Wall Street edges up on earnings, data

NEW YORK (Reuters) - Stocks edged higher on Wednesday as stronger-than-expected earnings from companies including Deere & Co and upbeat economic data more than offset a decline in commodity-related shares.

A bounce back in recently battered health insurer stocks gave additional support to equities.

Deere stock rose 4.4 percent to $56.13 after the farm equipment maker reported quarterly earnings that topped expectations and raised its fiscal 2010 outlook for machinery sales growth.

Shares of Whole Foods Market Inc shot up 12.1 percent to $34.21 and boosted the S&P consumer staples sector <.GSPS> a day after the supermarket chain posted a better-than-expected quarterly profit and raised its full year outlook.

"We've seen some good earnings and that's been the catalyst," said Andy Fitzpatrick, director of investments at Hinsdale Associates, in Hinsdale Illinois. "Valuation and fundamentals are starting to become more recognized by this market."

The results follow the upbeat trend in fourth-quarter U.S. corporate earnings, with more than 70 percent of the Standard & Poor's 500 companies beating analyst estimates so far, according to Thomson Reuters data.

The Dow Jones industrial average <.DJI> gained 19.80 points, or 0.19 percent, to 10,288.61. The Standard & Poor's 500 Index <.SPX> gained 2.35 points, or 0.21 percent, to 1,097.22. The Nasdaq Composite Index <.IXIC> gained 6.50 points, or 0.29 percent, to 2,220.69.

Also helping sentiment, U.S. housing starts rose to a six-month high in January and industrial output also increased solidly, pointing to an economic recovery that was taking a firm hold.

United Technologies Corp shares gained 2.3 percent to $67.43 boosted by the output data and after the company's chief executive said orders from China were not slowing despite that country's efforts to curb lending. The CEO also hinted of a possible United Tech stock buyback.

Health care stocks were among the biggest gainers as health insurance providers rebounded from recent declines. The Morgan Stanley healthcare payor index <.HMO> , down in six of the last seven weeks, jumped 2.5 percent, its largest daily gain since early January. WellPoint Inc and Aetna Inc both rose more than 3 percent.

"There's valuation benefits in the healthcare sector in general," Fitzpatrick said.

On the down side were energy and materials shares, which gave up some of the gains that led the market to its best day in three months on Tuesday.

U.S. Steel Corp shares fell 1.8 percent to $50.20 and Chevron was off 0.5 percent at $72.64. An index of energy shares <.GSPE> declined 0.7 percent.

(Editing by Kenneth Barry)

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