Apple helps S7P 500 to 4 year high

Apple Computer helped the S&P 500 to a 4-year high on its announcement that third-quarter profits had increased fivefold on sales of its iPods. Shares in Apple were up 6.26 percent to $40.75.

Other technology stocks that were helped by the news included Microsoft, which added 1.2 percent to $25.97, Hewlett-Packard with a gain of 0.8 percent to $24.62, and IBM with an advance of 1.2 percent to $82.42. Gateway was down, however, by 5.5 percent to $3.76.

The S&P 500 ended the day up 0.3 percent to 1,226.5, while the Dow Jones Industrial Average gained 0.7 percent to 10,628.89 and the Nasdaq composite closed at a 2005 high of 2,152.82, a gain of 0.4 percent.

In other stocks, Southwest Airlines gained 3.2 percent to $14.42 on the announcement that profits in the second quarter had exceeded forecasts.

Yum! Brands, the owner of KFC and Taco Bell lost 3.6 percent to $49.85 even though it said that second quarter profits were above expectations when it lowered forecasts for the year.

Story link: Apple helps S7P 500 to 4 year high