Apple closes up nearly $50, boosting markets

An almost nineper cent leap in Apple Inc.s shares today following itsforecast-shattering earnings reportpowered a large gain on the Nasdaq, while other markets were up more modestly.

Apple stock opened up $55.71 US, for a gain in market cap of $51.9 billion US. That increase alone in the companys value is about 7 times the entire value of BlackBerry maker and Apple competitor Research In Motion, or 73 per cent more than the market capitalization of CIBC.

By closing time,thecompany's shares retreated slightly to $610, for an advance of$49.72.

The Nasdaq composite index was up68 points as a result, or2.3 per cent, at mid-morning. Apple is the largest single component by far of the index, forming 11.6 per cent of its weighting.

The S&P/TSX indexalso performed well and rose by 131 points, or1.1 per cent, to 12,111. The index benefited from strength inresource stocks, including a 3.9 per centrise in shares of PotashCorp. Only the telecom sector fell, dragged down by Tuesday'sweak earnings reportfrom Rogers Communications.

Other markets posted modest gains. The Dow Jones industrial averagegained89 points, or 0.7 per cent, to 13,091.

"Apple gave a very good result and that boosted confidence," said Lee Kok Joo, head of research at Phillip Securities in Singapore. "But we are still looking for the U.S. GDP estimate on Friday and just waiting to see the direction of the U.S. economy."

European markets were higher, with London's FTSE 100 index up 0.2 per cent, Frankfurt's DAX up 1.7 per cent and the Paris CAC 40 risingtwo per cent.Earlier in Asia, Japan's Nikkei 225 indexroseone per cent while Hong Kong's Hang Seng fell 0.2 per cent.

The Canadian dollar was up 0.40 of a cent to $1.0168 US.

Fed statement has little impact

The U.S. Federal ReservesaidWednesday thatthe American economy is growing moderately while cautioning that risks from Europe remain.

In a statementafter a two-day meeting, the Fed said that the U.S. job market has improved slightly but that unemployment remains elevated. It said the housing market has improved somewhat but remains depressed. It also pointed to a pickup in inflation but said it should be only temporary.

The Fed stuck with its plan to keep a key short-term interest rate near zero through at least late 2014. It also announced no new plans for further bond buying after a current program ends in June.Those decisions had been widely expected and had little impact on financial markets.

"There is little sentiment for additional stimulus at the current time," analysts at Credit Agricole CIB in Hong Kong wrote in an email ahead of the Fed's statement.

Investors had been watching the statement to see whether they needed to revise their expectations of how long U.S. borrowing costs will remain at their super-low level.

Sales of iPhone double

Apple's second-quarter earnings, released Tuesday after markets closed, blew past analysts' expectations. The computer and mobile-device maker posted profits of $11.6 billion US, or $12.30 a share, up from $6 billion for the same period last year. Revenue climbed 59 per cent to $39.2 billion.

Analysts surveyed by FactSet Research had expected the company to earn $10.07 per share on sales of $37 billion.

The companyalso said it sold 35 million iPhones in the three-month period, or nearly double the total in the same time frame last year.

Traders didn't wait until Wednesday's market opening to pile into Apple stock. The firm's shares shares were up nearly $40 to near $600 in after-hours trading on Tuesday.

In Canadian earnings, Encana Corp. reported net earnings of $12 million for the first quarter of 2012, compared with a net loss of $361 million in the same period last year. Company shares were up71 cents to $18.36 on the TSX.Nexen also reported earnings.