* FedEx rises after increasing annual outlook
* Year's biggest gainers among day's top performers
* Visa, MasterCard slump on proposed debit card fee cap
* Dow up 0.4 pct, S&P up 0.6 pct, Nasdaq up 0.8 pct
* For up-to-the-minute market news see []
(Updates to close)
By Ryan Vlastelica
NEW YORK, Dec 16 (Reuters) - U.S. stocks, bucking a trend
of late-day selloffs, ended higher on Thursday as economic
bellwether FedEx offered a bullish profit outlook that augured
well for broad growth.
Stocks that performed well in 2010 were among Thursday's
biggest gainers as investors sought to boost returns by the
year's end. Advancing stocks outnumbered decliners by more than
two to one on both the New York Stock Exchange and Nasdaq.
Package shipper FedEx Corp <FDX.N> raised its full-year
outlook, though its quarterly profit and revenue missed
expectations. Shares rose 2 percent to $94.22 while larger
rival United Parcel Services <UPS.N> gained 2.1 percent to
$73.76 and the Dow Jones Transportation Average <.DJT> gained
1.3 percent. For details, see []
"The fact that FedEx missed its earnings is overshadowed by
its very strong outlook, which is a good indicator that we're
looking for good economic times ahead," said Kimberly Foss,
president at the Sacramento, California-based Empyrion Wealth
Management, which has more than $200 million in assets under
management.
Visa Inc <V.N> and MasterCard Inc <MA.N> tumbled on heavy
volume after the Federal Reserve issued a proposal that would
force banks and card networks to slash the fees they charge
retailers on debit cards. Visa sank 13 percent to $67.19 while
MasterCard slumped 10 percent to $223.49. []
The Dow Jones industrial average <> was up 41.78
points, or 0.36 percent, at 11,499.25. The Standard & Poor's
500 Index <.SPX> was up 7.64 points, or 0.62 percent, at
1,242.87. The Nasdaq Composite Index <> was up 20.09
points, or 0.77 percent, at 2,637.31.
Stocks gained momentum after a slow start to the day, with
big gainers for the year boosting the Nasdaq.
Intuit Inc <INTU.O>, known for its tax-filing software,
gained 3 percent to $49.35 after rising about 60 percent for
the year.
Some shares raised hopes consumers will be less frugal over
the holiday shopping season. Amazon.com Inc <AMZN.O> rose 1.4
percent to $178.10 and its stock was up 32 percent for the
year.
After the closing bell, Oracle Corp <ORCL.O> reported a
surge in new software sales in its second quarter, lifting its
shares 3.2 percent to $31.24. []
Starbucks Corp <SBUX.O> rose 2.3 percent to $32.59 after
Goldman Sachs gave the coffee chain a "conviction buy" rating
with a $44 price target.
Economic data added to the positive mood. Factory activity
in the U.S. mid-Atlantic region unexpectedly rose in December,
while jobless claims dipped for a second week. November housing
starts rose, but permits for future home construction dropped
to a 1-1/2 year low. []
U.S.-listed shares of Research in Motion <RIM.TO><RIMM.O>
rose 1.8 percent to $60.28 after it reported its third-quarter
results after the close. []
"While we expect the market to continue growing, the slower
growth we expect is going to be good for those companies that
execute well, but challenging for the ones that have been
struggling," said Alan Gayle, senior investment strategist at
RidgeWorth Investments in Richmond, Virginia.
(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)
