US STOCKS-Wall St climbs as Spain plan helps multinationals

* Spain sets austerity measures, lifting multinationals

* Disney falls after results, Macy’s higher

* Fidelity National Information jumps on deal report

* Dow up 1.2 pct, S&P up 1.2 pct, Nasdaq up 1.6 pct

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

By Ryan Vlastelica

NEW YORK, May 12 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) rallied on
Wednesday, lifted by multinational technology and industrial
shares after 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 revealed a plan on Wednesday to slash civil service
pay and cut public-sector jobs, just a few days after EU
finance ministers approved a 750-billion-euro ($1 trillion)
bailout package to stem the debt crisis, cheering investors.
For details, see [ID:nLDE64B0SK]

“There was some concern about whether Spain would be
serious about the measures it would have to take, so the moves
it’s making is a positive signal,” said John Massey, portfolio
manager at SunAmerica Asset Management in Jersey City, New
Jersey.

Massey said cyclical companies with a lot of international
exposure, including those in the tech and industrial sectors,
had been especially vulnerable to the issues in Europe,
adding: “That’s why they’re having a relief rally today.”

The Dow Jones industrial average (.DJI: ) was up 128.02
points, or 1.19 percent, at 10,876.28 The Standard & Poor’s
500 Index (.SPX: ) was up 13.76 points, or 1.19 percent, at
1,169.55. The Nasdaq Composite Index (.IXIC: ) was up 37.37
points, or 1.57 percent, at 2,412.68.

International Business Machines Corp (IBM.N: ) provided the
top lift to the Dow, adding 3.6 percent to $131.36.

Intel Corp (INTC.O: ) ranked among the Dow’s biggest
percentage gainers, while it was the Nasdaq’s most active
stock. Intel was up 3.2 percent at $23.

Heavy equipment maker Caterpillar Inc (CAT.N: ) jumped 2.8
percent to $67.88.

Tech shares also got a boost from Fidelity National
Information Services Inc (FIS.N: ), which jumped 3.6 percent to
$29.90 after a source said a private equity group was
negotiating an acquisition potentially worth about $15
billion. [ID:nN11176888]

On the downside, though, Dow component Walt Disney Co
(DIS.N: ) fell 0.6 percent to $35.54 a day after second-quarter
earnings beat expectations, but analysts said results at its
television network division were disappointing.
[ID:nN11225225]

Elsewhere 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 stock rose 1.8 percent to
$24.33. [ID:nN12173518]

Also on the downside, Morgan Stanley (MS.N: ) (Read more about the money market today. ) fell 3.3
percent to $27.45 after the Wall Street Journal reported U.S.
officials were probing whether it misled 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]

The materials sector also climbed as the price of gold
surged to a record high of $1,244.45 an ounce — up nearly 20
percent since early February.

The PHLX gold and silver index (.XAU: ) rose 1.5 percent,
while Freeport-McMoRan Copper and Gold Inc (FCX.N: ) gained 3
percent to $72.32.

Stock Trading

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

US STOCKS-Wall St climbs as Spain plan helps multinationals