U.S. Stocks rally on Strong Earnings Expectations

U.S. stocks rallied after investors back from summer vacation snapped up technology and energy shares on speculation prices haven't caught up with earnings growth.

The S&P 500 added 10.12, or 0.7 percent, to 1,484.11 as of 11:44 a.m. in New York. The Nasdaq Composite Index gained 28.57, or 1.1 percent, to 2,624.93. The Dow Jones Industrial Average climbed 37.31, or 0.3 percent, to 13,395.05, held back by a 4.3 percent decline in shares of Home Depot Inc. 

Computer company profits are forecast to increase 23 percent next year, the most of any industry, according to the average of estimates compiled by Bloomberg. Energy producers in the Standard & Poor's 500 Index currently trade for 12.6 times earnings, 39 percent below the average for this decade, Bloomberg data show.

Apple advanced to a one-month high after Piper Jaffray & Co. said sales of Macintosh computers are exceeding its estimates. Exxon Mobil Corp., the biggest oil producer, climbed to the highest in three weeks as crude gained.

U.S. Stocks rally on Strong Earnings Expectations

TradingEconomics.com, Bloomberg
9/4/2007 9:49:47 AM