Sept. 24 (Bloomberg) -- U.S. stocks gained, led by technology companies, after analysts recommended shares of Microsoft Corp., Apple Inc. and EMC Corp.

Microsoft, the world's biggest software maker, rose the most in five months after Goldman, Sachs & Co. said the company's ``Halo 3'' video game will boost revenue. Apple, the largest producer of portable music players, climbed to a record after Citi Investment Research said profit will rise on demand for personal computers and iPhones. EMC, the biggest maker of data- storage computers and software, advanced to the highest since August 2001 after Citi and Bear Stearns & Co. upgraded the stock.

The Standard & Poor's 500 Index added 0.66 to 1,526.41 as of 12:25 p.m. in New York. The Dow Jones Industrial Average increased 19.83, or 0.1 percent, to 13,840.02. The Nasdaq Composite Index, which gets 43 percent of its value from computer-related shares, climbed 15.03, or 0.6 percent, to 2,686.25.

Analysts expect technology companies in the S&P 500 to post an average profit gain of 10.7 percent in 2007 and 22.6 percent in 2008, according to estimates compiled by Bloomberg. The 2008 estimate is the largest projected gain among the S&P 500's 10 main industry groups.

``Tech is a nice area,'' said James Gaul, who helps oversee about $2.2 billion as a portfolio manager at Boston Advisors LLC in Boston. ``Earnings will generally be positive and will probably surprise to the upside across the board.''

Global Stocks Advance

Emerging market stocks advanced, pushing a benchmark index to a record, while European mining stocks climbed on expectations higher metals prices will increase earnings. Asian equities advanced for a fourth straight day.

U.S. stocks posted the biggest increase since March last week after the Federal Reserve reduced its benchmark lending rate by half a percentage point.

The S&P 500 has climbed 1.6 percent this quarter, while the Dow average has gained 3.3 percent. The Nasdaq is up 3.3 percent. For the year, the S&P 500 has risen 7.7 percent. The Dow average has gained 11.1 percent, while the Nasdaq is up 11.3 percent.

Microsoft climbed 95 cents, or 3.3 percent, to $29.60 today for the top gain in the Dow average. Goldman analysts including Sarah Friar said they expect a ``stellar'' Sept. 25 release of Halo 3, designed for Microsoft's Xbox 360 game system. The game may generate $170 million in revenue during Microsoft's fiscal quarter that ends in September, Friar wrote.

Apple, EMC

Apple gained $4.99 to $149.15. Citi analyst Richard Gardner raised his 2008 and 2009 profit estimates and boosted his share- price forecast to $185 from $160. Gardner has a ``buy'' rating on the stock.

EMC added $1.49 to $20.52. Citi raised its recommendation to ``buy'' from ``hold,'' while Bear Stearns upgraded the shares to ``outperform'' from ``peer perform.''

Motorola Inc., the largest U.S. maker of mobile phones, climbed 26 cents to $18.15. RBC Capital Markets lifted its recommendation on the shares to ``outperform'' from ``sector perform,'' saying that new handsets may revive sales growth.

Dell Inc. gained 39 cents to $28.15. The second-biggest personal-computer maker will begin selling desktop computers and laptops through China's largest electronics retailer to win shoppers in the world's second-largest PC market.

GM Labor Talks

General Motors Corp. increased 34 cents to $35.28, paring an earlier advance of as much as $1.36. The largest U.S. automaker's U.S. factory employees went on strike nationwide for the first time in 37 years, after the company failed to reach a new labor agreement with the United Auto Workers.

Ford Motor Co., the second-largest U.S. automaker, gained 27 cents to $8.50.

Some 555 million shares changed hands on the New York Stock Exchange, 17 percent more than at the same time last week.

Economic reports this week may show home sales in the U.S. dropped in August to the lowest level in almost six years while consumer spending gained, signs that the fallout from a housing recession has yet to reach the biggest part of the economy.

In other markets, the dollar fell to a record against the euro and weakened versus the yen.

Treasuries fell as rising stock and credit derivatives markets showed investor demand for higher yielding assets is returning after the Fed lowered interest rates.

The cost of overnight borrowing in dollars decreased for a fourth straight day. The London interbank offered rate that banks charge each other for overnight loans in dollars declined 4 basis points to 4.86 percent, according to the British Bankers' Association.

To contact the reporters on this story: Michael Patterson in New York at mpatterson10@bloomberg.net.

Last Updated: September 24, 2007 12:27 EDT