Market rises as data eases economic fears
NEW YORK (Reuters) - Stocks rose on Friday as a drop in oil prices, and stronger-than-expected data on consumer sentiment and housing blunted the latest concerns about the health of U.S banks.
The Nasdaq rose more than 1 percent, helped not only by lower oil prices, but also after Juniper Networks (JNPR.O) raised its full-year outlook on strong demand for network equipment. The results, which sent Juniper shares up 17.7 percent, showed strength among companies linked to the Internet.
Another drop in oil prices, adding to a sharp sell-off over the last two weeks on signs of weakening demand, was particularly welcomed by investors in airlines and industrials.
But financial stocks weighed on the Dow and S&P. Wachovia Corp WB.N shares fell 7.6 percent, leading bank stocks lower a day after the fourth-largest U.S. bank said its finance chief was quitting. In addition, a brokerage analyst downgraded the shares.
Home builders rose after the data on new homes gave a glimmer of hope for the beaten-down housing market.
Big manufacturers, including United Technologies (UTX.N), rose after a report that showed an unexpected jump in orders for long-lasting durable goods.
"We have oil down, the better-than-expected economic indicators and yet we are not up very much," said Al Kugel, chief investment strategist at Atlantic Trust in Chicago.
"One thing that is the dampening effect is that the financials are still not doing very well. Everybody is asking how much more bad news is there out there."
.The Dow Jones industrial average .DJI rose 21.41 points, or 0.19 percent, to 11,370.69. The Standard & Poor's 500 Index .SPX added 5.22 points, or 0.42 percent, to 1,257.76, while the Nasdaq Composite Index .IXIC jumped 30.42 points, or 1.33 percent, to 2,310.53.
For the week, the Dow fell 1.1 percent and the S&P 500
dipped 0.2 percent, while the Nasdaq rose 1.2 percent.
U.S. oil futures slid $2.23 to settle at $123.26 a barrel.
Consumer sentiment rebounded unexpectedly this month after falling to levels last seen in the early 1980s, as tax rebate checks helped offset high gas prices, while new home sales in July were not as weak as expected.
Among technology shares, chip maker Qualcomm Inc (QCOM.O) helped lead gains on the Nasdaq, rising 3.9 percent to $54.45, after several brokerages raised their price targets on the stock.
Juniper's shares surged 17.7 percent to $26.57 on Nasdaq. Its results helped show that companies were still investing in network equipment, particularly those items vital to handling increased Internet traffic. Shares of rival Cisco Systems (CSCO.O) gained 3.1 percent to $22.43. Continued...
