With US corporate profits expected to rise between 3 and 4 per cent this quarter, "the market is likely to pay up for companies that can sustain double-digit earnings growth,'' said John Davenport, chief investment officer for large stocks at Mentor Investment Group.
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US STOCKS rose for a second day as investors snapped up shares of companies with fast-growing earnings, including Cisco Systems, Dell and drug makers. The Dow rose by 110.97 points, 1.4 per cent, to 7,938.57 in early trade.