Market rises on energy, Goldman profits soar

NEW YORK (Reuters) - U.S. stocks rose modestly on Tuesday as energy shares advanced on higher oil prices and bellwether companies reported quarterly results, although some fell short of expectations.

By far the strongest performance came from Wall Street powerhouse Goldman Sachs , which said net income nearly doubled, but its shares slipped 1.2 percent to $161.41. British regulators joined their U.S. counterparts, launching a probe into alleged fraud by Goldman, which was accused of duping clients about debt obligations tied to subprime mortgages.

The S&P energy sector <.GSPE> rose 1.7 percent as crude oil futures rose 2 percent to top $83 a barrel.

More than three stocks rose for every one that fell on the New York Stock Exchange, while on the Nasdaq, two stocks rose for every decliner. But some big names that reported results were not among the day's gainers.

The Dow Jones industrial average <.DJI> was up 24.94 points, or 0.22 percent, at 11,116.99. The Standard & Poor's 500 Index <.SPX> was up 7.43 points, or 0.62 percent, at 1,204.95. The Nasdaq Composite Index <.IXIC> was up 12.28 points, or 0.50 percent, at 2,492.39.

Coca-Cola reported mixed results, Johnson & Johnson topped quarterly forecasts but trimmed its full-year profit forecast and UnitedHealth Group soared past estimates.

"Coke wasn't as sparkling as it could've been, so you can't say that everything was above consensus, but even with the hiccup of Coke, the overall earnings trend is exceptional," said Alan Lancz, president of an investment advisory firm in Toledo, Ohio.

The major indexes' gains were modest as investors found cracks in some corporate results. IBM late Monday posted better-than-expected profits but disappointing gross margins. The stock shed 2.4 percent to $129.11 and was the top weight on the Dow, followed by Coke. Coke was down 1.7 percent to $54.40.

Johnson & Johnson fell 0.2 percent to $65.90 and UnitedHealth slid 0.3 percent to $31.12.

The price of oil rebounded from three-week lows as European airports reopened and as U.S. earnings were viewed as signs of economic recovery leading to increased energy demand.

European planes began flying again after five days of airport closures due to the massive ash cloud originating in an Icelandic volcano.

Apple Inc and Yahoo Inc are both due to report results after the market's close on Tuesday. Apple shares were down 0.8 percent to $245.19 and Yahoo slid 0.2 percent to $18.35.

(Editing by Kenneth Barry)

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