April 10 (Bloomberg) -- U.S. stocks gained after the first increase in oil prices in five days improved the earnings outlook for energy companies and analysts said Applied Materials Inc.'s revenue may beat forecasts.
Exxon Mobil Corp. and Chevron Corp. helped lift the Standard & Poor's 500 Index to its sixth straight advance. Applied Materials, the largest manufacturer of chip-making equipment, climbed to a six-week high. Mylan Laboratories Inc. was the best performer in the S&P 500 after saying fiscal 2007 earnings exceeded its projection.
Earnings at S&P 500 companies likely grew 3.3 percent in the January through March period, according to analyst estimates compiled by Bloomberg.
``It's all about earnings right now,'' said Charles Smith, who oversees $1.1 billion as chief investment officer at Fort Pitt Capital Group Inc. in Pittsburgh. ``Valuations are still reasonable. A 4 or 5 percent year-over-year growth rate is something people can live with.''
The S&P 500 added 2.90, or 0.2 percent, to 1447.51 as of 10:04 a.m. in New York. The Dow Jones Industrial Average increased 11.70, or 0.1 percent, to 12,580.84. The Nasdaq Composite Index gained 6.14, or 0.3 percent, to 2475.32.
Alcoa Inc., the world's biggest aluminum maker, will kick off the corporate earnings season when it releases first-quarter results after the close of U.S. exchanges today.
Crude oil was pulled higher by gasoline on speculation that a government report tomorrow will show that U.S. gasoline stockpiles fell for a ninth week. Oil futures rose 0.4 percent to $61.75 a barrel in electronic trading in New York.
Energy shares advanced 0.5 percent for the steepest rise among 10 industry groups. Exxon, the world's biggest oil company, increased 25 cents to $77.05. Chevron added 43 cents to $75.92.
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