US stocks rose, led by Exxon Mobil Corp and General Electric Co. The Dow Jones Industrial Average finished a second week of gains as investors sought companies with records of consistent profitability, including Coca-Cola Co and Johnson & Johnson.
"People want to be invested, but they want to be invested safely," said James Awad, who manages US$750 million as chairman of Awad Asset Management. "They don't want to be disappointed by earnings problems, accounting problems or balance-sheet problems, so they're gravitating to more defensive stocks."
The Dow advanced 133.47, or 1.4 percent, to 9968.15 and briefly climbed above 10,000. The Standard & Poor's 500 Index gained 8.89, or 0.8 percent, to 1,089.84. The NASDAQ Composite Index rose 8.30, or 0.5 percent, to 1,724.54.
Today's gains pared the NASDAQ and S&P 500's declines for the week. The NASDAQ fell 4.5 percent and has now dropped four straight weeks, the longest streak of losses since March. The S&P 500 lost 1.3 percent. The Dow rose 0.7 percent for the week, extending last week's 1.6 percent advance.
Almost 1.4 billion shares traded on the New York Stock Exchange, 4.2 percent more than the three-month daily average.
More than three stocks rose for every two that fell on the Big Board, while five advanced for every four that declined on the NASDAQ Stock Market.
Investors are avoiding companies with questions about their accounting after the collapse of Enron Corp revealed the energy trader had hidden losses and inflated profits.
Instead, they're buying shares of companies including GE, whose earnings have risen between 10 percent and 42 percent the past eight years.
Johnson & Johnson's profits have risen each of the past 10 years, averaging an almost 14 percent annual gain in earnings per share.
"Big and safe and dull and reliable will work," said Kevin Bannon, chief investment officer at BNY Asset Management, which oversees US$65 billion. He's been adding to holdings in Colgate-Palmolive Co, Johnson & Johnson, United Parcel Service Inc and Home Depot Inc.
"They're not inexpensive," Bannon said, "but companies that can meet expectations will probably be rewarded with above-average multiples."
GE, the largest company by market value, rose US$0.57 to US$38.09; Coca-Cola, the biggest soft-drink maker, climbed US$1.30 to US$47.30; and medical-devices maker Johnson & Johnson advanced US$1.40 to US$59.40.
Oil shares gained with the price of crude. Norway's oil minister said his country will maintain production limits through June as part of an OPEC strategy to bolster prices.
Exxon Mobil climbed US$1.57 to US$40.72, Amerada Hess Corp rose US$2.24 to US$68.87 and ChevronTexaco Corp advanced US$1.59 to US$83.70.
Semiconductor shares gained after Xilinx Inc increased its revenue forecast for the fourth quarter. The biggest maker of programmable chips advanced US$0.92 to US$34.93.
Maxim Integrated Products Inc jumped US$2.05 to US$49.03.
Investors have a "desire to go into areas that are sensitive to" an improving economy, said Dan Rivera, head of equities for American Express Financial Advisors in Minneapolis, which manages about US$80 billion in stocks. Chip companies are expected to be one of the first groups to benefit as the economy grows.
TRW Inc surged US$10.50 to US$50.30 after Northrop Grumman Corp made an unsolicited offer of about US$10.8 billion in stock and assumed debt for the defense contractor. Northrop Grumman, maker of the Global Hawk drone aircraft used by the US military in Afghanistan, dropped US$7.85, or 9.8 percent, to US$109.95.
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