Upbeat reports lift
S&P to 4-year high

NEW YORK » A trifecta of good news -- positive economic data, strong earnings and a sharp drop in oil prices -- sent stocks sharply higher yesterday and lifted the Standard & Poor's 500 index to a four-year high. The Nasdaq composite index also moved into positive territory for 2005.

Wall Street was encouraged by the latest reading of the U.S. Labor Department's Consumer Price Index, which measures how much consumers pay at the retail level. The CPI was unexpectedly flat for June, while "core" CPI -- with food and fuel costs removed -- edged just 0.1 percent higher.

Record earnings from Apple Computer Inc. also cheered investors, while a sharp 1.7 percent jump in retail sales for June assuaged fears that high oil prices would crimp consumer spending.

The S&P rose 3.21, or 0.26 percent, to 1,226.50, its best showing since closing at 1,234.45 on July 3, 2001.

Other stock indicators also advanced. The Nasdaq composite index climbed 8.71, or 0.41 percent, to 2,152.82 -- its best close since Dec. 31 -- while the Dow Jones industrial average was up 71.50, or 0.68 percent, at 10,628.89, its highest level since March 16.

Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where consolidated volume came to 2.42 billion shares, compared to 1.88 billion Wednesday.

The NYSE composite index edged up 2.57, or .03 percent, to 7,403.40. The American Stock Exchange composite index fell 24.53, or 1.57 percent, to 1,537.84. And the Russell 2000 index was down 4.63, or 0.69 percent, at 663.02.

Bonds moved lower as stocks rose, with the yield on the 10-year Treasury note rising to 4.18 percent from 4.16 percent late Wednesday.

Crude oil futures dropped sharply after the International Energy Agency predicted global demand would ease. A barrel of light crude settled at $57.80, down $2.21, on the New York Mercantile Exchange.

Retail stocks pushed higher on the positive Commerce Department sales report. Lowe's Companies Inc. hit an all-time high earlier in the session and was up 70 cents at $62.90. Target Corp., which also reached a historic high, gained 52 cents to $58.39, and Best Buy Inc. added 60 cents to $75 after surpassing its all-time high in morning trading.

Apple's earnings boosted the overall tech sector as the computer and electronics maker credited ongoing demand for the iPod music player for its record profits. While Apple took the unusual step of warning that its third-quarter profits would fall below expectations, investors weren't dissuaded. Apple stock surged $2.40 to $40.75.