NEW YORK (Reuters) – U.S. stocks rose on Tuesday after strong Chinese trade data eased concerns over a slowdown in the world’s second-largest economy and pointed to healthy global demand.
The utilities sector led gainers on the S&P 500 as investors took more defensive positions on the view that the recovery was not accelerating as quickly.
China posted an $11.4 billion trade surplus in April, nearly four times greater than expected, after exports hit a record on healthy demand and imports rose less than forecast.
«China’s export numbers were very good,» said Burt White, chief investment officer at LPL Financial in Boston. «That gave a shot in the arm to this market.»
He said the market was relocating its growth expectations and a reallocation of assets is in the works.
«We’re in a new position in this business cycle,» White said, pointing to a shift «out of oil, basic materials and technology, and more toward companies with stable growth; sectors like utilities …»
The utilities sector (.GSPU) rose 1 percent and was the best performer in the S&P 500.
The Dow Jones industrial average (.DJI) gained 63.91 points, or 0.50 percent, to 12,748.59. The Standard & Poor’s 500 Index (.SPX) added 8.61 points, or 0.64 percent, to 1,354.90. The Nasdaq Composite Index (.IXIC) rose 18.40 points, or 0.65 percent, to 2,861.65.
Microsoft Corp (MSFT.O) fell 0.6 percent to $25.66 after its offer to buy Internet telephone network Skype for $8.5 billion. EBay Inc (EBAY.O), which owns part of Skype, rose 2.7 percent to $34.
Dean Foods Co (DF.N) jumped 14.8 percent to $12.61 after posting higher-than-expected quarterly profit.
As earnings season winds down, investors also awaited results from Dow component Walt Disney Co (DIS.N).