US STOCKS-Markets rise on FedEx outlook, strength in tech shares

* FedEx results miss estimates, raises outlook

* Starbucks rises, Goldman resumes with conviction buy

* Jobless claims fall in latest week

* Dow up 0.3 pct, S&P up 0.5 pct, Nasdaq up 0.6 pct

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

By Ryan Vlastelica

NEW YORK, Dec 16 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) rose on Thursday
after bellwether FedEx offered a bullish forecast, while
investors continued to pour money into shares that have done
well this year.

Package shipper FedEx Corp (FDX.N: ) raised its full-year
outlook on unexpectedly strong holiday volume and an improved
economic view, though it reported quarterly profit and revenue
that missed expectations.

Shares of FedEx rose 1.9 percent to $94.15, helping the S&P
industrials sector index (.GSPI: ) gain 1.1 percent and helping
to lift the Dow Jones Transportation Average (.DJT: ) by 1.4
percent. For details, see [ID:nN16208769]

“The fact that FedEx missed its earnings is overshadowed by
its very strong outlook, which is a good indicator that we’re
looking for good economic times ahead,” said Kimberly Foss,
president at the Sacramento, California-based Empyrion Wealth
Management, which has more than $200 mln in assets under

Stocks gained momentum after a slow start to the day, with
big gainers for the year boosting the Nasdaq.

Intuit Inc (INTU.O: ), best known for its tax-filing software
TurboTax, gained 2.9 percent to $49.30 after rising about 60
percent for the year. Inc (AMZN.O: ) rose 1.4 percent to $178.10 with
the stock, up 32 percent for the year, also helped by
investors’ hopes that consumers will be less frugal over the
holiday shopping season, which could benefit Amazon.

“While we expect the market to continue growing, the slower
growth we expect is going to be good for those companies that
execute well, but challenging for the ones that have been
struggling,” said Alan Gayle, senior investment strategist,
RidgeWorth Investments in Richmond, Virginia.

The Dow Jones industrial average (.DJI: ) was up 32.28
points, or 0.28 percent, at 11,489.75. The Standard & Poor’s
500 Index (.SPX: ) was up 6.08 points, or 0.49 percent, at
1,241.31. The Nasdaq Composite Index (.IXIC: ) was up 16.55
points, or 0.63 percent, at 2,633.77.

Also on the Nasdaq, Starbucks Corp (SBUX.O: ) rose 2.2
percent to $32.58 after Goldman Sachs resumed coverage of the
restaurant sector and gave the coffee chain a “conviction buy”
rating with a $44 price target.

Economic data added to the positive backdrop, with factory
activity in the U.S. Mid-Atlantic region unexpectedly rising in
December, while jobless claims dipped for a second week.
November housing starts rose, but permits for future home
construction dropped to a 1-1/2 year low. [ID:nN16214117]

However, worries over sovereign debt persisted after Spain
paid a hefty premium at its final bond auction of the year.
Also, the European Central Bank increased its financial
firepower in the debt crisis by almost doubling its capital to
cope with increased credit risk and market volatility.

Visa Inc (V.N: ) and MasterCard Inc (MA.N: ) both tumbled after
the Federal Reserve staff proposed a 12-cent cap on debit card
fees. Visa dropped 6.2 percent to $72.10 while MasterCard lost
5.7 percent to $235. [ID:nWEN4611]

Discover Financial Services (DFS.N: ) fell 3.2 percent to
$18.52 after reporting its fourth-quarter results.

(Editing by Chizu Nomiyama)

US STOCKS-Markets rise on FedEx outlook, strength in tech shares