
Intel Corp. gained 2 percent, spurring a rally in technology shares, after the world’s largest chipmaker added $10 billion to its buyback plan. Smurfit-Stone Container Corp. jumped 27 percent as Rock-Tenn Co. agreed to buy the packaging company for $3.5 billion. Warren Buffett’s Berkshire Hathaway Inc. advanced 3.2 percent, the most since June, amid speculation the company may start paying a dividend this year.
The Standard & Poor’s 500 Index climbed 0.6 percent to 1,290.84 as of 4 p.m. in New York, a second straight advance. The Dow rose 108.68 points, or 0.9 percent, to 11,980.52, extending gains after an eight-week rally.
“Corporate actions, such as buybacks, dividends and M&A, make valuations attractive,” said Peter Jankovskis, who helps manage more than $2.6 billion at Oakbrook Investments in Lisle, Illinois. “That’s an indication of management’s confidence in the future. Earnings at U.S. companies have been strong. That’s positive for the equity market.”
The S&P 500 rebounded today following its first weekly drop since November. The benchmark gauge for American equities rose as much as 91 percent from a 12-year low in March 2009 amid government stimulus measures and higher-than-estimated corporate profits. The benchmark gauge for U.S. equities is currently trading for 15.7 times its companies’ reported earnings, compared with a 10-year average of 18.23. more ...
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