U.S. stocks rose, erasing the Dow Jones Industrial Average’s 2010 loss, oil advanced and Treasuries fell after American new home sales climbed more than estimated and FedEx Corp. boosted its profit forecast. The Dow average climbed 51.24 points, or 0.5 percent, to 10,475.86 at 10:08 a.m. New York time. The Standard & Poor’s 500 Index gained 0.6 percent, led by transportation companies such as FedEx and United Parcel Service Inc. Crude oil futures rallied 0.2 percent to $79.14 a barrel. Yields on 10-year Treasuries gained one basis point to 3 percent. Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month, a signal the worst of the slump triggered by the end of a government tax credit is over. FedEx joined UPS, the world’s largest package delivery company, in lifting its earnings forecasts. More than 83 percent of S&P 500 companies have exceeded the average analyst profit estimate since July 12. “I’m more optimistic,” said Traxis Partners LLC’s Barton Biggs, who added that he doubled his equity holdings this month after slashing them in half. Biggs returned 38 percent in 2009, triple the industry average. “I’ve definitely changed my mind to the degree of risk out there,” he said. To contact the reporter on this story: Stephanie Borise in New York at sborise1@bloomberg.net

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