Dow, S&P end up after positive data; Nasdaq slips

Written by Reuters
Saturday, 12 December 2009 12:51

NEW YORK: The Dow and S&P 500 closed up for a third straight session on Friday, Dec 11 after several solid consumer-related reports reinforced investors' confidence in a steady recovery by the economy, according to Reuters.

Government reports showing stronger-than-expected November retail sales and an unexpected rise in business inventories in October pointed to a recovery in consumer spending. A private survey also showed consumer sentiment improved in early December, lifting the S&P Retail index by 1.3 percent.

"Today is a repeat of prior days, with economic data showing recession is bottoming out and recovery is here," said Rick Lake, portfolio manager of the Aston/Lake Partners LASSO Alternatives Fund in Greenwich, Connecticut.

The Dow Jones industrial average was up 65.67 points, or 0.63 percent, at 10,471.50. The Standard & Poor's 500 Index was up 4.06 points, or 0.37 percent, at 1,106.41. The Nasdaq Composite Index was down 0.55 point, or 0.03 percent, at 2,190.31.

For the week, the Dow was up 0.8 percent, the S&P was near flat and the Nasdaq shed 0.2 percent.

The U.S. House of Representatives approved a bill aimed at safeguarding the financial system and warding off future crises. Bank of America closed up 2.8 percent at US$15.63 as one of the top gainers on the Dow.

Mining stocks also advanced after JPMorgan lifted its price target on five companies in the sector, including Alcoa Inc and Freeport McMoRan.

Alcoa shares surged 8.2 percent to US$14.61.

But National Semiconductor fell 3.6 percent to US$14.73, pressuring the tech sector, a day after the company posted results that prompted concerns about its ability to regain market share.

The Philadelphia semiconductor index fell 1.0 percent.

An index of airline stocks advanced 6.3 percent, its largest move up since May 4, after executives at several carriers pointed to improved outlooks in 2010.

Delta Air Lines was up 13.9 percent at US$11.25 and US Airways rose 10.5 percent to close at US$4.83.

United Technologies Corp gained 2.2 percent at US$69.40 and provided the Dow's biggest lift after the company said it expects profits to rise about 10 percent in 2010 on cost cuts. - Reuters