US STOCKS-S&P ends at 29-month high; techs, commods lead

                                

                                
 * Dow touches 12K for first time since June 2008
                                
 * U.S. Fed lukewarm on economy, jobs
                                
 * Boeing tumbles after results, forecast
                                
 * Juniper, Fortinet results boost tech shares
                                
 * Dow up 0.1 pct, S&P up 0.4 pct, Nasdaq up 0.7 pct
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates with Qualcomm and Starbucks results after closing
bell)
                                
 By Angela Moon
                                
 NEW YORK, Jan 26 (Reuters) - The S&P 500 closed at a
29-month high on Wednesday led by gains in tech and commodity
shares, as investors largely ignored the U.S. Federal
Reserve's lukewarm economic assessment.
                                
 The stock market had little reaction to the Fed, which
said high unemployment still justifies a $600 billion
bond-buying program that has helped equities rally in the last
few months. For details, STORY: [ID:nN25283937] TEXT:
[ID:nTLAQCE72L]
                                
 Strong earnings continue to support further gains in
stocks. The technology sector was led higher by network
equipment maker Juniper Networks <JNPR.N>, whose quarterly
sales beat Wall Street's expectations. Shares rose 6.4 percent
to $37.05.
                                
 "We seem to have gone back to focusing on the basics --
the economy and the earnings. Earnings are coming in good and
the economy is taking baby steps forward," supporting the
stock market, said Jack Ablin, chief investment officer at
Harris Private Bank in Chicago.
                                
 "The technology sector especially is the leading sector in
the broad market and its performance is impacting the rest of
the market."
                                
 Commodity shares got a boost after Allegheny Technologies
Inc <ATI.N> forecast stronger sales in 2011, helped by higher
base prices for metals. The stock surged 11.8 percent to
$65.29. The Reuters-Jefferies CRB index <.CRB>, which tracks
                                
 The S&P materials sector index <.GSPM> rose 2.1 percent.
                                
 The Dow Jones industrial average <.DJI> edged up 8.25
points, or 0.07 percent, to end at 11,985.44. The Standard &
Poor's 500 Index <.SPX> advanced 5.45 points, or 0.42 percent,
to 1,296.63. The Nasdaq Composite Index <.IXIC> gained 20.25
points, or 0.74 percent, to 2,739.50.
                                
 The Dow rose above the psychologically important 12,000
for the first time since June 2008, but ended slightly lower
as the 30-stock average was held in check by Boeing Co
<BA.N>.
                                
 Boeing shares fell 3.1 percent to $70.02 after the U.S.
plane maker posted a drop in quarterly profit and offered a
disappointing forecast. [ID:nN26123271].
                                
 Thomson Reuters' latest data showed 69 percent of the 144
S&P 500 companies that have reported earnings so far have
exceeded estimates.
                                
 The S&P 500 index continues to show overbought readings in
various short-term technical indicators after last week's
decline released some selling pressure.
                                
 Short-term support kicks in at 1,284, its 14-day moving
average, while the 1,300-1,305 area, which are closing highs
reached in August 2008, could result in resistance.
                                
 Fortinet <FTNT.O> shares jumped 16.9 percent to $39.65 a
day after the network security systems provider reported
market-beating quarterly results.
                                
 QUALCOMM UP LATE, STARBUCKS DROPS
                                
 After the bell, Qualcomm Inc <QCOM.O> shares jumped 4.3
percent to $54.11 after the company raised its forecast for
2011 revenue and prediceted robust second-quarter revenue.
[ID:nN26182660]
                                
 But Starbucks Corp <SBUX.O> shares slid 2 percent to
$32.40 in extended trade after the copmany forecast full-year
earnings below analysts' expectations due to rising coffee
prices. [ID:nN26217164]
                                
 The Reuters-Jefferies CRB Index <.CRB>, which tracks 19
commodities, including coffee, rose 1.6 percent for the day.
                                
 Late on Tuesday, U.S. President Barack Obama's call for a
lower corporate tax rate also supported equities, as any move
in that direction is seen as a boost to profits.
[ID:nN2690910]
                                
 In the latest economic data, new U.S. single-family home
sales rose in December to their highest level in eight months.
The PHLX housing index <.HGX> advanced 1.2 percent, with
Hovnanian Enterprises Inc <HOV.N> adding 7.6 percent to
$4.80.
                                
 Trading volume was 8.10 billion shares on the New York
Stock Exchange, the American Stock Exchange and Nasdaq, down
from last year's estimated daily average of 8.47 billion
shares.
                                
 Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 7 to 3. On the Nasdaq, about 20 stocks rose
for every seven that fell.
 (Reporting by Angela Moon; Editing by Jan Paschal)