2013.09.0506:57:40UTC+00U.S. stocks soar ahead of Syria vote, economic reports

U.S. stocks bolster, led by automakers and technology firms, as a Senate panel voted to authorize military action in Syria and the Federal Reserve stated that the economy maintained a “modest to moderate” pace of development.

Ford Motor Co. and General Motors Co. shifts up at least 3.5 percent after sales beat forecasts. Micron Technology Inc. and SanDisk Corp soared more than 3.3 percent after a fire forced rival SK Hynix Inc. to stop operations at a factory in China. Apple Inc. acquired 2.1 percent as Cantor Fitzgerald LP initiated coverage of the shares with a purchase rating and amid speculation that the firm may team up with China Mobile Ltd.

Fed Stimulus

The Fed said today the economy continued to grow from early July through late August, even as borrowing costs increased. The central bank’s Beige Book survey of economic conditions in 12 Fed districts showed consumers spent more on travel and tourism, while manufacturing expanded “modestly.”

‘Fundamental Underpinnings’

“The employment number is going to help drive the Fed,” Jim Landreth, a portfolio manager with 300 North Capital LLC in Pasadena, California, said by phone. His firm oversees $640 million. “The Fed is going to be careful. They don’t want rates to spike up again because housing has been one of the fundamental underpinnings of this recovery.”

Earnings Ratio

Emerging markets have a trailing price-to-earnings ratio of 11.8 and the U.K. has a multiple of 13.3, the firm said. The benchmark gauge for U.S. equities trades at 15.9 times profit, according to data compiled by Bloomberg.

Chipmakers Rally

Micron climbed 5.3 percent to $14.75 while SanDisk spiked 3.3 percent to $57.14. SK Hynix, the world’s second-largest maker of computer-memory chips, is ascertaining if there are any casualties and investigating the cause of the fire, which occurred at a plant in Wuxi, China.

Networking Equipment

Networking-equipment makers rallied after Ciena Corp. posted profit and sales that beat analysts’ estimates. Ciena, which provides fiber-optic networking gear for carriers such as AT&T Inc., jumped 14 percent to $23.54. Phone stocks rallied 1.3 percent as a group, the most among 10 main S&P 500 industries.

E*Trade Dividend

E*Trade Financial Corp. rallied 8.1 percent to $15.71, the biggest gain in the S&P 500. The online brokerage said a subsidiary will pay a $100 million dividend to the parent company and plans to make similar payments every quarter.

Microsoft Corp. lost 2.2 percent, the most in the Dow, to $31.20. Morgan Stanley downgraded the world’s biggest software maker to equal weight, a rating comparable to neutral, from overweight, which is similar to buy. The company’s 5.44 billion-euro ($7.2-billion) deal to with Nokia Oyj’s devices unit brings execution risks and increased expenditure, the brokerage wrote in a note.

LinkedIn Corp. stepped down 2.9 percent to $238.93. The owner of the world’s biggest professional-networking website said in a filing it plans to sell 4.17 million shares of its Class A stock. LinkedIn estimated it will raise $1 billion from the sale, based on a closing price of $240.04 on Aug. 30.

SAIC Inc. tumbled 4.9 percent to $14.41. The company, which provides scientific services for government agencies related to national security, posted second-quarter revenue that missed analysts’ estimates and cut its annual sales forecast.