Most U.S. Stocks Rise for Third Day; Lowe's, Freeport Advance

Aug. 20 (Bloomberg) -- Retail, mining, and railroad shares carried most U.S. stocks to their third straight advance on growing confidence the Federal Reserve will assuage turmoil in credit markets and keep the economy growing.
Lowe's Cos., the second-largest U.S. home-improvement retailer, climbed the most in four years after its profit topped analysts' estimates. Freeport-McMoRan Copper & Gold Inc., the world's second-biggest copper producer, gained following a rally in metal prices. Union Pacific Corp., the largest U.S. railroad, posted its biggest one-day increase since March 2006 after UBS AG said it may be able to raise prices.
The Dow Jones Industrial Average rose 42.27, or 0.3 percent, to 13,121.35. The Nasdaq Composite Index added 3.56, or 0.1 percent, to 2,508.59. The S&P 500 slipped 0.39, or 0.03 percent, to 1,445.55. More than seven stocks climbed for every six that fell on the New York Stock Exchange.
``Investors are relieved that the Fed's becoming more proactive in dealing with the credit crisis,'' said Bruce Bent, who manages about $65 billion in assets as chairman of Reserve Funds in New York.
Today's advance added to the S&P 500's biggest rally in four years after the Fed lowered its discount rate on Aug. 17 and said it will ``act as needed'' to keep credit market losses from spreading. Yields on U.S. Treasury bills fell the most in two decades on speculation the Fed will cut its benchmark rate next month.
Lowe's
Lowe's rose $1.63 to $28.50 for the top gain in the S&P 500. The company added market share with better customer-service ratings and newer stores with brighter lighting and wider aisles. Second-quarter net income climbed 9 percent to 67 cents a share. Analysts predicted profit of 61 cents a share, the average of 17 projections compiled by Bloomberg.
Home Depot Inc., Lowe's larger rival, climbed 48 cents to $33.79.
Earnings at S&P 500 companies increased 10.7 percent on average in the second quarter, more than twice the estimate of analysts surveyed by Bloomberg at the beginning of the reporting period last month.
``The earnings scenario this quarter has been quite positive, but it's being completely overlooked by investors,'' said Eric Thorne, who manages $2.4 billion with Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania. ``There's some opportunity there for investors. The fundamentals are being overlooked.''
Freeport-McMoran advanced $3.06, or 4 percent, to $79.96 after copper futures gained for a second session, rebounding from a 6.1 percent drop last week.