US stocks: Stocks rise slightly, Intel offsets jobs data

NEW YORK - US stocks ended slightly higher on Friday, helped by strength in technology after bellwether Intel Corp. lifted its sales forecast, although a weak jobs report put a damper on Wall Street.


Although Friday's gains were small, they were enough to drive the Dow average to a nine-month closing high.


Weaker oil prices lent some support, continuing to ease worries about the impact that high crude has on corporate profits and consumer spending.


NYMEX crude for January delivery ended lower for the third day in a row, falling 71 cents to settle at $42.54 a barrel, as rising inventories and warmer weather relieved worries about winter fuel supplies.


The Dow Jones industrial average closed up 7.09 points, or 0.07 per cent, at 10,592.21 and the Standard & Poor's 500 Index was up just 0.84 of a point, or 0.07 per cent, to end at 1,191.17. The Nasdaq Composite Index edged up 4.39 points, or 0.20 per cent, to close at 2,147.96.


The Standard & Poor's 500 ended at its highest mark in more than three years -- for the second time this week. And the tech-driven Nasdaq scored its highest close since January.


For the week, the Dow ended up 0.67 per cent, the S&P advanced 0.72 per cent and the Nasdaq ended up 2.19 per cent. Stocks also are up for the year so far, with the Dow up 1.32 per cent, the S&P 500 up 7.13 per cent, and the Nasdaq up 7.22 per cent.


"The lighter-than-expected jobs numbers really provided the theme today," said Todd Clark, head of listed trading at Wells Fargo Securities.


"The bond market was sharply higher, which I think siphoned some money away from equities. But in general, I think the market's doing quite well, considering the big run that we've had."


The keenly awaited jobs data weighed on stocks. The Labor Department said a surprisingly soft 112,000 US jobs were created in November. Economists polled by Reuters had expected a gain of 180,000.


Treasury debt prices soared on the jobs figures, which soothed worries that the Federal Reserve might raise interest rates more aggressively. The price of the benchmark 10-year US Treasury note jumped more than a full point to 99-28/32, while its yield fell to 4.27 per cent from 4.37 per cent on Thursday.


The dollar fell further, hitting a new record low against the euro. By late Friday afternoon, the euro was at $1.3458, a new record high against the dollar, according to Reuters data.


A falling dollar can hurt stocks by dissuading foreign investors from buying US assets, although a lower greenback can increase US exporters' profits.


THE INTEL EFFECT


Tech stocks were buoyed by Intel, a day after the world's largest maker of microchips raised its quarterly revenue target, saying demand for personal computers and servers was driving sales higher.


Intel jumped 5.3 per cent, or $1.20, to $23.91, lifting shares of other semiconductor stocks. Advanced Micro DevicesInc. gained 2.7 per cent, or 60 cents, to $23.22.


The advance by Intel, a Dow component that trades on Nasdaq, also helped the blue-chip average.


"The most exciting news was Intel," said Brian Williamson, vice president, equity trading, at The Boston Co. Asset Management. "There was buying into technology this morning, although that somewhat abated during the afternoon."


Shares of International Business Machines Corp. rose 1.4 per cent, or $1.32, to $97.08, as The New York Times reported it was looking to sell its personal computer business in a deal that could be worth up to $2 billion.


But Apple Computer Inc. tumbled nearly 4 per cent, or $2.53, to $62.68 after an analyst at Needham & Co. lowered the investment rating on the stock to "hold" from "buy."


Shares of aluminum companies Alcoa Inc. and Alcan Inc. fell after the brokerage firm UBS lowered its investment ratings to "neutral" from "buy" on both companies. Alcoa fell 57 cents to $32.86 and Alcan slipped 63 cents to $48.79.


Overall, trading was active, with 1.56 billion shares changing hands on the New York Stock Exchange, above the 1.4 billion daily average for last year. About 2.42 billion shares were traded on Nasdaq, above the 1.69 billion daily average last year.


Advancers outnumbered decliners by 5 to 3 on the New York Stock Exchange, although decliners outnumbered advancers by 8 to 7 on Nasdaq.


Early in the afternoon, explosions in Madrid caused a slight dent in equities, traders said, but stocks quickly recovered. The Basque separatist group ETA set off five bombs at petrol stations around Madrid on Friday, putting a stranglehold on the city at the start of a long holiday weekend.


"When the news first came out, it caused some bids to be cancelled, but ... the market stabilized," said Todd Clark, head of listed trading at Wells Fargo Securities.


"I don't think it had a big impact."



- REUTERS