Aug. 18 (Bloomberg) -- U.S. stocks rose for a fourth day as a rally in computer-related shares and reports of a possible cease-fire in southern Iraq overshadowed record oil prices and a cut in Google Inc.'s initial public offering.

Technology companies gained after Network Appliance Inc., a maker of devices that store and distribute data on corporate computer networks, said second-quarter earnings and sales may top estimates. The Nasdaq Composite Index had its biggest advance in two months.

``We still have an economy that's improving, and that should help corporate profits and stock prices,'' said Joseph Stocke, who manages $600 million as chief investment officer of StoneRidge Investment Partners in Malvern, Pennsylvania. ``We should begin to see a pickup'' in the fourth quarter.

The Standard & Poor's 500 Index rose 13.46, or 1.2 percent, to 1095.17. The Dow Jones Industrial Average added 110.32, or 1.1 percent, to 10,083.15. The Nasdaq gained 36.12, or 2 percent, to 1831.37, the biggest advance since June 7.

All three benchmarks climbed for four consecutive days, in tandem, for the first time since October. The four-day, 3 percent gain for the S&P 500 was the biggest since March.

More than 10 stocks rose for every three that fell on the New York Stock Exchange. Some 1.3 billion shares changed hands on the Big Board, 11 percent less than this year's average.

Stocks slid to their lows of the day within the first five minutes of trading after Google cut the value of its IPO. Google said it will sell stock to the public at between $85 to $95 a share, down from $108 to $135. Google's registration statement was approved by the Securities and Exchange Commission.

Benchmark indexes rebounded after reports that a Shiite Muslim cleric was leaving the Iraqi city of Najaf. The gauges closed at their highs for the day.

Network Appliance

Network Appliance, whose products store and distribute data for clients including the Vatican and Coca-Cola Co., gained $2.31 to $19.70. The 13 percent rise was the second biggest in the S&P 500.

The company said fiscal second-quarter profit will be 13 cents to 14 cents a share on sales of as much as $379.9 million. It's expected to earn 13 cents on revenue of $370.9 million, according to analysts polled by Thomson Financial.

Indexes of semiconductor and computer-equipment stocks posted the biggest gains among the S&P 500's 24 industry groups, of 3.1 percent and 2.5 percent, respectively. Intel Corp., the world's No. 1 chipmaker, rose 71 cents to $22.22. Dell Inc., the largest personal computer company, climbed 25 cents to $35.08.

Boost From Najaf

Stocks may have gotten a boost on a British Broadcasting Corp. report, citing Reuters, of the possibility of a cease-fire between Shiite Muslim cleric Moqtada al-Sadr's militia and U.S. and Iraqi forces in Najaf, south of Baghdad. The uprising began almost two weeks ago.

``Any news that suggests stability in Iraq is good for the market,'' said Andy Brooks, head of trading at T. Rowe Price Group Inc., which oversees $207 billion. ``That's definitely causing the market to tick up a bit.''

Al-Sadr later demanded a cease-fire before he leaves Najaf's Imam Ali shrine and disarms his fighters, Reuters reported, citing al-Sadr aide Ali al-Yassiri.

Borders Group Inc., the No. 2 U.S. bookstore chain, added 91 cents to $23.23 after boosting its full-year earnings forecast and reporting second-quarter net income that topped estimates. The company said 2004 profit may be as much as $1.77 a share, up from an earlier prediction of up to $1.75.

Dillard's Misses

Retailers fell after Dillard's Inc. said second-quarter profit missed estimates and Ross Stores Inc., which uses ``Dress for Less'' as its marketing slogan, said sales at stores open more than a year dropped 3 percent in the second quarter.

Dillard's slid $1.68, or 7.3 percent, to $21.40, for the steepest decline in the S&P 500. The department-store chain said its second-quarter loss was 31 cents a share, wider than the expected loss of 16 cents, according to the average analyst estimate in a Thomson survey.

Ross Stores shed $1.85 to $22.27. The company said second- quarter profit fell 40 percent after it failed to stock up on clothing and accessories that appealed to consumers. Ross Stores expects the problem to hurt sales and profit for the rest of the year.

TJX Cos., owner of T.J. Maxx and Marshalls stores, lost 44 cents to $21.26. Earnings will start falling in the second half of the year as low-income consumers, the company's core customers, feel the effects of rising energy costs, wrote analyst Brian Tunick at JPMorgan Chase & Co. He downgraded the stock to ``underweight'' from ``neutral.''

Retail Shares Drop

An index of retail shares that includes Wal-Mart Stores Inc. slipped 0.4 percent, the only group among 24 that declined on the S&P 500. Wal-Mart, the world's largest retailer, dropped 38 cents to $54.46 and was the biggest drag on the Dow average.

The S&P 500 and the Dow average have fallen more than 3.3 percent this quarter amid concern a surge in energy prices will reduce consumer spending and slow economic growth.

Oil rose to a record after an Energy Department report showed U.S. refineries boosted their operations and gasoline demand climbed to the highest level this year. Crude oil futures added 1.1 percent to a record closing price of $47.27 a barrel on the New York Mercantile Exchange. Futures reached $47.45, the highest intraday price since oil began trading in New York in 1983. Oil is up 53 percent from a year ago.

Oil Producers, Drillers

Shares of oil producers and drillers, which have outperformed the S&P 500 this year, rose. An index of 24 companies in the benchmark has gained 11 percent in 2004, the second-biggest increase among the S&P 500's 24 industry groups.

El Paso Corp., the biggest U.S. pipeline company, added 23 cents to $7.79. Burlington Resources Inc., an oil and natural-gas producer with operations on five continents, gained 82 cents to $36.15.

The Russell 2000 Index, which tracks companies with a median market value of about $472 million, jumped 2.2 percent to 541.61. The Dow Jones Wilshire 5000 Total Market Index, the broadest measure of U.S. shares, gained 1.3 percent to 10,632.63. Based on changes in the Wilshire, the value of stocks increased by $167.6 billion.

Nasdaq-100 tracking shares, known by their QQQ symbol, added 59 cents to $33.85. The S&P 500 shares, called Spiders, climbed $1.12 to $110.03.

S&P 500 futures expiring in September rose 11.40 to 1094.50 on the Chicago Mercantile Exchange. Nasdaq-100 Index futures increased 23 to 1361.50.

Borders Group Inc. (BGP US)
Burlington Resources Inc. (BR US)
Dell Inc. (DELL US)
Dillard's inc. (DDS US)
El Paso Corp. (EP US)
Intel Corp. (INTC US)
Network Appliance Inc. (NTAP US)
Ross Stores Inc. (ROST US)
TJX Cos. (TJX US)
Wal-Mart Stores Inc. (WMT US)

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

Last Updated: August 18, 2004 17:54 EDT