June 14 (Bloomberg) -- U.S. stocks rallied for a second day, led by energy companies and miners, after oil and metal prices advanced on prospects that an expanding economy will stoke demand for raw materials.
Exxon Mobil Corp., the largest crude producer, and rival Chevron Corp. helped the Standard & Poor's 500 Energy Index climb to a record. Freeport-McMoRan Copper & Gold Inc., the biggest copper company, climbed to a second straight peak.
Oil, metal and chemical companies powered the stock market's rally this year, rising more than 16 percent. Alcoa Inc.'s 37 percent climb is the biggest gain in the Dow Jones Industrial Average in 2007, while Exxon has jumped 10 percent after more than doubling over four years.
``It really seems like the market just wants to head higher,'' said Michael Church, who helps manage $2.5 billion at Church Capital Management in Philadelphia. ``It's a growing global economy and you want to hold a lot of these energy names that have led the bull market.''
The S&P 500 added 7.63, or 0.5 percent, to 1523.3 at 2 p.m. in New York. The Dow average increased 77.55, or 0.6 percent, to 13,559.90. The Nasdaq Composite Index advanced 18.13, or 0.7 percent, to 2600.44.
Energy, Raw Materials
Energy shares rose 1.9 percent as a group for the steepest advance among 10 industries in the S&P 500. Producers of raw materials added 0.9 percent.
Exxon climbed $1.48 to $84.83 after crude oil for July delivery rose $1.33 to $67.59 a barrel. Chevron added $1.20 cents to $82.35.
Freeport-McMoRan increased $2.27 to $84.02. The miner rallied to a record yesterday after saying it may sell assets to pay for debts incurred in its $26 billion acquisition of Phelps Dodge Corp. It hit a new high today after copper futures for September delivery jumped 2.5 percent to $3.40 a pound.
Gold futures for August delivery climbed $2.10 to $654.80 an ounce in New York. Silver rose 12 cents to $13.18 an ounce.
Barrick Gold Corp., the world's largest gold miner, added 16 cents to $28.40. Newmont Mining Corp., the world's second- biggest gold producer, rose 35 cents to $40.07.
CBOT Holdings Inc., operator of the Chicago Board of Trade, rose $2.54 to a record $204.04. The Chicago Mercantile Exchange Holdings Inc. said it will boost its bid for CBOT by adding a one-time dividend.
Inflation Watch
Prices paid to U.S. producers rose 0.9 percent in May, more than the 0.6 percent predicted by economists. So-called core prices, which exclude fuel and food costs, climbed 0.2 percent, the Labor Department said, matching the median forecast of economists in a Bloomberg News survey.
Bear Stearns Cos., the fifth-biggest U.S. securities firm, dropped $1.54 to $147.95 after it reported second-quarter profits that missed the average analyst estimate.
The company reported the first quarterly earnings drop in two years as mounting home-loan defaults reduced trading revenue. Second-quarter profit, excluding a one-time charge, dropped to $3.40 a share, the company said. That fell short of the average estimate of $3.51 a share from a Bloomberg survey.
Goldman Sachs Group Inc., the world's biggest securities firm, slipped $7.63 to $226.01 after posting its slowest profit growth in three quarters. Net income in the three months ended May 25 climbed to $2.33 billion, or $4.93 a share, from $2.31 billion, or $4.78, a year earlier.
Kodak, Progressive Surge
Progressive Corp. jumped $1.46, or 6.3 percent, to $24.71 for the steepest gain in the S&P 500. The third-largest U.S. auto insurer said its board approved a $2-a-share extraordinary dividend and authorized the repurchase of as many as 100 million more common shares in the next two years.
Eastman Kodak Co. surged $1.56, or 5.8 percent, to $28.59 for the second-biggest gain in the S&P 500. The world's largest photography company said it will introduce new image-sensor technology that helps eliminate dark, blurry pictures.
News Corp. gained 53 cents to $22.23. The media company controlled by Rupert Murdoch said yesterday that it plans to sell nine Fox-affiliated television stations. News Corp. may get as much as $1.65 billion for the sale, said analysts at Sanford C. Bernstein.
Dow Jones & Company Inc. dropped 97 cents to $58.17. Investors should sell shares of the company, which is the target of a $5 billion takeover bid by News Corp., because there is no guarantee that the controlling Bancroft family will accept the offer, UBS AG said. Dow Jones also boosted the weekday cover price of The Wall Street Journal by 50 percent to $1.50.
Sanofi, Amylin
Sanofi-Aventis SA, the world's third-largest drugmaker, fell after a U.S. panel blocked the company's new weight-loss pill because it was linked to suicides. American depositary receipts, each representing half a share of the French company, slid $1.70 to $41.37.
Amylin Pharmaceuticals Inc., a company that makes a rival weight loss drug, gained $1.62 to $42.88.
Autodesk Inc., the maker of software for architects and designers, lost $1.80, or 3.8 percent, to $45.24, its biggest drop since September. Analysts at Goldman, Sachs & Co. downgraded the stock to ``neutral.''
Counterfeit Colgate
Colgate-Palmolive Co., the world's biggest toothpaste maker, dropped the most in a month after it said it found counterfeit Colgate that may contain a poisonous chemical at stores in four U.S. states. The shares slid 59 cents to $66.87.
Clearwire Corp. soared $3.14 to $23.01 after the wireless Internet company agreed to promote services with DirecTV Group Inc. and EchoStar Communications Corp.
Yesterday, stocks rallied after the Federal Reserve's Beige Book report gave an upbeat assessment of U.S. regional economies, saying manufacturing and job growth picked up.
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