Earnings reports set off a stock rally

The market, battered last week by General Electric's disappointing results, climbed after Citigroup announced a first-quarter loss than was narrower than the most pessimistic projections and Google and Caterpillar reported that overseas growth boosted their profits. Honeywell International also advanced on better-than-forecast numbers.

All 10 industry groups in the Standard & Poor's 500 index rose. For the week, it and the Dow Jones industrial average jumped 4.3%, while the Nasdaq composite index climbed 4.9%.

"People are coming to the realization that, excluding the finance sector, the earnings profile looks pretty good," said Michael Mullaney, a money manager at Fiduciary Trust Co. Google's results "put a calming effect on the entire market, especially the technology sector."

The S&P 500 added 24.77 points, or 1.8%, to 1,390.33, its highest level since Feb. 1. Although the index has rebounded 9.2% from a 19-month low on March 10, it is still down 5.3% in 2008.

The Dow climbed 228.87 points, or 1.8%, to 12,849.36, a three-month high.

The tech-dominated Nasdaq advanced 61.14 points, or 2.6%, to 2,402.97.

The Russell 2,000 index of small-company stocks gained 13.07 points, or 1.8%, to 721.07, and was up 4.8% for the week.

Three stocks rose for each that fell on the New York Stock Exchange. European shares advanced, while Asia's benchmark index retreated.

Treasury yields rose initially along with stocks but finished lower. The yield on the benchmark 10-year Treasury note fell to 3.71% in late trading from 3.73% late Thursday.

Profits have exceeded analysts' estimates at 58 of the 100 companies in the S&P 500 that have released first-quarter results. Analysts currently estimate that corporate earnings overall fell an average of 13.7% in the period.

Citigroup rose $1.08, or 4.5%, to $25.11 after it reported a drop in revenue and a loss that were smaller than expected.

"A lot of people were worried that we'd have a big negative surprise," said Edgar Peters, chief investment officer at PanAgora Asset Management in Boston. "When we didn't have a big negative surprise, that was a positive surprise."