Tech and energy sectors lift Wall Street
NEW YORK (Reuters) - U.S. stocks jumped on Tuesday on an optimistic outlook for technology shares and gains in oil prices that lifted energy shares.
The Nasdaq composite index rallied for a fourth straight session and the S&P 500 broke above its 50-day moving average for the first time since July 24, with each index notching gains of more than 1 percent.
Apple Inc. took the lead among tech shares, extending its recent bull run and rising 4.1 percent to end at $144.16 after Piper Jaffray said the company could beat its iPhone sales goal in the current quarter.
Yahoo Inc. jumped 5.5 percent to $23.97 after Bear Stearns said the Internet media company's stock was a top pick, based on what the brokerage called a compelling valuation given its growth prospects.
Technology companies, which carry little debt on their balance sheets, have benefited in recent sessions from the view that the sector may be a safe haven for investors as the mortgage market crisis drags on financial services and other sectors of the economy.
"You're seeing some pretty good demand (in technology), and it's not surprising. I think tech can still post some good numbers even in a slower-growing economy, whereas some of the other leaders need to see that growth rate stay at a relatively high level," said Owen Fitzpatrick, head of the U.S. Equity Group at Deutsche Bank Private Wealth Management in New York.
The Dow Jones industrial average rose 91.12 points, or 0.68 percent, to end at 13,448.86. The Standard & Poor's 500 Index was up 15.43 points, or 1.05 percent, at 1,489.42. The Nasdaq Composite Index was up 33.88 points, or 1.30 percent, at 2,630.24.
The Nasdaq has risen 5.2 percent in the last four sessions -- its best four-day run since October 2003.
On the NYSE, Exxon Mobil Corp. ended up 1.8 percent at $87.23, leading the Dow and S&P 500 higher as crude oil prices jumped 1.4 percent, or $1.04, to settle at $75.08 a barrel.
The S&P energy sector index rose 2.1 to its highest level in about five weeks. Shares of ConocoPhillips advanced 1.9 percent to $83.48.
Apple's shares have risen about 17 percent in the last two weeks on expectations it will introduce new iPod products at an event scheduled for Wednesday.
Research group iSuppli also said Apple's iPhone outsold all smart phones in the United States in July.
Shares of auto maker General Motors Corp. rose 3.8 percent to $31.92 after posting a gain in vehicle sales for August.
Helping to bolster equities was a report showing that factory activity expanded narrowly in August, easing concerns that the U.S. economy may be headed for a recession while underscoring a view that the Federal Reserve could cut interest rates.
The Institute for Supply Management said its index of national factory activity expanded in August, though at a slower pace than in July. Continued...
