(Bloomberg News circulated the following on August 21.)
NEW YORK — Retail, mining, and railroad shares carried most stocks to their third straight advance Monday on growing confidence the Federal Reserve will assuage turmoil in credit markets and keep the economy growing.
Lowe’s Cos. climbed the most in four years after its profit topped analysts’ estimates. Freeport-McMoRan Copper & Gold Inc. gained after 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.
Monday’s advance came on the heels of the Fed lowering its discount rate on Friday. 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 rose $1.63 to $28.50 for the top gain in the S&P 500. Home Depot Inc., Lowe’s larger rival, climbed 48 cents to $33.79.
Freeport-McMoran advanced $3.06, or 4 percent, to $79.96 after copper futures gained for a second session.
Union Pacific Corp. jumped $5.80, or 5.5 percent, to $111.73.
Alcoa Inc., the world’s second-largest aluminum producer, helped lead an advance among companies whose earnings are tied to economic growth. It climbed $1.03 to $34.32, the biggest gain in the Dow. Honeywell International Inc. climbed $1.36 to $55.82 and Caterpillar Inc. jumped $1.41 to $74.05.
Research In Motion Ltd. added $15.47, or 7 percent, to $235.99. Goldman, Sachs & Co. boosted its subscriber estimates for the BlackBerry e-mail device.
In economic data, the index of leading U.S. economic indicators rebounded in July, propelled by gains in consumer confidence and stock prices.
KKR Financial Holdings LLC gained $1.24, or 8.6 percent, to $15.64. Thornburg Mortgage Inc. sank $1.54, or 10 percent, to $13.50.
Citigroup Inc. declined 42 cents to $48.39. Bank of America Corp. slipped 41 cents to $51.35. JPMorgan Chase & Co. lost 52 cents to $46.49.
McGraw-Hill Cos. fell $1.41, or 2.9 percent, to a 19-month low of $47.73. JPMorgan cut its rating, saying U.S. credit-market losses may cut revenue at the Standard & Poor’s unit, which generates almost half the company’s sales.
Moody’s Corp., the oldest credit-rating company, fell $4.09, or 8.2 percent, to $45.89. MBIA Inc., the world’s biggest bond insurer, retreated $1.71 to $61.89.
Countrywide Financial Corp. fell $1.62, or 7.6 percent, to $19.81. The biggest U.S. mortgage lender was downgraded to “underperform” by KBW Inc., which said a liquidity crisis has spread to the company’s bank deposits.
Crude oil for September delivery dropped 86 cents to settle at $71.12 a barrel in New York. The three-month Treasury bill yield fell 0.66 percentage point to 3.09 percent, its biggest decline since Oct. 20, 1987.