U.S. shares moved sharply higher today as a fresh batch of economic news supported investors’ view that the Federal Reserve will raise interest rates only gradually. The S&P 500 (INDEXSP:.INX) rose 1 percent to 2,121,21 at 11:51 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 1.1 percent to 18,138.66, while the tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) gained 1.4 percent to 5,133.37. Most followed shares included BioMarin, Rite Aid, Lumenis, Oracle, Jabil Circuit, Southwest Airlines, Kroger, Fitbit, Colgate Palmolive, Bankrate, and AT&T.
In health-care shares, BioMarin Pharmaceutical (NASDAQ:BMRN) climbed 11.8 percent to $138.21 after the Novato, California-based company said its experimental drug for achondroplasia, or dwarfism, helped children in a mid-stage trial.
Rite Aid (NYSE:RAD) retreated 2.9 percent to $8.66 after the third-largest U.S. drugstore chain operator reported slower-than-expected quarterly same-store sales growth as the introduction of new generic drugs hurt pharmacy sales.
Lumenis (NASDAQ:LMNS) increased 13.7 percent to $13.73 after saying it agreed to be acquired by investment firm XIO Group for about $510 million, a little over a year since the Israeli medical company went public in the U.S.
In technology stocks, Oracle (NYSE:ORCL) slid 8.4 percent to $41.17 after the largest maker of database software posted fiscal fourth-quarter revenue and profit that missed analysts’ estimates.
Jabil Circuit (NYSE:JBL) slumped 7.5 percent to $22.51. The electronic maker earned an adjusted $0.49 per share for its latest quarter, matching estimates, but its sales fell below forecasts as did its current quarter and full-year earnings forecast. The technology company said it is continuing to invest in future growth despite a challenging macroeconomic environment.
In consumer shares, Southwest Airlines (NYSE:LUV) fell 1.2 percent to $33.39 after Barclays Plc cut its rating on the carrier to underweight, similar to sell, from overweight.
Kroger (NYSE:KR) rose 1 percent to $73.61 after reporting better-than-expected earnings in its first quarter as the grocer also lifted a key sales target for the year.
Fitbit (NYSE:FIT) jumped 50 percent to $30.04 in its NYSE trading debut. Its IPO has been priced at $20 a share, which is already above raised expectations, The Wall Street Journal reported. The offering raised $731.5 million and values the fitness device maker at approximately $4.1 billion.
Colgate Palmolive (NYSE:CL) advanced 1.3 percent to $67.25. Canaccord upgraded the consumer products company's shares to "hold" from "sell," after a pullback from its March highs. The firm said China-related issues have been resolved and that Colgate is now attractive as a defensive play.
In other stocks, Bankrate (NYSE:RATE) tumbled 18.7 percent to $11.26. Bankrate earned an adjusted $0.19 per share for its latest quarter, missing estimates by $0.01, and its revenues fell short of forecasts as well. It also issued a weaker than expected outlook for the current quarter and the full year. The financial information provider also reduced earnings for several prior years after conducting an internal review.
AT&T (NYSE:T) rose 0.5 percent to $34.98 even as the Federal Communications Commission said it plans to fine the second-largest U.S. wireless carrier $100 million for allegedly deceiving millions of smartphone customers about unlimited wireless data plans.