U.S. Stocks Advance as Microsoft, Apple Allay Recession Concern

U.S. stocks advanced for the sixth time in seven weeks after earnings from Microsoft Corp. and Apple Inc. bolstered speculation that the economy is growing enough to sustain profits.

Microsoft shares soared to the highest since July 2001 after Windows Vista and the ``Halo 3'' video game helped the world's largest software maker report higher-than-expected sales. Apple gained after profit increased more than analysts estimated, propelled by record Macintosh computer sales and rising demand for iPods and iPhones.

``The earnings were very, very good,'' said Richard Sichel, who helps manage about $1.5 billion as chief investment officer at Philadelphia Trust Co. in Philadelphia. ``Technology earnings have offset, to some extent, the financial worries that continue.''

Computer-related companies in the Standard & Poor's 500 Index increased profit by 11 percent last quarter, according to a Bloomberg analysis of reported results. Analysts forecast 9 percent growth three weeks ago. S&P 500 members that have released results so far posted a 0.8 percent decline in profit.

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