US STOCKS-Market gains on strong profits

U.S. stocks rose on Tuesday as strong earnings by Apple Inc. (AAPL.O: Quote, Profile , Research) and American Express Co (AXP.N: Quote, Profile , Research) eased concern about consumer spending and profits.

Shares of Apple, maker of the iPod and iPhone, gained 6.4 percent to $185.50 and gave the Nasdaq its biggest boost, a day after posting results that topped analysts' targets.

United Parcel Service Inc (UPS.N: Quote, Profile , Research), the world's largest package-delivery company, on Tuesday also posted a higher profit. For details, see [ID:nN23247286]

American Express, the third-largest credit card network, late Monday reported results that beat analysts' expectations on average, helped by increased spending among its consumer and corporate clients.

"The earnings picture on balance seems to be positive enough to limit any corrections in the market," said Jim Awad, chairman of W.P. Stewart & Co. Ltd. in New York.

"Technology has been the leader in the market. That's where you have a higher conviction of growth in the U.S. and overseas, so it was important for Apple to at least meet expectations. UPS and American Express added to the confidence."

The Dow Jones industrial average <.DJI> was up 70.81 points, or 0.52 percent, at 13,637.78. The Standard & Poor's 500 Index <.SPX> was up 8.04 points, or 0.53 percent, at 1,514.37. The Nasdaq Composite Index <.IXIC> was up 19.65 points, or 0.71 percent, at 2,773.58.

Third-quarter earnings have been a source of concern for the market, with growth forecast at just 1.8 percent -- the slowest in about five years -- according to Reuters Estimates.

Shares of UPS rose 1.3 percent to $76.05, while American Express was up 2.8 percent to $58.46, lifting the Dow.

In more earnings news, DuPont Co (DD.N: Quote, Profile , Research), one of the the largest U.S. chemical makers, reported a stronger-than-expected quarterly profit. [ID:nN23482548]. Its shares rose 1.7 percent to $47.36.

With no major data due on Tuesday, investors were focused on reports later in the week on housing for insight into the interest-rate outlook. Data on existing home sales is due on Wednesday.