JPMorgan adds to cheery mood in US

US stocks rallied for a fourth day yesterday after JPMorgan&rsquo;s strong results fed growing optimism about the quarterly earnings season and technology shares rose in anticipation of more good news.<br /><br />Gains in <strong>International Business Machines</strong> helped the market shake off its earlier malaise. The broad S&amp;P 500 extended the week&rsquo;s gains to tally its best four days since March as stocks recovered from 12-year lows.<br /><br /><strong>IBM</strong> provided the Dow&rsquo;s biggest boost ahead of earnings that beat expectations after the market closed. The bellwether also raised its outlook for the full year, sending its shares up 1.6 percent to $112.41 in extended trade. IBM closed the regular session up 3.2 per cent at $110.64.<br /><br />&ldquo;As the market rallies, implicit in that is the expectation that we&rsquo;ll continue to see a recovery in corporate profits,&rdquo; said Dean Curnutt, president of Macro Risk Advisors in New York.<br /><br /><strong>JPMorgan Chase</strong> continued the week&rsquo;s streak of positive results, posting a strong quarterly profit, but warning of deteriorating consumer credit. The bank&rsquo;s stock was kept under water for most of the day, edging down 0.4 per cent to $36.13 on the New York Stock Exchange.<br /><br />Much better than expected results from <strong>Goldman Sachs</strong> and <strong>Intel</strong> set the tone early in the week amid expectations of a dire second quarter marked by falling revenues and cost cuts.<br /><br />The Dow Jones industrial average rose 95.61 points, or 1.11 per cent, to 8,711.82.<br /><br />The Standard &amp; Poor&rsquo;s 500 index gained 8.06 points, or 0.86 per cent, to finish at 940.74, and has climbed 7 per cent for the week so far. The Nasdaq Composite index advanced 22.13 points, or 1.19 per cent, to 1,885.03. Results from Web search leader <strong>Google</strong> also came in better than expected after the bell, but the stock was off 2.4 per cent at $432.19 in extended trade. During the regular session, Google had recovered from earlier losses to gain 1 per cent and close at $442.60 on Nasdaq.<br /><br />Comments from leading economist Nouriel Roubini further boosted sentiment after he said the worst is past in terms of economic and financial conditions.