Stocks rose for a third day in four after IBM said sales beat analysts' forecasts and MBNA, the world's second-largest issuer of credit cards, reported a drop in loan losses.

The Dow Jones industrial average rose 51.26, or 0.6 percent, to 8402.36, and the Nasdaq composite index gained 6.06, or 0.4 percent, to 1391.01.

The Standard & Poor's 500-stock index advanced 5.58, or 0.6 percent, to 890.81.

After exchanges closed, Microsoft and Intel announced quarterly earnings that beat forecasts. Both stock rallied in after-hours trading.

IBM added $2.72, to $82.79. Services made up more than half of revenue for the first time as sales rose, to $20.1 billion, beating the average $19.9 billion expected by analysts in a Thomson Financial survey.

MBNA rose $1.60, to $17.62. Credit-card debt that the company classifies as uncollectable fell last month to an annualized 5.39 percent of total debt from 5.48 percent in February, according to a filing with the Securities and Exchange Commission.

Rival Capital One Financial jumped $2.33, to $37.49.

MGIC Investment gained $3.17, to $43.90. The mortgage insurer earned $1.42 in the first quarter, beating the average analyst forecast of $1.35 per share.

Indexes opened lower after the Federal Reserve Bank said industrial production dropped for a second straight month in March. A separate factory index from the Federal Reserve Bank of New York showed manufacturing in the state contracted by the most since October 2001.

General Motors lost 95 cents, to $35.17. The world's largest automaker said it is "less certain" whether 2003 profit will meet its $4.80-a-share forecast.

Johnson & Johnson fell $1.80, to $55.98, after sales of the company's biggest-selling medicine, the anemia drug Procrit, increased less than 1 percent last quarter.

HCA, the biggest U.S. hospital chain, plunged $7.17, to $28.90. First-quarter profit rose less than forecast because admissions to its hospitals fell. Profit excluding gains and some costs was 81 to 83 cents per share.

American Airlines owner AMR jumped 32 cents, to $3.40, before trading in its shares was halted pending the outcome of the flight attendants union's vote on concessions needed to avert bankruptcy. Unions representing pilots, mechanics and other ground workers accepted the airline's cuts.

Other Indicators

* The New York Stock Exchange composite index rose 38.97, to 4995.25; the American Stock Exchange index rose 1.76, to 839.84; and the Russell 2000 index of smaller-company stocks rose 1.99, to 379.60.

* Advancing issues outnumbered declining ones by 2 to 1 on the NYSE, where trading volume rose to 1.41 billion shares, from 1.1 billion on Monday. On the Nasdaq Stock Market, advancers outnumbered decliners by 9 to 7 and volume totaled 1.25 billion, up from 1.14 billion.

* The price of the Treasury's 10-year note rose $2.50 per $1,000 invested, and its yield fell to 3.99 percent, from 4.02 percent on Monday.

* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 120.14 yen, down from 120.30 late Monday, and a euro bought $1.0815, up from $1.0775.

* Light, sweet crude oil for May delivery settled at $29.29, up 66 cents, on the New York Mercantile Exchange.

* Gold for current delivery rose to $324.90 a troy ounce, from $324.20 on Monday, on the New York Mercantile Exchange's Commodity Exchange.