US stocks rose on Wednesday, shrugging off earlier losses, after Kraft raised its outlook and a brokerage upgraded Merck & Co in welcome signs about future earnings. Major indexes had temporarily fallen after a government report showed crude oil stockpiles rose more than expected, a bearish sign for demand in the world's largest energy consumer.
The biggest boost to the Dow came from Merck, the second-largest US drug company. Its shares were up 4.1 percent to $39.07 after Credit Suisse upgraded the stock, saying the pharmaceutical giant's product pipeline "should bring upside, with improved visibility over the next 6-24 months." The Dow Jones industrial average rose 54.87 points, or 0.52 percent, to 10,682.28.
The Standard & Poor's 500 Index rose 7.61 points, or 0.67 percent, to 1,143.83. The Nasdaq Composite Index added 16.56 points, or 0.73 percent, to 2,299.14. Also lifting sentiment was Kraft Foods Inc, which raised its 2009 earnings outlook late on Tuesday. The Dow component rose 0.6 percent to $29.47.