* Goldman posts stronger-than-expected profit, raises
* Johnson & Johnson, UnitedHealth Group increase profit
* Citigroup CEO Pandit resigns unexpectedly
* Dow up 0.8 pct, S&P 500 up 0.9 pct, Nasdaq up 1.1 pct
By Caroline Valetkevitch
NEW YORK, Oct 16 (Reuters) - U.S. stocks rose on Tuesday
after earnings from Johnson & Johnson and other bellwether
companies beat expectations, raising hopes for the rest of the
U.S. reporting season.
Dow components Johnson & Johnson and UnitedHealth
Group both increased their full-year profit views while
Goldman Sachs raised its dividend.
Goldman Sachs also posted earnings that beat expectations
and revenue that more than doubled, but it earned less money
from customers' trading and its stock fell 1.2 percent to
$122.95. The results followed upbeat earnings from Citigroup Inc
in the previous session.
"There may be a push upwards, depending on results, but
we'll be waiting until economic indicators improve," said
Mohannad Aama, managing director of Beam Capital Management LLC
in New York.
Shares of Johnson & Johnson, the diversified U.S. healthcare
company, rose 1.2 percent to $69.42. In contrast, UnitedHealth
shed 1.2 percent to $56.82.
The S&P 500 is on track for its second consecutive advance,
and its best two-day run in a month on the heels of last week's
2.2 percent slide. That was the benchmark index's worst weekly
decline in four months as investors looked for more evidence on
the global economic climate from large multinational companies.
The Dow Jones industrial average rose 111.13 points,
or 0.83 percent, to 13,535.36. The Standard & Poor's 500 Index
shot up 12.19 points, or 0.85 percent, to 1,452.32. The
Nasdaq Composite Index added 31.66 points, or 1.03
percent, to 3,095.84.
The blue-chip Dow average is set to mark its biggest one-day
percentage gain since Sept. 13, when the Federal Reserve
unveiled its third round of stimulus, or quantitative easing,
known as "QE3."
Coca-Cola Co also reported a rise in earnings, but
quarterly revenue came in short of Wall Street's expectations,
hurt by declines in Europe and Asia. Its stock lost 1.3 percent
Citigroup unexpectedly announced that Chief Executive Vikram
Pandit had resigned effective immediately, along with Chief
Operating Officer John Havens. Michael Corbat, previously chief
executive for Europe, Middle East and Africa, was named to
"It certainly is a bit of a shock," said Jeff Morris, head
of U.S. equities at Standard Life Investments in Boston.
"Certainly the transitioning and the messaging was more abrupt
than I think anybody would have anticipated."
Shares of Citigroup rose 0.5 percent to $36.84.
Intel and International Business Machines Corp
are scheduled to report earnings after the closing bell.
Their results will be among the first major earnings reports
from the tech sector, which has been hit by a number of profit
warnings, including from Intel.
Shares of Intel rose 2.3 percent to $22.23. IBM shares rose
0.7 percent to $210.42.
Economic data showed the overall U.S. Consumer Price Index
rose 0.6 percent in September as the cost of gasoline surged,
posing a threat to consumers' spending power. On the other hand,
inflation pressures looked unlikely to derail the Federal
Reserve's ultra-easy policy path. Excluding volatile food and
energy prices, core CPI was up 0.1 percent - less than the
forecast for a gain of 0.2 percent.