U.S. stocks rise as jobs report fuels optimism on stimulus pace

Gold Prices

Newmont Mining Corp. climbed 2.6% to $23.80 as gold futures jumped on speculation the Fed will slow the pace of stimulus reductions.

Intuitive Surgical Inc. advanced 8.6% to $420.15 for the biggest increase in the S&P 500. The company’s new robotic surgery system has an 80% chance of being approved by the end of the year, a SunTrust Robinson analyst said in a note.

Intercept Pharmaceuticals Inc. rallied 62% to $445.83 as a Bank of America analyst raised the biotech firm’s price target to $872 from $81. Intercept soared 281% yesterday after a trial of its liver disease drug worked well enough for the testing to be stopped.

Alcoa dropped 5.4%, the most in the S&P 500, to $10.11 as the aluminum producer reported fourth-quarter profit that missed analysts’ estimates because of a glut of rolled metal used in the aerospace industry.

Sears, Chevron

Sears Holdings tumbled 14% to $36.71. Chief Executive Officer Edward Lampert, the company’s largest shareholder, has been shedding assets, selling locations and spinning off the smaller-format stores and part of the Canadian business amid a continuing sales decline.

Chevron slid 1.9% to $121.01 for the biggest drop in the Dow. The world’s second-largest energy company by market value will report a drop in fourth-quarter profit after oil and natural gas production declined amid slumping prices. Net income during the period was “comparable” to the $5 billion earned during the third quarter, the company said in a statement yesterday. That compares with a $7.25 billion profit for the final three months of 2012.

Five Below Inc. sank 7.2% to $40.46. The chain that sells teens discounted items said fourth-quarter earnings will probably not exceed 46 cents a share, down from an earlier range of 49 cents to 51 cents forecast in December, after holiday sales fell.


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