U.S. MARKET AVERAGES

U.S. stocks sharply advanced Wednesday, rebounding from steep losses posted yesterday. Stocks were lifted by gains in big-cap technology stocks like Cisco Systems that boosted the Nasdaq 1% with further help provided by strong earnings from companies like Autodesk. Upbeat economic data on personal income and spending was another favorable factor for the bullish sentiment as investors hoped the Fed Reserve has a reason to end interest-rate hikes.

The Commerce Department revealed that personal income rose in January by 0.7%, following a revised 0.5% increase in December. It also said that personal spending advanced by 0.9%, following the December's revised gain of 0.7%.

Medco Health Solutions (MHS: chart) broke to a new 52-week high on strong earnings. Staples (SPLS: chart) built on earnings-related gains to extend its peak. Cisco (CSCO: chart) stretched its high, adding to a gain posted Tuesday.

Cogent Systems (COGT: chart) broke to a fresh 52-week low, dragged down by disappointing earnings. HouseValues (SOLD: chart) dropped to a new low on earnings news as well. Pilgrim's Pride (PPC: chart) fell to a new low after the company withdrew its guidance for the second quarter and full year.

MOVERS AND SHAKERS

Joy Global (JOYG: chart) said Q1 net profit surged to $60 million, or 48 cents a share, from $22 million, or 18 cents a share a year ago. Revenue jumped 48% to $553.3 million. It predicted revenue between $2.35 billion and $2.55 billion for the year. The company’s shares rose 11%.

Altera (ALTR: chart), semiconductor maker, was upgraded at Bear Stearns to outperform from peer perform, citing the belief that the company will raise its revenue outlook during its mid-quarter update on March 6. The broker introduced a year-end 2006 stock price target of $25. The stock gained 4.2%.

HouseValues (SOLD: chart) reported net income increase of 15 cents a share from 8 cents in the year-earlier period. Revenue rose to $25.2 million from $14.4 million. Analysts expected per-share earnings of 14 cents on revenue of $29 million. The stock slipped 26%.

Cogent Systems (COGT: chart), provider of fingerprint biometric solutions, reported Q4 net income per share doubled from the year-earlier period to 22 cents, beating estimates of 20 cents. Revenue rose 46% to $46.2 million. The company’s shares fell 19.2%.

Hedrick & Struggles (HSII: chart), human-resources consulting firm, reported Q4 net income drop of 36 cents a share against 44 cents in the year-earlier period, citing higher tax rate. Earnings for the quarter failed to meet estimate of 50 cents per share. Revenue rose 2.1% to $100.7 million. The stock dropped 11%.

ECONOMIC NEWS

Crude oil inventories advanced in the latest week, according to government statistics released Wednesday, adding to a recent string of gains. Meanwhile, stocks of gasoline recorded another rise as well.

The Department of Energy''s Energy Information Administration revealed that crude oil inventories climbed by 1.6 million barrels for the week ended February 24, rising to 328.3 million barrels from the prior week''s level of 326.7 million barrels. This followed an advance of 1.1 million barrels in the previous week. Oil inventories were 9.1% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week increase of 300,000 barrels, the government said. This added to a recent string of gains, including an advance of 100,000 barrels in the previous week. Gasoline stocks were 0.1% above their levels of last year. Inventories of distillate fuel oil ticked down by 1.5 million barrels in the most recent week.
Personal income and spending showed notable growth in the month of January, according to a report from the Department of Commerce. At the same time, the report also showed an acceleration in the pace of inflation.

The report said personal income rose 0.7 percent in January following an upwardly revised increase of 0.5 percent in December. Economists had expected income to increase by 0.6 percent compared to the 0.4 percent growth originally reported for December.

The Commerce Dept. noted that the increase in personal income reflected several special factors, including new Medicare prescription drug plan payments and cost-of-living adjustments to several federal transfer payment programs.

The report also showed that personal spending grew by 0.9 percent in January after a downwardly revised increase of 0.7 percent in December.

The growth in personal spending came in slightly below the expectations of economists, who had expected growth of 1.0 percent compared to the 0.9 percent growth originally reported for December.

With personal spending growth outpacing the increase in personal income, the personal savings rate came in at a negative 0.7 percent in January compared with a negative 0.4 percent savings rate in December.