Stocks rose yesterday as the drumbeat of earnings' warnings from corporate America was drowned out by investors hollering for a deep interest rate cut from the Federal Reserve when the central bankers meet next week.

Automakers, financials and airlines rose, while energy-related issues fell. For the Nasdaq, it was the third straight up day. Year-to-date, the Nasdaq is down 16.7 per cent, the Dow off 0.7 per cent and the S&P 500 down 6.3 per cent.

Among the profit warnings shrugged off by the broader market was one from Transmeta, a maker of computer chips designed to conserve power in laptop computers. The shares fell more than 57 per cent, or $7.24, to $5.36.