New York - Stocks rose on on Tuesday in a late rally fed by growing optimism about quarterly results from International Business Machines Corporation (IBM) and Intel Corporation, due after the close.
For most of the session, stocks weaved above and below unchanged, as investors awaited clues about the health of corporate America from the two tech giants.
The Nasdaq composite finished just under its high of the day, rising 25,76 points, or 1,52 percent, to 1 722.07, according to the latest data, while the Dow Jones Industrial average rose 36,61 points, or 0,39 percent, to 9 384.23.
The benchmark Standard & Poor's 500 index rose 7,57 points, or 0,69 percent, to 1 097.55. For the Nasdaq, it was the highest close since September 7, the Friday before the September 11 air attacks on the World Trade Centre and Pentagon.
"It's probably speculation that the Intel and IBM numbers will be OK. Expectations are so low that any good news is going to spark a rally," said Uri Landesman, chief investment officer at AFA Management Partners.
The market was also dogged by anthrax anxiety now rippling across the globe. Also, the US-led bombings on Afghanistan went on for a tenth day in retaliation for the September 11 attacks.
A report surfaced that 12 staff at the London Stock Exchange were taken to hospital for medical tests after a suspect package was received at the exchange. The news weighed on US stocks in early trading.
Dow component United Technologies Corporation, whose products range from military aircraft to elevators, posted a 14 percent rise in profits and its stock rose 98 cents to $54.
Johnson & Johnson, another Dow stock, climbed $1,05 to $56,77 on a rise of 16 percent in profits.
IBM slipped 15 cents to $101,85. Wall Street house Merrill Lynch cuts its fourth-quarter and 2002 earnings per share forecasts estimate for IBM ahead of its earnings.
Intel rose to $24,96, up 58 cents, helping both the Dow and the Nasdaq. The Philadelphia Stock Exchange semi-conductor index gained 2,45 percent, the bulk of the rise coming in the last 90 minutes.