Nov. 22 (Bloomberg) -- U.S. stocks rose as oil prices retreated from more than $49 a barrel, enabling the Standard & Poor's 500 Index to rebound from its biggest drop in almost two months. Apple Computer Inc., buoyed by an analyst's forecast, led the gain.

``Oil prices coming down will be a positive,'' said Rose Grant, who helps manage $1.3 billion at Eastern Investment Advisors in Boston. ``Oil and the market tend to be trading in tandem.''

The S&P 500 added 6.90, or 0.6 percent, to 1177.24. The Dow Jones Industrial Average climbed 32.51, or 0.3 percent, to 10,489.42. The Nasdaq Composite Index rose 14.56, or 0.7 percent, to 2085.19. Benchmark indexes had their third gain in four days.

About 14 stocks advanced for every five that fell on the New York Stock Exchange. Some 1.39 billion shares changed hands on the Big Board, 2.3 percent less than this year's daily average.

On Nov. 19, the S&P 500 dropped 1.1 percent for its biggest loss since Sept. 22 following a jump in energy prices. Still, the benchmark index has climbed 7.5 percent since Oct. 26 after oil futures began pulling back from record levels.

Benchmark indexes erased earlier losses at midday after oil prices fell. Crude for January delivery shed 25 cents to $48.64 a barrel in New York amid speculation mild weather in the U.S. Northeast will help refiners bolster heating oil supplies and slower economic growth may ease global demand. The contract earlier touched $49.55 in electronic trading, the highest since Nov. 8.

Apple

Apple, the maker of iMac personal computers and iPod music players, jumped $6.18, or 11 percent, to $61.35 for the biggest rally in the S&P 500.

Piper Jaffray Cos. analyst Gene Munster said the stock may reach $100 in the next 12 months, citing a survey that shows the iPod is boosting sales of other Apple products. Munster also lifted his estimates for 2005 sales and profit.

Campbell Soup Co. climbed $1.35, or 4.9 percent, to $28.71, for the second-largest advance in the S&P 500. The soupmaker reported first-quarter profit of 56 cents a share, topping the average analyst estimate of 52 cents, according to Thomson Financial.

Toys ``R'' Us Inc., the No. 2 U.S. toyseller, gained 42 cents to $19.78. The company's third-quarter loss narrowed to 12 cents a share from 22 cents a year earlier following the closure of its Kids ``R'' Us chain. Analysts surveyed by Thomson had expected a net loss of 15 cents a share.

`More Comfortable'

``Earnings growth is going to be good,'' said Scott Wren, senior equity strategist at A.G. Edwards & Sons Inc. in St. Louis. ``The market is becoming more comfortable with the overall economic environment and earnings outlook.''

Profit at companies in the S&P 500 grew 16.8 percent in the third quarter and is expected to increase 15 percent in the fourth, according to analysts surveyed by Thomson. That's more than double the average over the past 20 years of 7 percent quarterly growth.

A gauge of insurance shares rose 1.5 percent for the second- biggest gain among the S&P 500's 24 industry groups.

Marsh & McLennan Cos., the world's largest insurance broker, advanced 63 cents to $27.90 after Chief Executive Michael Cherkasky said the company may settle New York Attorney General Eliot Spitzer's claims of rigged bids and kickbacks within a month. Settling the allegations would resolve an investor concern that contributed to a 40 percent decline in the stock since the suit was filed on Oct. 14.

American International Group Inc., which was not sued, added $1.05, to $62.85. The stock was the biggest contributor to the Dow average's gain.

Sirius

Sirius Satellite Radio Inc. climbed for a second day, adding 80 cents to $5.97. Mel Karmazin, named the company's new chief executive officer on Nov. 18, bought 1.5 million shares of the stock for a total of $8.04 million the next day, according to a filing with the U.S. Securities and Exchange Commission.

Forest Laboratories Inc., which sells drugs to treat heart and mental disorders, slid $3.49, or 8.7 percent, to $36.80, for the biggest drop in the S&P 500. Banc of America Securities LLC analyst David Maris cut the stock to ``sell'' from ``neutral.'' He cited the earlier-than-expected entrance of a generic form of Forest's Celexa antidepressant as one reason for the downgrade.

Google Slumps

Google Inc., which owns the world's most-used Internet search engine, lost $4.30 to $165.10. The company said in a filing with the SEC that its co-founders, Larry Page and Sergey Brin, as well as Chief Executive Eric Schmidt will sell 16.6 million shares over the next 18 months.

Krispy Kreme Doughnuts Inc. shed $1.86 to $9.64. The No. 2 U.S. doughnut maker pulled its systemwide sales forecast of 15 percent this fiscal year. It also posted a third-quarter loss of $3 million because of higher costs and the first decline in sales at its stores since the company went public in 2000.

The S&P 500 shares, called Spiders, rose 56 cents to $117.98. Nasdaq-100 tracking shares, known by their QQQ symbol, added 37 cents to $39.05.

S&P 500 futures expiring in December gained 5.70 to 1178 on the Chicago Mercantile Exchange. Nasdaq-100 Index futures climbed 13.50 to 1571.50.

The Russell 2000 Index, which tracks companies with a median market value of about $504 million, advanced 1.3 percent to 621.52. The Dow Jones Wilshire 5000 Total Market Index, the broadest measure of U.S. shares, rose 71.75, or 0.6 percent, to 11,540.13. Based on changes in the Wilshire, the value of stocks increased by $86.1 billion.

American International Group Inc. (AIG US)
Apple Computer Inc. (AAPL US)
Campbell Soup Co. (CPB US)
Forest Laboratories Inc. (FRX US)
Google Inc. (GOOG US)
Krispy Kreme Doughnuts Inc. (KKD US)
Marsh & McLennan Cos. (MMC US)
Sirius Satellite Radio Inc. (SIRI US)
Toys ``R'' Us Inc. (TOY US)

To contact the reporter on this story: Ari Levy in New York at alevy5@bloomberg.net.

Last Updated: November 22, 2004 16:36 EST