Stocks rose yesterday, pushing the Standard & Poor's 500-stock index to a four-month high, as oil prices fell and investors speculated that second-quarter earnings will exceed forecasts.
"People are really psyched about earnings season and, unlike past quarters, they're actually bidding stocks higher in anticipation of a strong earnings season," said Brian Slater, who helps oversee $500 million at Condor Capital Management in Martinsville, N.J.
The S&P 500 erased the last of its losses for the year, gaining 7.58, or 0.6 percent, to 1219.44. The benchmark hasn't been that high since March 7 and is up 0.6 percent in 2005. The Dow Jones industrial average rallied 70.58, or 0.7 percent, to 10,519.72. The Nasdaq composite index rose 22.55, or 1.1 percent, to 2135.43, the highest in more than six months.
Crude oil fell for a third day after Hurricane Dennis missed the oil rigs and platforms concentrated off the Texas and Louisiana coasts, easing concern about supply disruptions.
McKesson gained 66 cents, to $45.21. The biggest U.S. drug wholesaler agreed to buy D&K Healthcare Resources for $14.50 a share in cash, or $206.8 million, adding distribution to independent and regional pharmacies in the Midwest and the South. D&K soared $5.80, or 68 percent, to $14.30.
Mylan Laboratories rose 26 cents, to $19.67. The company, which is fighting a $5.39 billion takeover bid by investor Carl Icahn, said that, excluding some items, profit last quarter was at least 24 cents a share. Analysts had expected 19 cents.
EBay jumped $1.05, to $35.55. The largest Web marketplace added a Chinese site for its PayPal payments service to boost its auctions business in the world's most populous nation.
DreamWorks Animation SKG plunged $3.54, or 13.2 percent, to $23.27. The film studio run by Jeffrey Katzenberg lowered its 2005 profit forecast and called off a planned stock sale after purchases of home videos dried up. The company also said regulators are probing last quarter's earnings report.
Pixar slid 25 cents, to $42.75. The computer animation film studio last month slashed its profit forecast, also on disappointing home-video sales.
New York Stock Exchange composite index rose 51.92, to 7382.50.
American Stock Exchange index rose 11.35, to 1572.36.
Russell 2000 index of smaller-company stocks rose 9.60, to 671.74.
NYSE: 1.84 billion shares, down from 1.91 billion on Friday. Advancers outnumbered decliners 5 to 2.
Nasdaq: 1.77 billion shares, up from 1.67 billion. Advancers outnumbered decliners 7 to 3.
Crude oil for August delivery: $58.92, down 71 cents.
Gold for current delivery: $425.50 a troy ounce, up from $422.90 on Friday.