U.S. Stocks Rise, Led by Energy, Technology Shares; Exxon Gains

Nov. 20 -- U.S. stocks rose, rebounding from three-month lows, after a gain in the price of oil boosted energy companies and Credit Suisse Group said shares of Google Inc. may reach $900 next year.

Exxon Mobil Corp. and Chevron Corp. both climbed the most in three months. Google rallied after Credit Suisse said the most-popular search engine will expand its share of the mobile advertising market. Benchmark indexes gained even after Freddie Mac said it may cut its dividend and reported a loss that was three times what some analysts had estimated.

The Standard & Poor's 500 Index added 16.56, or 1.2 percent, to 1,449.83 at 11:13 a.m. in New York. The Dow Jones Industrial Average rose 125.27, or 1 percent, to 13,083.71. The Nasdaq Composite Index increased 40.24, or 1.6 percent, to 2,633.62. About five stocks gained for every two that fell on the New York Stock Exchange.

``The market seems to be looking past some of the difficulties,'' said Michael Vogelzang, who helps manage $2.2 billion as chief investment officer at Boston Advisors. ``You're getting a very strong, positive rally even while financials are continuing to struggle.''

Financial companies were the only group to drop today among 10 industries in the S&P 500 after Freddie Mac said rising home foreclosures sliced the value of its mortgage holdings. Investors also were awaiting minutes due later today from the Federal Reserve's Oct. 31 meeting for further clues on the economic outlook.

Energy Rally

Exxon Mobil Corp. climbed $3.38 to $87.49. UBS AG raised its recommendation on shares of the world's biggest oil company to ``buy'' from ``neutral'' and lifted its price estimate to $96 from $92. Chevron Corp., the second-largest U.S. oil company, added $2.75 to $87.78.

Crude oil rose for a third day after the dollar touched a record low against the euro, increasing demand for commodities. The dollar's 11 percent slide this year has made oil, metals and other commodities denominated in the U.S. currency cheaper for foreign investors.

Google Inc. surged $25.04, or 4 percent, to $650.89. The shares may climb to $900 in the next year, according to Credit Suisse Group, which said the company will expand its share of the market for mobile devices and Web display advertising.

Housing Starts

Countrywide Financial Corp. rose 26 cents, or 2.5 percent, to $10.83 and a gauge of homebuilders advanced for the first time in five days after the Commerce Department reported housing starts reached a 1.23 million annual rate last month, up 3 percent from September. Increased work on condominiums offset the weakest construction of single-family homes in 16 years. Economists had expected a pace of 1.17 million.

D.R. Horton Inc. rose 59 cents to $11.84. The second- largest U.S. homebuilder reported a fiscal fourth-quarter net loss of 16 cents a share, narrower than the 85-cent average estimate of analysts surveyed by Bloomberg.

Hewlett-Packard Co. gained 33 cents to $49.77. Fourth- quarter profit, excluding some costs, was 86 cents a share, exceeding analysts' estimates for the 11th straight quarter. The company said it plans to buy back as much as $8 billion in shares and forecast sales and profit that beat analysts' estimates.

Nordstrom Inc., the owner of 101 department stores in the U.S., said third-quarter profit excluding some items was 59 cents a share. That exceeded the average of analysts' estimates by 7 cents, according to a Bloomberg survey. Its shares rallied $3.13 to $33.65.

Freddie Mac

Freddie Mac, the second-largest source of money for U.S. home loans, dropped $9.60 to $27.90. Its net loss widened to $3.29 a share from $1.17 a share a year earlier. The company said it may cut its dividend in half and has hired Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. to help it raise capital.

Medtronic Inc. added $2.51 to $47.76. The largest maker of heart-rhythm devices reported fiscal second-quarter sales of $3.12 billion, topping the $3.09 billion average estimate of 22 analysts compiled by Bloomberg.

Pfizer Inc. increased 12 cents to $22.83. The company may be able to eliminate some lawsuits over the safety of its Celebrex painkiller after a U.S. federal judge ruled that patients hadn't delivered evidence about the side effects on one of the doses.

Fed Watch

Traders pared bets of a quarter-percentage point rate cut to 4.25 percent at the Fed's Dec. 11 policy meeting. Odds fell to 86 percent, down from 96 percent yesterday, futures contracts show.

Target Corp. dropped 37 cents to $53.53. The second-largest U.S. discount chain said quarterly profit fell, trailing analysts' estimates, after consumers grappling with higher housing and gasoline expenses cut back on spending.

U.S. stock indexes declined to three-month lows yesterday after Goldman, Sachs & Co. recommended investors sell shares of Citigroup Inc. and Lowe's Cos. cut its earnings forecast for the second time in two months.