A trader works on the floor in the New York Stock Exchange, on March 21, 2011.
Credit: Reuters/Brendan McDermidBy Chuck mikolajczakNEW YORK | Friday, April 29, 2011 2: 28 pm EDT
NEW YORK (Reuters) - U.S. stocks got a lift Friday of Caterpillar and other United States industrial shares, putting the Dow in line for its best monthly performance since December.
Manufacturer of heavy machinery Caterpillar Inc. (CAT.)(N) rose after a fivefold increase in reporting quarterly profit and raised its forecast of the year.
"This demonstration all have seen has been driven gains," said Tim Ghriskey, Chief Officer of investment of Solaris Asset Management in Bedford Hills, New York.
"Corporate profits and corporate revenues are much stronger than indicate economic data and therefore continue marching higher here".
The Dow average azul-chip was 4.1 percent during the month, while the S & P 500 rose by 2.8% and the Nasdaq has gained 3.3%. The Nasdaq was also directed at its best month of the year, while the S & P 500 was looking for its best month since February.
Gains in April, however, were limited by the slide of Microsoft Corp (MSFT).(O), the index of Nasdaq more heavily traded securities and manufacturer of BlackBerry Research in Motion (RIM).A) (RIMM).(O).
CATERPILLAR gave the higher momentum for the Dow, advanced 2.8 percent to $115.83, after reaching a record of $116.25 during the session. The S & P.GSPI industrial sector index gained 0.4%. Caterpillar is up more than 20 percent so far this year, along with its industrial partner Boeing Co (BA).(N).
Microsoft fell 4.5% to $25.51 and was the major drag on the Dow azul-chip after it reported a fall in quarterly sales of its software Windows, reflecting a recent drop in demand for personal computers. U.S. listed shares of Research in Motion tumbled 13.8% to $48.77 once the BlackBerry maker cut its forecasts for the first quarter.
The Dow Jones industrial average .DJI won 50.56 points, or 0.40%, to 12,813.87. The standard & poor's 500 index .SPX added 2.76 points, or 0.20 per cent, to 1,363.24. The Nasdaq Composite index.IXIC rose 0.21 only of a point, or 0.01%, to 2,872.74.
Merck & co. Inc. (MRK.)(N) reported higher than expected quarterly earnings, fueled by strong sales of drugs for diabetes, asthma and rheumatoid arthritis, while Chevron Corp (CLC).(N) reported a jump in earnings have increased prices of oil.
Shares of Merck rose 0.4 per cent to $35.92 while Chevron added 0.4% to $109.29. Both populations are components of the Dow.
Solid corporate profits, the liquidity of the Federal Reserve and the prospect of rates of interest for the rest of the year have generated expectations, pushing the Nasdaq to a maximum of 10 years and lift the S & P 500 to more than 8 percent this year. The main stock indices in the U.S. also reached new annual highs during the week.
With may, the market is heading towards a typically weak period. It may has been the fourth weakest month for the Dow, with an average gain of 0.2 per cent since 1950, according to Stock Trader's Almanac. Usually it also marks the beginning of the worst six months of the year for manufacturers.
The dollar was held close to a minimum of three years against a basket of currencies.
(Reporting by Chuck Mikolajczak;) (Edited by Jan Pascual)
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