May 8 (Bloomberg) -- U.S. stocks rose, rebounding from the market's biggest drop in a month, as mining shares gained on higher gold prices and sales topped estimates at retailers and media companies.
Freeport-McMoRan Copper & Gold Inc. led commodity producers to the biggest advance in the Standard & Poor's 500 Index. Wal- Mart Stores Inc. jumped after shoppers seeking discounted clothing and food boosted sales. News Corp., the owner of Fox television, climbed on revenue that was lifted by advertisements for ``American Idol'' and the Super Bowl. Gains were limited as Fitch Ratings downgraded CIT Group Inc. debt, spurring a drop in financials.
The S&P 500 added 3.58, or 0.3 percent, to 1,396.15 at 11:21 a.m. in New York. The Dow Jones Industrial Average gained 37.37, or 0.3 percent, to 12,851.72. The Nasdaq Composite Index increased 12.51, or 0.5 percent, to 2,451. About the same number of stocks rose as fell on the New York Stock Exchange.
Consumers ``are carefully scrutinizing every single expense, and that's working to the benefit of the discounters,'' said David Dietze, president of Point View Financial Services in Summit, New Jersey, who recommended Wal-Mart shares in a December interview on Bloomberg Television. Point View manages $140 million.
Consumer shares in the S&P 500 outperformed the broader index this year amid speculation that the economic slump spurred by at least $312 billion of mortgage-related losses is limited to the financial industry. Companies in the S&P 500 Consumer Discretionary Index that reported first-quarter earnings so far topped analysts' estimates by 11.5 percent, the most among 10 industries, according to data compiled by Bloomberg.
Jobless Claims
Shares also gained after the government reported initial jobless claims that dropped last week more than economists had forecast. The number of Americans filing applications for the first time fell to 365,000 from a revised 383,000 the prior week, the Labor Department said. The level of continuing claims declined by 10,000 to 3.02 million for the week ended April 26.
Stocks dropped in Asia and most shares fell in Europe.
Freeport rallied 4 percent to $119.01. Gold rose in London after StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, reported a second consecutive gain in investors' holdings. Platinum advanced for a fifth day.
Wal-Mart climbed 61 cents to $57.44. Sales at stores open at least a year climbed 3.2 percent, beating the company's forecast for a gain of as much as 3 percent. Chief Executive Officer H. Lee Scott slashed prices on drugs and other products by as much as 30 percent in January to promote Wal-Mart as the lowest-cost destination for Americans grappling with rising food and fuel costs.
News Corp.
News Corp. rose 59 cents to $19.01. The media company controlled by Rupert Murdoch posted third-quarter revenue that topped analysts' estimates after. News Corp. said profit tripled from a year earlier, boosted by a gain from the sale of its stake in DirecTV Group Inc.
CIT Group, the commercial lender trying to escape a cash squeeze, dropped 1.4 percent to $12.32 after Fitch said it faces ``liquidity challenges.'' CIT helped send financial shares in the S&P 500 down 1.1 percent, the biggest decline among 10 industries. Freddie Mac and Fannie Mae, the biggest U.S. mortgage-finance companies, dropped 7 percent and 5.3 percent, respectively. Wachovia Corp., the fourth-largest U.S. bank, fell $1.31 to $27.40.
Crocs Inc., the maker of perforated plastic clogs, surged $1.88, or 19 percent, to $11.84. The company said full-year profit, excluding costs to close a factory, will be $1.70 to $1.80 a share. Analysts estimated $1.69, according to the average of five projections compiled by Bloomberg.
Manitowoc Co. rose 4.5 percent to $40.14 for the biggest gain in the S&P 500. An offer by the maker of food and construction equipment to buy U.K. catering-gear maker Enodis Plc was trumped by a higher offer from Illinois Tool Works Inc.
9.6 Percent Rebound
The S&P 500 has clawed back 9.6 percent from a 19-month low on March 10, helped by earnings from Google Inc., Intel Corp., Boeing Co., American Express Co. and others. As of yesterday, 61.7 percent of companies in the index reported results that topped estimates, according to Bloomberg data.
Barr Pharmaceuticals Inc. tumbled 23 percent to $38.28, the biggest drop in the S&P 500. The maker of generic drugs and the Plan B emergency contraceptive reported a first-quarter profit that missed analysts' estimates and lowered its estimate of full year earnings.
Dynegy, Hansen
Dynegy Inc. fell 33 cents to $8.68. The owner of power plants in 12 U.S. states reported a first-quarter net loss of $152 million as the value of contracts used to lock in prices declined.
Hansen Natural Corp. dropped $5.07, or 14 percent, to $30.53 after the maker of Monster energy drinks reported first- quarter profit of 29 cents a share, missing the average analyst estimate of 37 cents in a Bloomberg survey.
Financial shares led declines yesterday on concern new disclosure requirements for investment banks will limit their profits. Merrill Lynch & Co. and Lehman Brothers Holdings Inc. sent brokerages and lenders to their biggest tumble since March after the Securities and Exchange Commission said it will require Wall Street firms to disclose capital and liquidity levels.
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