US stocks climbed on Tuesday, bolstered by strong results from companies like Corning Inc and moderately upbeat comments from US Federal Reserve Chairman Alan Greenspan.
Strength in Internet stocks, such as Yahoo Inc and online marketplace operator eBay Inc helped boost the technology-packed Nasdaq Composite Index and the broad Standard & Poor's 500 index.
Both indexes racked up their biggest percentage gains in a month amid mostly sideways trading this summer. The blue chip Dow ended higher for the first time in five sessions.
In remarks before the Senate Banking Committee, Greenspan said the economy has entered a sustainable expansion that is creating some price pressures, but inflation does not now pose a major threat.
The Dow Jones industrial average rose 55.01 points, or 0.54 percent, to 10,149.07.
The Standard & Poor's 500 Index gained 7.77 points, or 0.71 percent, to 1,108.67, and the technology-laced Nasdaq Composite Index rose 33.24 points, or 1.76 percent, to 1,917.07.
Trading was active, with about 1.4 billion shares traded on the New York Stock Exchange, and 1.6 billion shares traded on Nasdaq.
Corning, a maker of fiber-optic cable, reported a profit compared with a year-earlier loss on stronger demand for its liquid crystal display panels. It jumped $1.42, or 13 percent, to $12.69, a day after posting its earnings. It was one of the most actively traded stocks on the NYSE.
Dow component Altria Group Inc, whose products range from Marlboro cigarettes to Kraft macaroni and cheese, said second-quarter profit rose, boosted by the weaker dollar and a lower tax rate. Its shares slipped 5 cents to $48.78.
RadioShack Corp, the third-largest US electronics chain, reported a sharp rise in quarterly profit, as strong wireless sales offset sluggish growth across other key product segments. It surged $1.94, or 7 percent, to $29.02.
Motorola Inc rose 65 cents, or 4 percent, to $16.09 and was the most actively traded stock on the NYSE ahead of its earnings report. After the close, Motorola Inc posted a quarterly net loss due to the spin-off of its chip unit but said it stole share from its rivals in the growing global cell phone market.
Yahoo rose $1.28, or 5 percent, to $29.39, and eBay, which is due to report earnings after Wednesday's close, rose $1.45, or 2 percent, to $79.95.
Ford Motor Co fell after it posted second-quarter earnings that more than doubled, but the gains were driven by strength in its finance arm, which could be difficult to maintain as interest rates rise.
Ford dropped 38 cents, or 3 percent, to $14.60.