Markets Stocks staged a broad and powerful rally, lifted by better-than-expected profits from a number of large companies.

"If companies show better-than-expected profits in their annual reports, many players, particularly corporate investors, will come back to the market easily."

American corporations are generally reporting better-than-expected profits for the third quarter, continuing a successful string that goes back two and a half years.

Some less recognizable companies in the technology sector also surged after announcing better-than-expected profits.

But traders often discount those estimates as conservative, so a company often must report a better-than-expected profit to get an increase in its share price.

Behind this muted optimism is a belief that the fourth quarter will yield better-than-expected corporate profits.

Behind the better-than-expected profit reports are several factors.

Procter & Gamble posted better-than-expected profits, sending its stock up more than 5 percent.

Conrail rose 4 3/8, to 44 1/2, after reporting better-than-expected profits.

Many companies were able to earn better-than-expected profits in the second quarter.