Stocks climbed yesterday, buoyed by upbeat earnings from computer giant IBM and remarks by Federal Reserve Chairman Mr Alan Greenspan that soothed fears interest rates may be heading higher this year.

International Business Machines soared $13.50 to $117 (€126.06), triggering gains in other leading technology issues, after the company made positive comments on its second-quarter earnings. IBM reported a 1 per cent drop in revenues but its earnings beat analysts' estimates and its outlook was upbeat. Analysts raised their forecasts for IBM's future earnings and stock performance.

Investors were further inspired by comments from Mr Greenspan before a Senate committee. He tempered his usual warnings about inflation and tight labour markets with upbeat talk on positive trends such as continued productivity growth.