Traders-Blog.com

Without a doubt, it is the blue chip’s biggest day since April 2, 2003. Amazingly, the Dow closed up 206.24 points, or 2.1 percent, at 10,218.60. Besides, the Nasdaq recorded its biggest one-day point gain since March 25, 2004 by surging 48.65 points, to close at 1,962.41. The S&P closed at 1,159.95, after climbing 22.45 points, or 2 percent to close at 1,159.95.

Among companies that helped to the rally of the market were Motorola Inc., and United Parcel Service Inc. Besides, solid economic news increased confidence in investors. According to the Federal Reserve Bank in Philadelphia, growth accelerated in the manufacturing sector during the month of April. The Philly Fed index rose to 25.3 in April from 11.4 in March, revealing a strongest reading in four months.

Eartlink Inc. (ELNK), The Atlanta-based Internet service provider, reported a first-quarter profit of $33.3 million, or 22 cents a share. This result shows an increase from a loss of $11.8 million, or 7 cents a share since last year. Besides, net earnings before facility exit costs were $34 million, or 23 cents per share, compared to $18.4 million, or 11 cents a share a year ago.

Motorola Inc. posted first-quarter net income of 28 cents a share on sales of $8.2 billion. Shares of Motorola rose 6.7 percent. Also, Ebay Inc. said its first quarter profit rose 28 percent on sales that topped $1 billion for the first time. The internet company saw more than $10 billion worth of goods traded on its Web site.

Besides, Altria Group Inc., parent of Philip Morris, showed an increase of $2.56, or 4.1 percent, to $65.31. The company is planning to close a deal with the Chinese Government in order to allow Marlboro cigarettes to be made and sold in China. However, China’s tobacco regulator reported that it is not aware yet of the plans by Philip Morris.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter