Stocks Rise on Spin-Off, Earnings News Despite Weak Data

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U.S. stocks gained ground again on Tuesday, as American Express Co. said it would spin off its personal finance unit and a drop in oil prices offset the impact of lower-than-expected manufacturing activity.


Shares of American Express, the credit card and travel services company, surged more than 6 percent after the company said the move would improve its profitability.


Crude futures fell $1.08 to $47.12 on the New York Mercantile Exchange, as traders bet that OPEC would not cut output anytime soon.


The Institute for Supply Management said its index of national manufacturing activity slipped to 56.4 in January from 57.3 in December, below forecasts for a dip to 57. A reading of 50 or above in the index means the manufacturing sector is expanding, while a figure below 50 represents a contraction.


The Dow Jones Industrial Average was up 62 points, or 0.6 percent, at 10,551.94. The Standard & Poor’s 500 Index was up 8.14 points, or 0.7 percent, at 1,189.41. The Nasdaq Composite Index was up 6.29 points, or 0.3 percent, at 2,068.70.


On the local front, shares of Fremont General Corp. jumped 7.8 percent to $26.39 after the Santa Monica-based financial services holding company announced that the Superior Court of the State of California had dismissed charges against it in a case where the company was charged with improperly making use of net operating losses allegedly belonging to Fremont Indemnity.


IMPCO Technologies Inc. rose 2.6 percent to $6.00 after the Cerritos-based gaseous fuels component maker announced a public offering of 4 million shares of its common stock at a price of $5.75 per share. Net proceeds to IMPCO after expenses are expected to be nearly $20.6 million.


And shares of THQ Inc. edged up 2.7 percent to $22.86 after the Calabasas Hills-based video game publisher released positive earnings for the third quarter ended Dec. 31. The company reported net income of $62.9 million ($1.58 per diluted share), compared with $30.4 million (78 cents) for the year-ago period. Net sales rose 37 percent to $400.3 million from $293.1 million in the year-ago period.


In other activity, Earl Scheib Inc. lost 3.7 percent to close at $3.16 after the Sherman Oaks-based auto paint and body shop operator said it had abandoned plans to sell the company. Scheib ended its relationship with investment banking firm Ryan Beck & Co. effective Jan. 13. Ryan Beck had been retained to help the company explore a possible sale.


And shares of Beverly Hills-based Hilton Hotels Corp. dipped 0.6 percent to $22.12 after the hotel operator’s stock was downgraded to “neutral” from “add” by Calyon Securities.

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