U.S. stocks jump on earnings optimism; Dow Jones up 0.53%

Forex Pros – U.S. stocks were broadly higher after the open on Tuesday, as a string of upbeat corporate earnings results boosted sentiment and as markets shrugged off concerns over political turmoil in the Middle East.

During early U.S. trade, the Dow Jones Industrial Average gained 0.53%, the S&P 500 index jumped 0.82%, while the Nasdaq Composite index surged 1.03%.

Shares in pharmaceutical giant Pfizer added 3.02% after it reported fourth quarter profit jumped by 73% to USD2.89 billion, compared to USD767 million a year earlier. The company said that revenue in the quarter rose to USD17.6 billion, beating market expectations for revenue of USD16.99 billion.

The world's largest corn processor Archer Daniels Midland saw shares rally 7.11% after it said that fiscal second quarter earnings jumped by 30% to USD729 million. Sales in the quarter rose by 24% to USD20.93 billion, as rising grain prices and robust global demand bolstered results.

Meanwhile, printer manufacturer Lexmark saw shares jump 9.15% after it posted a 31% increase in fourth quarter profit, rising to USD87.6 million, helped by strong sales of laser printers.  

Elsewhere, shares in the world's largest Chinese search engine Baidu leaped 6.78% after it reported fourth quarter revenue soared by 94% to USD370.9 million. The internet search giant said that it increased its market share in China after rival Google curtailed its operations following a fallout with Beijing over censorship.

Also Tuesday, shares in the world's largest maker of multiple sclerosis drugs Biogen Idec climbed 3.04% after it said that revenue in the fourth quarter rose by 8% to USD1.22 billion. The biotechnology firm lifted its full-year earnings outlook.

However, shares in Orexigen Therapeutics plunged 71.35% after the U.S. Food and Drug Administration said it would not consider approving the company's new diet drug unless an additional study was conducted.

Across the Atlantic, European stock markets posted sharp gains. The EURO STOXX 50 surged 1.37%, France's CAC 40 jumped 1.21%, Germany's DAX gained 1.15%, while Britain's FTSE 100 rallied 1.36%.

Later in the day, the Institute of Supply Management was to publish data on U.S. manufacturing growth.

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