US STOCKS-Markets gain as Spain plan lifts multinationals

* Spain sets austerity measures, lifting multinationals

* Fidelity National Information jumps on deal report

* Dow up 0.8 pct, S&P up 0.7 pct, Nasdaq up 1.2 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

By Ryan Vlastelica

NEW YORK, May 12 (BestGrowthStock) – Technology and industrial
shares boosted Wall Street on Wednesday as Spain unveiled an
austerity plan that further eased jitters over euro-zone debt
woes.

Investors have been worried that a sovereign debt crisis in
Greece could spill over to other nations with high debt loads,
including Spain.

Spain unveiled a plan on Wednesday to slash civil service
pay and cut public sector jobs, days after a 750 billion euro
($1 trillion) bailout package to stem the debt crisis, cheering
investors. For details, see [ID:nLDE64B0SK]

“Things in Europe look a lot better than they did two weeks
ago, and that bodes well for global trade and multinational
sectors like tech and industrials,” said Douglas Peta, an
independent market strategist in New York.

The Dow Jones industrial average (.DJI: ) jumped 84.79
points, or 0.79 percent, at 10,833.05. The Standard & Poor’s
500 Index (.SPX: ) rose 8.33 points, or 0.72 percent, at
1,164.12. The Nasdaq Composite Index (.IXIC: ) was up 28.91
points, or 1.22 percent, at 2,404.22.

International Business Machines Corp (IBM.N: ) was the top
boost on the Dow, adding 2.5 percent to $130.11, while Intel
Corp (INTC.O: ) was the biggest percentage gainer on the Dow and
the most active stock on the Nasdaq, up 2.3 percent at $22.79.

Heavy equipment maker Caterpillar Inc (CAT.N: ) jumped 1.7
percent to $67.24.

Also lifting tech shares, Fidelity National Information
Services Inc (FIS.N: ) jumped 3.7 percent to $29.89 after a
source said a private equity group was negotiating an
acquisition potentially worth about $15 billion.
[ID:nN11176888]

Dow component Walt Disney Co (DIS.N: ) fell 0.3 percent to
$35.66 a day after second-quarter earnings beat expectations
but analysts said results at its television networks division
were disappointing. [ID:nN11225225]

Also on the earnings front, Macy’s Inc (M.N: ) swung to a
first-quarter profit (Read more your timing to make a profit.) and affirmed its outlook, but said it was
“premature” to raise the forecast again for now, “given the
macro-economic uncertainty.” Its shares rose 1.3 percent lower
to $24.21. [ID:nN12173518]

Also on the downside, Morgan Stanley (MS.N: ) (Read more about the money market today. ) fell 3.2
percent to $27.48 after the Wall Street Journal reported U.S.
officials were probing whether it mislead investors about
mortgage derivative products it helped create. The chief
executive said he had no knowledge of any federal
investigation. [ID:nTOE64B07I]

On the economic front, the U.S. trade deficit widened in
March to its highest level in more than a year as both imports
and exports rose in a sign of improved U.S. and foreign demand.
[ID:nN12149695]

“This is good news since it suggests the consumer is doing
a lot better than some had feared, though obviously we don’t
want these imbalances forever,” Peta said.

Materials shares also were up as the price of gold surged
to a record high of $1,244.45 an ounce, a gain of nearly 20
percent since early February.

The PHLX gold and silver index (.XAU: ) rose 1 percent, while
Freeport-McMoRan Copper and Gold Inc (FCX.N: ) gained 2.4 percent
to $71.89.

Investing Tools

(Editing by Jeffrey Benkoe)

US STOCKS-Markets gain as Spain plan lifts multinationals