U.S. stocks rose Tuesday, rebounding from 2004 lows, after retailers including Home Depot, J.C. Penney and Staples reported higher-than-expected earnings.

Computer-related shares, the second-worst-performing industry group of 10 in the Standard & Poor's 500-stock index this year, accounted for one-fourth of the benchmark's advance. On Monday, stocks slumped on concern rising oil prices and the prospect of higher interest rates will slow economic growth.

"The momentum is quite strong for corporate profits," said Randy Bateman, who oversees $10 billion as chief investment officer at Huntington Capital in Columbus, Ohio. "There are a lot of things that will mitigate the negative aspects of interest rate increases."

The S&P 500 rose 7.39, or 0.7 percent, to 1091.49. The Dow Jones industrial average increased 61.60, or 0.6 percent, to 9968.51. The Nasdaq composite index climbed 21.18, or 1.1 percent, to 1897.82.

An economic report Tuesday showed that signs of economic expansion are bolstering housing demand even as mortgage rates rise from last year's record lows.

Home Depot was the biggest contributor to the Dow average's advance. The stock rose $1.15, to $34.62. Profit was 49 cents a share, beating the 43-cent average forecast in a survey of analysts polled by Thomson Financial.

J.C. Penney, the No. 2 U.S. department-store chain, climbed $2.11, to $33.71. Excluding a one-time charge, profit increased to 38 cents a share. On that basis, the retailer was expected to have profit of 34 cents, according to Thomson.

Staples, the biggest office-supplies retailer, jumped $1.97, to $26.39. First-quarter profit increased fivefold to 25 cents a share as more spending by businesses helped boost sales.

Intel, the world's largest maker of semiconductors, rose 31 cents, to $27.15. Cypress Semiconductor, which makes computer chips for video game consoles and mobile phones, gained 57 cents, to $13.82. Hewlett-Packard, the world's No. 2 personal-computer maker, rose 33 cents, to $19.83.

Energy stocks declined as crude oil fell on expectations a government report tomorrow will show U.S. fuel inventories rose last week. OPEC said it's ready to make more oil available to lower near-record prices. Exxon Mobil fell 36 cents, to $42.69. Apache, a Houston-based oil and natural-gas producer, fell $1.73, to $39.56.

Other Indicators

* The New York Stock Exchange composite index rose 45.34, to 6276.53; the American Stock Exchange index fell 6.24, to 1163.61; and the Russell 2000 index of smaller-company stocks rose 7.22, to 542.56.

* Advancing issues outnumbered declining ones by 13 to 5 on the NYSE, where trading volume fell to 1.35 billion shares, from 1.42 billion on Monday. On the Nasdaq Stock Market, advancers outnumbered decliners by 7 to 4 and volume totaled 1.41 billion, down from 1.51 billion.

* The price of the Treasury's 10-year note fell $3.44 per $1,000 invested, and its yield rose to 4.74 percent, from 4.69 percent on Monday.

* The dollar fell against the Japanese yen and rose against the euro. In late New York trading, a dollar bought 114.11 yen, down from 114.33 late Monday, and a euro bought $1.1947, down from $1.2021.

* Light, sweet crude oil for June delivery settled at $40.54, down $1.01, on the New York Mercantile Exchange.

* Gold for current delivery fell to $375.80 a troy ounce, from $379.50 on Monday, on the New York Mercantile Exchange's Commodity Exchange.