New York, July 23^rd (TradersHuddle.com) – Stocks gained, extending their weekly rally, with the S&P 500 topping the 1,100-level. A new round of healthy corporate results, General Electric’s improved outlook, and 84 of 91 European banks passing their stress tests, lifted the market, as both optimism and appetite for risk increased.

The market started under some slight pressure, as market participants digested Thursday’s gains and a new round of healthy corporate results. The better than expected results from American Express (NYSE:AXP), Ford (NYSE:F), Microsoft (NASDAQ:MSFT), and Verizon (NYSE:VZ) failed to spark an early move, as the market traded in neutral to negative territory.

But an afternoon bounce materialized thanks to earnings optimism, General Electric (NYSE:GE), and overall good results from the European Bank stress tests, which sparked a move higher by the euro. The afternoon momentum was sufficient to push the broad market index above the 1,100-level, which has proven to be a strong resistance.

General Electric, the diversified conglomerate maker of aircraft engines and power turbines, gained 3.29% to $15.71, posting the third best gain in the Dow Jones Industrial Average. The company announced that its board had approved a 20% increase in its quarterly dividend and that it extended its stock repurchase program.

The GE news along with earnings strength helped the industrial sector to be amid the best performers sectors of the session. Boeing (NYSE:BA), the world’s 2^nd largest commercial aircraft maker, was the fifth bets Dow component as shares climbed 2% to $67.93. Economic optimism and better than expected sales at the Farnborough Airshow were the drivers that pushed investors to bid the stock higher this week, ahead of the company’s July 28^th earnings report.

Shares of Verizon (NYSE:VZ), the owner and operator of the largest U.S. wireless network, jumped 3.78% to $28.02, posting the biggest percentage gain in the blue chip index, after the company beat analysts expectations. The company posted a loss due to a restructuring charge but impressed market participants on landline profit margins and customer growth in wireless. Despite headwinds from Apple’s (NASDAQ:AAPL) iPhone, the company was able to gain subscribers for the quarter, showing the strength and popularity of phones based on Google's (NASDAQ:GOOG) Android software.

Financials also gained after the stress tests in Europe, showed 7 out of the 91 European banks failing the policymakers’ stress tests. American Express (NYSE:AXP), the credit card issuer, helped the market higher, as shares climbed 3.70%, after analysts raised their ratings and price target on the stock, citing valuation after the company reported better than expected earnings on Thursday.

Crude oil fell from an 11-week high on speculation that Tropical Storm Bonnie won’t be strong enough to damage production platforms in the Gulf of Mexico. The contract for September delivery fell 32 cents to settle at $78.98 a barrel.

Alcoa (NYSE:AA), the aluminum producer was the fourth best Dow component as shares gained 2.13% to $11.05. The Board declared a quarterly common stock dividend of 3 cents per share payable August 25, 2010 to shareholders of record at the close of business on August 6, 2010.

Meanwhile, Treasuries declined as stocks advanced on an increase of investors’ appetite for risk. The yield on the benchmark 10-year note climbed 6 basis points to 2.99%.