Stocks ended higher on Tuesday, as a strong June sales report from Wal-Mart Stores Inc. and a jump in factory orders helped investors look past surging oil prices.
The Dow Jones Industrial Average rose 68.36, or 0.7 percent, to 10,371.80. The Standard & Poor’s 500 Index gained 10.55, or 0.9 percent, to 1,204.99. The Nasdaq Composite Index rose 21.38, or 1 percent, to 2,078.75.
Wal-Mart raised its sales projection for June to the highest level since May 2004. Wal-Mart shares closed up 3.2 percent to $49.80 after the world’s biggest retailer estimated that June sales at stores open at least a year rose 4.5 percent.
U.S. factories saw orders rise by 2.9 percent in May, the best showing in 14 months, with most of the strength reflecting robust demand for airplanes and parts. The sizable advance came after 0.7 percent increases registered in both March and April, the Commerce Department reported on Tuesday.
Among local companies, shares of Digital Insight Corp. rose 3.5 percent to $24 after the Calabasas-based company’s stock was raised to “strong buy” from “outperform” by analyst Wayne Johnson at Raymond James and cut to “sell” from “hold” by analyst Ivan Feinseth at Matrix USA. Digital Insight develops software that allows bank and credit union customers to make balance inquiries, view transaction histories, transfer funds and pay bills over the Internet.
Pacific Energy Partners LP gained 3.4 percent to $32.85 after the Long Beach-based oil-pipeline operator agreed to pay $455 million to Valero LP for two fuel terminals in California, three refined products terminals in the East Coast and a 550-mile product pipeline with four truck terminals and storage in the Rocky Mountains.
Health Net Inc. rose 2.2 percent to $38.86 after Standard & Poor’s Ratings Services said that its current ratings and outlook on the Woodland Hills-based managed health care company were not affected by a $117 million judgment against the company awarded by a Louisiana state court jury on July 1. The lawsuit arose from the 1999 sale of three subsidiary health plans.
On the down side, KB Homes slid 1 percent to $75 after the L.A. homebuilder’s stock rating was cut to “underperform” from “neutral” by Credit Suisse First Boston analyst Ivy Zelman. She said that the company is exposed to an “alarming” level of risk caused by real-estate speculators.
