In the U.S., the Institute for Supply Management said its manufacturing index soared to 60.8 in January -- the highest level since May 2004. Economists had called for a reading of just 58. However, the prices paid index leaped to 81.5, up from 72.5 in December, compared with estimates for just 73.5.
The euro zone's manufacturing index climbed in January to its highest level since 1997, but consumer prices jumped 2.4%. British inflation soared 3.7%, doubling the Bank of England's targets.
U.S. markets continue to scale back their fears about the situation in Egypt, which has been paralyzed by eight days of protests demanding longtime President Hosni Mubarak resign. Just as U.S. markets closed, Mubarak addressed the world, saying he will not run for president again and will spend his remaining months focusing on a smooth transition of power.
The situation remains volatile, but has calmed considerably from last week. So far the unrest hasn't spilled over into critical oil-producing nations, namely Saudi Arabia. Concerns the Suez Canal would shut down, causing oil to spike above $100 a barrel, have not been realized either. In the clearest sign of the receding fear, crude oil gave back a chunk of the gains from its two-day surge, sinking $1.42 a barrel, or 1.54%, to $90.77.
Meanwhile, Wall Street cheered stronger-than-expected results from a number of key companies, headlined by economic bellwether UPS. The shipping giant revealed a 48% jump in fourth-quarter profits, topped estimates with non-GAAP EPS of $1.11 a share and predicted 2011 EPS will grow by 16% to 22% to a record.
Pfizer was the best performer on the Dow, leaping 5.5% after beating the Street by a penny and posting revenue of $17.6 billion that solidly surpassed consensus calls. Pfizer also announced plans to buy back another $5 billion of its stock, but cut its 2012 sales view.
Basic materials stocks, one of the most economically-sensitive sectors, were the biggest winners, jumping more than 2.6%. Individual stocks such as U.S. Steel (X: 58.18, 0.00, 0.00%) and Freeport McMoRan (FCX: 56.77, 0.00, 0.00%) saw even heavier buying.
Wall Street also benefited from a weaker dollar, which helped drive up the price of commodities like copper and multinationals. Helped by the increased risk appetite, the euro soared 1.06% to $1.3832 -- its highest level since November 11. Gold rose $5.80 a troy ounce, or 0.43%, to $1,339.60.
Airline stocks like Delta Air Lines (DAL: 11.39, 0.00, 0.00%) and JetBlue (JBLU: 5.80, 0.00, 0.00%) were mixed as the travel industry braces for the aftermath of the massive snowstorm hitting the Midwest and other parts of the U.S. According to reports, more than 4,400 flights across the U.S. have been grounded due to the storm.
Elsewhere in the transportation world, major auto makers released mostly upbeat monthly sales figures. General Motors (GM: 36.54, 0.00, 0.00%) said U.S. sales of its four brands jumped 23% in January, while Ford (F: 15.73, 0.00, 0.00%) posted a 9.2% increase in sales from the year before.
The Commerce Department said U.S. construction spending fell 2.5% in December to $787.9 billion -- the lowest level since July 2000. Economists had called for a slight increase.
Corporate Movers
Archer Daniels Midland (AMD: 8.39, 0.00, 0.00%) was among the biggest earnings winners, rallying 5% after revealing a non-GAAP profit of $1.06 that blew away Wall Street's expectations for 78 cents.
BP (BP: 46.05, 0.00, 0.00%) posted a 30% jump in fourth-quarter profits and unveiled plans to resume dividend payouts and sell off a pair of its U.S. refineries. However, BP's adjusted profit of $4.36 billion trailed estimates.
Orexigen Therapeutics (OREX: 3.60, 0.00, 0.00%) plunged more than 70% after the Food and Drug Administration rejected its weight-loss drug due to heart risks. The drug, Contrave, could have been the first new diet pill in a decade.
Lexmark (LXK: 38.81, 0.00, 0.00%) surged 13% as its fourth-quarter adjusted-profit of $1.29 widely topped estimates for $1.12. The printer company posted a 3% rise in sales to $1.1 billion. Lexmark also projected first-quarter profits that would beat consensus calls.
Novellus (NVLS: 38.80, 0.00, 0.00%) soared 5% to 52-week highs a day after the chip-gear maker beat the Street with a non-GAAP profit of $1.03 and forecasted stronger-than-expected first-quarter sales of up to $425 million. Analysts had been calling for sales of just $381.9 million.
Biogen (BIIB: 65.92, 0.00, 0.00%) posted a fourth-quarter profit of 99 cents a share and an adjusted-profit of $1.42 a share. The biotech company said it sees 2011 non-GAAP EPS above $5.70.
Tupperware Brands (TUP: 53.77, 0.00, 0.00%) said it earned $1.38 a share on a non-GAAP basis last quarter, exceeding forecasts for $1.28 and sparking a 15% surge in its stock. The company’s sales rose 5% to $655 million, topping the Street’s view of $642.8 million. Tupperware also said it sees stronger-than-expected EPS for the current quarter.
McGraw-Hill (MHP: 36.56, 0.00, 0.00%) slid 5% after it disclosed an 8% slide in fourth-quarter profits. The company posted non-GAAP EPS of 55 cents that topped estimates by 2 pennies. Revenue rose 4% to $1.52 billion, meeting estimates.
Global Markets
The U.K.'s FTSE 100 jumped 1.62% to 5957.82, Germany's DAX climbed 1.51% to 7184.27 and France's CAC 40 advanced 1.68% to 4072.62.
In Asia, Japan's Nikkei 225 gained 0.36% to 10274.50, Hong Kong's Hang Seng inched up 0.15% to 23482.90 and China's Shanghai Composite gained 0.30% to 2798.96. For the latest updates PRESS CTR + D or visit Stock Market news Today
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