US sharemarkets surged late in the day on Monday to finish higher, despite several profit loss announcements.

The Dow Jones industrial average added 130.43 points, or 1.02 percent to close at 12,876.31, while the broader Standard & Poor's 500 gained 15.30 points, or 1.10 percent, to close at 1,403.58.

The technology-based Nasdaq composite added 42.97 points, or 1.76 percent, to close at 2,488.49.

Bond insurer MBIA announced a quarterly loss of US$2.4 billion quarterly loss over the credit market crunch, while Sprint Nextel reported results that fell from a year earlier.

Meanwhile delivery company FedEx, whose fortunes analysts often view as a barometer for the US economy issued a warning on Tuesday that its fourth-quarter earnings will not meet forecasts due to surging fuel costs.

Technology shares were boosted by an announcement by Research In Motion that it has updated its best-selling Blackberry smartphone to rival Apple's much-hyped iPhone.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by over seven to three, with 1.05 billion shares changing hands, while on the Nasdaq, advancers topped decliners two to one on volume of 1.77 billion shares.

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