Wall Street Up on Strong Profit Reports

Stocks Are Moderately Higher on Strong Earnings Reports From Apple, American Express, DuPont


NEW YORK (AP) -- Wall Street advanced Tuesday, with Wall Street growing more upbeat about corporate profits after solid results from blue chip names including Apple Inc., American Express Co. and DuPont Co.

Apple surpassed analysts' expectations with a 67 percent jump in fiscal fourth-quarter profit on strong sales of Macintosh computers, iPods and iPhones. The report renewed confidence in the technology sector, which has outpaced the stock market this year but which also has tended to fall the hardest when investors sell off.

Two components of the Dow Jones industrial average -- American Express, one of the largest credit card companies, and chemicals maker DuPont -- posted better-than-expected profit gains as well.

These results reinvigorated investors after companies posted a string of downbeat results last week, a disappointment that contributed to a 366-point slide in the Dow on Friday. So far, 41 percent of the Standard & Poor's 500 index have reported results -- with 51 percent beating expectations, according to the rating agency.

Meanwhile, energy prices remain high and the dollar continues to weaken against other world currencies. Treasury Secretary Henry Paulson said in a speech Tuesday China must allow its currency, the yuan, to gain in value more quickly, to counter imbalances in the economy and make monetary policy more effective in responding to inflation.

In midmorning trading, the Dow rose 68.04, or 0.50 percent, to 13,635.01.

Broader stock indicators were also higher. The S&P 500 rose 8.72, or 0.58 percent, to 1,515.05; the Nasdaq composite index rose 22.32, or 0.81 percent, to 2,776.25.

The stock market had a fitful recovery Monday after plunging Friday. Wall Street had sold off as worries about the credit market's effect on the economy escalated, when several blue-chip companies offered dimmer-than-anticipated outlooks and S&P downgraded more mortgage-backed securities.

Treasury bonds fell as investors moved back into the stock market. The yield on the 10-year note, which moves inversely to its price, rose to 4.43 percent from 4.40 percent on Monday.

Oil prices rose despite expectations of rising U.S. crude inventories, bolstered by concerns over a continuing buildup of Turkish military forces along the northern Iraqi border. A barrel of light, sweet crude rose 41 cents to $86.43 on the New York Mercantile Exchange.The dollar fell against most other major currencies, while gold rose.

Shares of Apple rose $11.37, or 6.5 percent, $185.73 after the company reported it shipped a record 2.16 million Macs in the quarter, an increase of 34 percent from the same period a year ago. That generated $3.1 billion, or about half of the company's revenues for the quarter.

American Express, one of the nation's biggest credit-card issuers, said late Monday that higher spending by cardholders pushed third-quarter profit up 10 percent. Shares rose $1.53, or 2.7 percent, $58.40.

Chemical maker DuPont posted a larger profit for the third quarter on agricultural and nutritional products in Latin America and the company boosted its full-year outlook. The stock rose $1.03 to $47.60.

AT&T Inc., the nation's largest telecommunications company, reported profit rose 42 percent after its acquisition of BellSouth Corp. Shares rose 21 cents to $41.38.

The Russell 2000 index of smaller companies rose 4.38, or 0.54 percent, at 814.46.

Advancing issues led decliners by a 3-to-1 basis on the New York Stock Exchange, where volume came to 99.3 million shares.


By Joe Bel Bruno, AP Business Writer