US market rises on earnings surprises, data

NEW YORK -- Stocks rose on Tuesday after data showed a gain in New York state manufacturing and companies, including several banks, posted profits above analysts' estimates, lifting sentiment after a week of big earnings misses.

Bank shares rose after Regions Financial Corp (RF.N), M&T Bank Corp (MTB.N) and U.S. Bancorp (USB.N) reported higher-than-expected earnings results.

One major exception among financial shares was State Street Corp (STT.N), which fell more than 8 percent to $70.45 as executives discussed quarterly results on a conference call.

Johnson & Johnson (JNJ.N), the diversified health-care company, reported profit that topped analysts' forecasts, breaking a string of disappointing results, including an unexpected drop in profit from General Electric Co (GE.N).

Economic data helped soothe worries about growth and inflation.

The New York Federal Reserve Bank's Empire State manufacturing index showed some stabilization in April after tumbling to a record low in March, according to an index compiled by the New York Fed.

The Labor Department's Producer Price Index, excluding volatile food and energy, rose in line with economists' expectations.

"Empire was better than expected and PPI shows headline inflation isn't passing through to core prices. J&J had a good number," said Jim Awad, chairman of W.P. Stewart Asset Management in New York. "Maybe business is not as bad as GE indicated.

The Dow Jones industrial average (.DJI) was up 28.90 points, or 0.23 percent, at 12,330.96. The Standard & Poor's 500 Index (.SPX) was up 2.67 points, or 0.20 percent, at 1,330.99. The Nasdaq Composite Index (.IXIC) was up 4.43 points, or 0.19 percent, at 2,280.25.

Shares of Exxon Mobil Corp (XOM.N) were the biggest-weighted gainer on the S&P 500, up 0.9 percent to $90.47 as crude oil jumped nearly $2 to reach a record high of $113.69 a barrel.

Regions' shares were up 6.7 percent at $19.18 and M&T stock gained 4.8 percent at $84.60.

Johnson & Johnson shares dipped 0.4 percent to $65.50 after climbing 1 percent before the open.

In deal news, Delta Air Lines Inc (DAL.N) will buy Northwest Airlines Corp (NWA.N) in an all-share deal announced on Monday. The new company, which will be the world's largest airline, aims to consolidate to cope with soaring fuel costs.

Northwest shares were up down 5.4 percent to $10.66 and Delta shares were down 10.3 percent to $9.41.

(Agencies)