Stocks rose yesterday as oil prices fell from historic highs, spurring optimism that rising energy costs won't derail corporate profit growth.
"The market's sort of recognizing the relief in oil prices," said Caryn Zweig, who helps manage $500 million at Abner, Herrman & Brock in Jersey City, N.J. "The economy is showing great strength and the consumer is showing great endurance, regardless of the price of oil."
Technology shares gained after Agilent Technologies said it will sell its semiconductor unit and a Piper Jaffray & Co. analyst named Apple Computer his top pick for 2005.
The Standard & Poor's 500-stock index gained 3.48, or 0.3 percent, to 1233.87, with computer-related shares making up almost a third of its advance. The Dow Jones industrial average rose 34.07, or 0.3 percent, to 10,634.38. The Nasdaq composite index increased 10.14, or 0.5 percent, to 2167.04.
Benchmarks rebounded from earlier losses after oil fell for the first session in four, on speculation that increased production will help refineries meet demand for gasoline and other fuels.
Apple rallied $1.58, to $47.68. Piper Jaffray analyst Gene Munster named the maker of Macintosh personal computers and iPod music players the firm's "large-cap top pick" for the rest of 2005.
Intel, the No. 1 computer-chip maker, rose 22 cents, to $26.53.
ConocoPhillips, the largest U.S. oil refiner, fell 78 cents, to $65.84, as energy shares dropped with the price of oil. Schlumberger, an oil field service company, retreated 85 cents, to $85.17.
Lowe's, the world's second-largest home-improvement retailer, gained 70 cents, to $65.89; second-quarter earnings of $1.05 a share surpassed analysts' estimates. Bigger rival Home Depot rose 33 cents, to $41.61.
Procter & Gamble advanced 63 cents, to $54.18. The largest U.S. household-goods maker said regulators approved combining its Actonel drug in a packet with calcium supplements to fight osteoporosis, a bone-thinning disease that strikes women after menopause.
New York Stock Exchange composite index rose 6.45, to 7564.78.
American Stock Exchange index fell 3.93, to 1633.40.
Russell 2000 index of smaller-company stocks rose 5.64, to 665.64.
NYSE: 1.56 billion shares, down from 1.71 billion on Friday. Advancers outnumbered decliners 7 to 5.
Nasdaq: 1.37 billion shares, down from 1.64 billion. Advancers outnumbered decliners 4 to 3.
Crude oil for September delivery: $66.27, down 59 cents.
Gold for current delivery: $442.20 a troy ounce, down from $445.90 on Friday.