July 23 (Bloomberg) -- Apple Inc. rose 2.6 percent in Nasdaq trading after the New York Times said Chief Executive Officer Steve Jobs has told associates he is cancer-free, four years after an operation to treat pancreatic cancer.

Jobs told members of Apple's board that he is dealing with nutritional problems after his cancer surgery, which can lead to weight loss in some cases, the newspaper said, citing people close to him. He had surgery this year to fix a problem that caused the weight loss, the Times reported.

Jobs's health resurfaced as an issue for Apple last month, when the 53-year-old CEO appeared visibly thinner at an event in San Francisco to introduce the newest iPhone. If Jobs were to leave for any reason, the stock would plummet 25 percent, said Gene Munster of Piper Jaffray & Co. in Minneapolis. That would erase almost $37 billion from Apple's market value.

Analysts asked executives about Jobs's health on a call this week to discuss the computer maker's earnings and still came away concerned because Apple didn't discuss it. The company, the maker of the iPod media player and Macintosh computer, depends on Jobs for his design and marketing sense.

``Steve loves Apple,'' Chief Financial Officer Peter Oppenheimer said when asked about Jobs's health on the call July 21. ``He serves as CEO at the pleasure of the board. He has no plans to leave Apple. Steve's health is a private matter.''

Stock Falls

Concern that Jobs might be sick, along with a disappointing earnings forecast, drove Apple stock down as much as 12 percent in Nasdaq Stock Market trading yesterday.

The stock gained $4.24 to $166.26 at 4 p.m. New York time today.

Apple spokesman Steve Dowling reiterated Oppenheimer's comments today, saying that Jobs's health remains a private matter. Spokeswoman Katie Cotton said after the June 9 San Francisco event that Jobs was suffering from a ``common bug'' and was taking antibiotics.

``Steve Jobs continues to be viewed as one of the most important CEOs in the world,'' Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon, wrote in a note yesterday. ``Concern about his health is likely to pressure the stock.''

Hargreaves, who expects Apple to outperform the broader market, said the stock's fair value is $186 and that concern about Jobs's health is responsible for ``a significant portion'' of the disparity between that estimate and the price now.

Mac Revival

Jobs co-founded Cupertino, California-based Apple in 1976 with Steve Wozniak. He returned as chief in 1997 and revived sales of Apple's flagship Macintosh, the personal computer that accounts for almost half of revenue. He conquered the digital media industry with the iPod and last year led Apple into the mobile-phone market with the iPhone.

Under Jobs, profit jumped to almost $3.5 billion last year as sales topped $20 billion for the first time. Apple's stock has surged from less than $10 in 1997.

Jobs said on Aug. 1, 2004, that he had surgery to remove a cancerous tumor in his pancreas. The form of cancer he had, called a neuroendocrine tumor, can be cured if diagnosed in time, as his case was, he wrote at the time to employees in an e-mail from his hospital bed.

Jobs, a Buddhist and vegetarian, kept his cancer a secret for nine months as he sought alternatives to surgery, Fortune magazine reported in March, citing people familiar with the situation. Apple's managers, who feared that the news of Jobs's illness might threaten the stock, decided against telling investors after consulting lawyers, Fortune said.

`Iconic CEO'

``Health is typically a private matter, but when it's the health and well-being of an iconic CEO, it's the absolute right and necessity of the company to disclose,'' said Peter Metzger, vice chairman of executive search firm CTPartners in Washington. ``It's not like he's a garden variety CEO -- he's kind of singular in what he's done.''

In March, Jobs told investors at their annual meeting that the board would have a variety of executives to choose from were he to step down. He highlighted the long tenure of top Apple managers and singled out two potential leaders: Chief Operating Officer Timothy Cook and CFO Oppenheimer. Cook stood in for Jobs during his leave in 2004.

To contact the reporters on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net

Last Updated: July 23, 2008 16:09 EDT