(Bloomberg) – U.S. stocks added to a global rally as a report showed new orders rose in service industries and investors speculated the Federal Reserve will signal its benchmark interest rate will remain at a record low for an extended period. The dollar fell and gold climbed to a record.

Aetna Inc. and Cigna Corp. rallied at least 6 percent on speculation Republican victories in yesterday’s elections will bolster opposition to legislation overhauling health care. Alcoa Inc. and U.S. Steel Corp. climbed at least 2.9 percent as a weakening dollar boosted metal prices. Merck & Co. and Walt Disney Co. rose more than 3.2 percent to lead gains in the Dow Jones Industrial Average.

“If you look in the interior of the report, new orders actually moved up,” Jeffrey Kleintop, who helps oversee about $247 billion as chief market strategist at LPL Financial in Boston, said of the Institute for Supply Management’s service- industries report. “And that’s sort of the leading indicator of where this report generally heads.”

The Standard & Poor’s 500 Index added 1.4 percent to 1,060.08 at 10:58 a.m. in New York. The Dow increased 137.39 points, or 1.4 percent, to 9,909.3. Europe’s Dow Jones Stoxx 600 Index climbed 1.9 percent as companies from Societe Generale SA to Marks & Spencer Group Plc topped analysts’ estimates. The MSCI Asia-Pacific Index added 1 percent.

All 10 industries in the S&P 500 advanced at least 0.8 percent after ISM’s report on non-manufacturing businesses showed 1.4 percent growth in new orders and a 2 percent increase in the backlog of orders. The main index in the report fell to 50.6, below analysts’ estimates while still signaling growth.

Waiting for Fed

Fed officials may today indicate their $1 trillion injection into the economy is helping to revive growth without requiring an increase in interest rates from near zero, economists said. Chairman Ben S. Bernanke and his colleagues are reluctant to raise rates until the labor market shows signs of recovery, even though a report last week showed the economy resumed growth after 12 months of contraction. The statement is due at 2:15 p.m. in Washington.

“It’s basically going to be the Fed reiterating their policy: They’re poised to do what is necessary to sustain the recovery, they’re not particularly worried about inflation at the moment,” said Peter Jankovskis, who helps manage about $1.5 billion as co-chief investment officer at Oakbrook Investments in Lisle, Illinois. “Those are the types of words investors will probably be looking for.”

Health-Care Rally

Aetna, the third-largest U.S. health insurer, jumped 6.7 percent to $28.40. Cigna climbed 6 percent to $30. A group of health-care equipment and service companies jumped 2.3 percent for the steepest advance among 24 industries.

U.S. Senate Majority Leader Harry Reid signaled that Congress may not send health-care legislation to President Barack Obama this year, fueling concern among some Democrats that the debate will continue into the 2010 election year. Republicans swept governors’ races in New Jersey and Virginia yesterday as voters concerned about rising jobless rates and record home foreclosures punished Democrats.

“Let’s call it a politically-inspired rally, given the Republicans did better in the New Jersey and Virginia elections than some had anticipated,” said Robert Schaeffer, who helps oversee $2 billion at Becker Capital Management Inc. in Portland, Oregon.

Alcoa added 2.9 percent to $13.03. U.S. Steel climbed 4.5 percent to $37.09. Gold rose to a record of $1,096.20 an ounce, while copper led industrial metals higher.

The Dollar Index, a six-currency gauge of the greenback’s strength, fell 0.7 percent to 75.872, erasing yesterday’s gain. The Reuters/Jefferies CRB Index of 19 raw materials climbed for a third straight day, rising 0.8 percent.

Earnings Season

Time Warner Inc. climbed 2.3 percent to $30.86. The owner of Warner Bros. film studio and publisher of Sports Illustrated reported third-quarter profit of 61 cents a share from continuing operations before some items. Analysts in a survey had estimated profit of 54 cents a share on average.

Of 378 companies in the S&P 500 that have published quarterly earnings since Oct. 7, 84 percent exceeded estimates, according to data compiled by Bloomberg. That would mark the highest full-quarter proportion in data going back to 1993.

“Earnings have been good since the beginning of the reporting season,” said Alexandre Iatrides, fund manager at KBL Richelieu in Paris, which oversees about $4.5 billion. “The reports have been of quality. Now we need to focus on economic data to see if companies will have top-line growth.”

Baker Hughes Slumps

Baker Hughes Inc. slipped 3.8 percent to $41.77. The oilfield-services provider that agreed in August to buy BJ Services Co. said third-quarter profit plunged 87 percent after energy prices tumbled.

The S&P 500 yesterday climbed for a second day as Warren Buffett agreed to buy Burlington Northern Santa Fe Corp., spurring optimism that equities will continue to rebound after $11.6 trillion in government spending, lending and guarantees returned the economy to growth. The index has rallied 56 percent from a 12-year low in March.

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