Earnings boost stocks

NEW YORK » Wall Street regained its composure yesterday, marching higher after companies including Merrill Lynch & Co. and International Business Machines Corp. beat earnings expectations.

The Nasdaq composite index hit a high for the year as the market anticipated after-the-close earnings reports from Yahoo Inc. and Juniper Networks Inc. But it was the earnings reports from IBM and Merrill that reassured investors yesterday after disappointing earnings from Citigroup Inc. on Monday halted three weeks of stock market gains.

Brokerage Merrill's earnings, released before trading opened, beat analysts' estimates by 6 cents a share. IBM's results, released after the close of regular trading Monday, also beat expectations and marked the company's return to strength after a dismal first quarter. IBM's stock soared, rising $1.92 to $83.73. Merrill rose $1.32 to $57.99.

Stocks maintained their momentum on the expectation of strong earnings reports by Intel Corp., Amgen Inc. and Motorola Inc., which reported after the close of regular trading.

The tech-dominated Nasdaq rose 28.31, or 1.32 percent, to 2,173.18, while the Dow Jones industrial average rose 71.57, or 0.68 percent, to 10,646.56 The Dow fell 65.84 Monday.

The Standard & Poor's 500 index rose 8.22, or 0.67 percent, to 1,229.35.

Bonds rose, with the yield on the 10-year Treasury note falling to 4.19 percent from 4.22 percent late Monday.

In the closely watched housing market, Commerce Department data showed construction of new homes and apartments was flat in June, providing an indication that the red-hot housing market may be cooling off. June's performance was far below the 1.1 percent increase private economists had been expecting.

In earnings news, biotechnology firm Amgen's profits rose sharply, beating analysts' expectations by 16 cents a share. Amgen closed up 2 cents, at $70.52, in regular trading, then rose $5.89 to $76.41 in extended hours after its earnings report.

Revenues at Yahoo rose 51 percent for the quarter and its profit gained 43 percent. Its results, excluding a one-time $563 million gain on an asset sale, matched analysts' estimates. The stock rose $1.15, to $37.73 in regular trading, then dropped $3.77, to $33.96, in extended trading.

Mobile phone maker Motorola reported record second-quarter sales and earnings. Motorola gained 39 cents, to $19.85 in regular trading, then fell 19 cents to $19.66 in extended trading.

Beleaguered auto maker Ford Motor Co. beat analysts' estimates, even as its earnings fell 19 percent from the year-ago quarter. It affirmed its guidance for the full year.