US stocks shifted gears and climbed at midday on Tuesday as investors bought Dow industrials like Coca-Cola and other companies with steady earnings, while a drop in oil prices helped ease concerns about inflation.
Coca-Cola Co was the biggest contributor to gains in the blue chip Dow average and helped lift the Standard & Poor's 500 after Deutsche Bank upgraded the soft drink maker's stock to a "buy" from a "hold." Energy shares slid as US crude oil futures fell more than $2 to trade below $132 a barrel at midday, down from last Friday's record above $139. The S&P index of energy shares was down 2.6 percent.
The Nasdaq was boosted slightly by Apple Inc, whose stock gained 2.6 percent to $186.36 a day after the introduction of a faster iPhone. Earlier Tuesday, Lehman Brothers and Citigroup raised their price targets on the stock. The Dow Jones industrial average rose 78.89 points, or 0.64 percent, to 12,359.21. The Standard & Poor's 500 Index advanced 4.46 points, or 0.33 percent, to 1,366.22. The Nasdaq Composite Index added 5.22 points, or 0.21 percent, to 2,464.68.