Kicking off U.S. corporate-earnings season, aluminum maker Alcoa said late Monday that its fourth-quarter revenue far outpaced analysts' projections. CEO Klaus Kleinfeld predicted that global aluminum demand would increase 7 percent in 2012. Aluminum demand offers clues about broader economic trends because so many industries rely on the metal.
Many analysts had feared weaker corporate profits in the fourth quarter because of Europe's deepening economic troubles and slower growth in the developing world. The solid report from Alcoa seemed to quell those concerns and lifted traders' hopes for strong corporate earnings reports in the coming weeks.
The S&P 500 index rose 11.38 points, or 0.89 percent, to 1,292.08. All 10 of its industry groups rose. Among the biggest gainers were materials companies such as Alcoa, which benefit from rising prices for metals, energy, and other commodities.
Food commodities mostly edged lower, but orange juice futures shot up 11 percent. The Food and Drug Administration said it would increase testing for a fungicide that was found in low levels in orange juice.
Tiffany & Co. plunged 10 percent, the most in the S&P 500 index. The jewelry retailer cut its forecast for full-year profit and said sales grew slowly in the United States and Europe during the holiday season.
The Dow Jones industrial average rose 69.78 points, or 0.56 percent, to 12,462.47. The Nasdaq composite index gained 25.94, or .97 percent, to 2,702.50.
The yoga-apparel chain Lululemon Athletica Inc. surged 12 percent after the company raised its fiscal fourth-quarter earnings and revenue forecast, citing better-than-expected sales of its athletic wear.
WebMD Health Corp. plunged 29 percent. The health-care information website said it has given up looking for a buyer, its CEO has resigned, and it expects earnings to drop this year.
