U.S. stocks rose on Thursday as a gain of more than $1 a barrel in oil prices boosted shares of energy companies, including Exxon Mobil Corp., offsetting disappointment over profit reports from Bear Stearns and Goldman Sachs.
Exxon's stock led the major advancers in both the Dow and the S&P 500 as U.S. crude for July delivery rose $1.44, or 2.2 percent, to $67.70 a barrel on fresh supply concerns.
Investors also drew support from a government report that showed the core reading in the May U.S. Producer Price Index, minus food and energy costs, was in line with expectations.
The Dow Jones industrial average was up 72.92 points, or 0.54 percent, at 13,555.27. The Standard & Poor's 500 Index was up 7.65 points, or 0.50 percent, at 1,523.32. The Nasdaq Composite Index was up 16.10 points, or 0.62 percent, at 2,598.41.
Even though the data also showed an unexpectedly strong reading in headline PPI, analysts said it served to underscore expectations of continued growth in the economy despite worries about the housing market.
Exxon shares rose 1.7 percent to $84.78 on the New York Stock Exchange. Investors also snapped up shares of transportation companies and big manufacturers, among the biggest beneficiaries of a growing economy.
On the Nasdaq, Apple Inc. contributed the most its gain. Apple's stock rose 1 percent to $118.69 on optimism about the company's upcoming iPhone, which will be sold by AT&T.
On the downside, Goldman Sachs fell in sync with rival Bear Stearns. Goldman shares dropped 3.1 percent to $226.36 as the margin of the company's quarterly earnings outperformance disappointed investors. Bear Stearns shares fell 1.8 percent to $146.86. (Additional reporting by Caroline Valetkevitch)