade figures, suggesting a one-month spike for invoices could have produced the surprising large reading. We believe the strong trade growth is not indicative of a growth recovery, Nomura International economist Zhang Zhiwei wrote in a new research note obtained by Agence France-Presse.

Commodities were mostly higher, including a big jump for metals supported by the Chinese trade data. June gold rallied, climbing $24.90 to settle at $1,473.70 per ounce while July silver rose 12 cents to $23.93 per ounce. July copper jumped 7 cents, or more than 2%, to finish at $3.37 per pound. Crude oil for June delivery rose xx cents to settle at $9x.xx per barrel while June natural gas added cents to finish at $3.xx per 1 mln BTU.

Oil futures climbed even as U.S. inventories reached 395.5 million barrels, according to the Energy Information Agency. That is the highest total weekly supply level since at least 1982. Overall, crude supplies increased by 200,000 barrels during the week ended May 3, the EIA said. Analysts polled by Platts were looking for a 1.9 mln-barrel build.

Here's Where The U.S. Markets Stood At Day's End

• Dow Jones Industrials Aveage up 48.92 (+0.32%) to 15,105.12
• S&P 500 up 6.73 (+0.41%) to 1,632.69
• Nasdaq Composite up 16.64 (+0.49%) to 3,413.27

• Hang Seng Index up 0.85%
• Shanghai China Composite Index up 0.47%
• FTSE 100 Index up 0.39%

• (+) CPSI, More than triples quarterly dividend, with plans to pay $0.10 per share on June 3 to shareholers of record on May 24. Also reports Q2 profit of $0.21 per share, up from $0.13 per share last year. Revenue climbs 36% to $25.8 mln, topping the analyst consensus by $6.77 mln.
• (+) ALXA, Partners with Teva Pharmaceuticals (TEVA) to market Adasuve inhalation powder to treat acute agitation associated with schizophrenia and bipolar disorder in adults. ALXA will be responsible for manufacturing Adasuve with TEVA taking on all commercial and clinical duties for the drug. TEVA is up 0.5%.
• (+) LEDR, Agrees to a $355-mln buyout by Trulia Inc (TRLA), creating a combined company with around 46,000 premium subscribers. LEDR shareholders will receive $6.00 in cash and 0.1553 of a TRLA share for each share they now own, inferring a per-share price of around of $11.33. TRLA shares were down about 8% in late trade.
• (+) TRMD, Records first operating profit since Q2 of 2011, posting earnings before interest, taxes, depreciation and amortization of $36 million during its Q1 ended March 31. Significantly narrows GAAP net loss.

• (-) FIO, CEO David Flynn quits, along with the company's co-founder and Chief Marketing Officer Rick White, to pursue early-stage investing activities. Flynn and White will remain FIO board members.
• (-) JAZZ, Warns the company may face temporary product shortages of Erwinaze due to uncertainty over a recent product batch, overshadowing strong Q1 EPS and revenue growth both topping expectations. Trims lower range of its FY13 global sales forecast for the leukemia drug by $5 mln, with sales this year now projected at $150 mln to $175 mln.
• (-) BTH, Prices $50-mln offering of 6.00% senior notes due 2017. Proceeds - together with cash on hand - will be used to repay 5.5% senior notes maturing on Nov. 1. Also reports adjusted Q1 net earnings of $0.16 per share, down from a $0.53 profit last year. Revenue declines 14% to $233.1 mln. Lowers FY13 EPS guidance due to reduced sales expectations.
• (-) REN, Announces plans for an offering of 13.25 mln shares of its common stock. Certain stockholders will also offer an additional 3 mln shares in the offering.