U.S. shares rose today after Federal Reserve Chairwoman Janet Yellen reaffirmed her view that interest rates could rise this year as the economy improves. The S&P 500 (INDEXSP:.INX) added 0.2 percent to 2,112.60 at 11:41 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) inched up 0.1 percent to 18,072.88, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) rose 0.3 percent to 5,120.07. Most followed shares included Celgene, PayPal, LinkedIn, Yum! Brands, Cummins, BofA, BlackRock, Delta Air, CSX, and Allegheny.
In health-care shares, Celgene (NASDAQ:CELG) rose 9.2 percent to $134.13 as the U.S. biotechnology company agreed to acquire Receptos (NASDAQ:RCPT) for $7.2 billion. Celgene will pay $232 a share in cash, a 12 percent premium to yesterday's closing price. The transaction is a departure for Celgene, which has bet more on partnerships with smaller biotech companies than on outright takeovers. Shares of Receptos gained 10.3 percent to $228.51.
In technology shares, PayPal Holdings (NASDAQ:PYPLV) rose 1.8 percent to $37.60 after Standard & Poor’s Financial Services announced the payments company will join the S&P 100 and the S&P 500 indexes, replacing eBay Inc. and Noble Corp.
LinkedIn (NYSE:LNKD) jumped 3.9 percent to $222.24. Barclays upgraded the business social network to "overweight" from "equal weight," evaluating the issues that impacted results during the first quarter are cyclical and not structural. Barclays said advertising demand for LinkedIn is high and that other aspects of the business will be positive for future results.
In consumer stocks, Yum! Brands (NYSE:YUM) fell 2.4 percent to $89.29 after the owner of Pizza Hut and KFC reported its fourth straight quarter of falling sales, indicating that the company is still struggling to regain lost ground in China after a food scandal last year. Net income fell to$235 million, or $o.53 per share, in the quarter ended June 13, from $334 million, or $0.73 per share, a year earlier. Excluding items, the company earned 0.69 per share, beating the average estimate of a profit of $0.62, according to Capital IQ data. Revenue fell to $3.11 billion from $3.20 billion, below the Wall Street consensus of $3.19 billion. This marks the fourth straight quarter of revenue decline.
Cummins (NYSE:CMI) gained 0.6 percent to $130.64. Cummins raised its quarterly dividend by 25 percent, to $0.975 per share from $0.78. The engine maker said the move reflects confidence in its long-term prospects.
In financials, Bank of America (NYSE:BAC) rose 3.2 percent to $17.68 after second-quarter earnings topped expectations. Revenue also came in above estimates. BofA's results were helped in part by substantially lower legal costs.
BlackRock (NYSE:BLK) advanced 1.5 percent to $347.00 as the world's largest money manager reported earnings ahead of forecasts. CEO Larry Fink said the firm's diversified business model helped overcome continued market volatility during the quarter.
In industrials, Delta Air Lines (NYSE:DAL) dropped 1.4 percent to $43.03. The Atlanta, Georgia-based carrier reported that second-quarter profit jumped 85 percent, topping expectations, but forecast a third-quarter drop in unit revenue. Delta CEO Richard Anderson said the company continues to benefit from a drop in fuel prices.
CSX (NYSE:CSX) gained 1.9 percent to $32.69. CSX reported quarterly profit of $0.56 per share, $0.03 above estimates, with the railroad operator's revenue very slightly below analyst forecasts. CSX was helped by greater productivity and lower fuel prices.
In other stocks, Allegheny Technologies (NYSE:ATI) tumbled 9 percent to $25.64 after warning it expects to post a loss in the second quarter, citing poor demand from energy markets and increased competition in its flat-rolled products segment.