US stocks: Markets close higher before holiday, techs lead

NEW YORK - US stocks closed higher on Wednesday, with technology stocks Google Inc. and Apple Computer Inc. leading the way in quiet trading as Wall Street wound down for Thanksgiving.

The tech strength helped the broader market offset another rise in oil prices. US crude oil futures closed above US$49 a barrel, reversing an earlier tumble caused by a big rise in supplies of domestic distillate fuels.

"The two major things that are on the barometer right now are oil and the dollar," said Evan Olsen, head of equity trading at Stephens Inc.

The Dow Jones industrial average was up 27.71 points, or 0.26 per cent, at 10,520.31. The Standard & Poor's 500 Index was up 4.82 points, or 0.41 per cent, at 1,181.76. The technology-laced Nasdaq Composite Index was up 18.26 points, or 0.88 per cent, at 2,102.54.

Trading volume was 1.1 billion shares on the New York Stock Exchange, well below the 1.4 billion daily average for last year. About 1.5 billion shares were traded on Nasdaq, below the 1.69 billion daily average last year.

US markets will be closed for Thanksgiving on Thursday and equity markets have shortened trading hours on Friday.

"It was very slow ahead of Thanksgiving ... equity investors were very cautious ahead of what is considered to be a 4-day holiday for the market," said Ned Riley, chief investment strategist at State Street Global Advisors in Boston.

However, he said he was cheered by advancers outnumbering decliners by the end of the session. Stocks advancing outnumbered those declining on the NYSE by about 3 to 1 and on Nasdaq by about 3 to 2.

"Regardless of the fact that we've had a fairly flat market (during today's session), the bias has been toward stocks posting positive gains for the day."

Technology stocks were helped by internet company gains. Goldman Sachs gave a boost to web search company Google's shares, giving it a US$215 price target. Google rose 4 per cent, or US$7.24 to US$174.76, while Yahoo Inc. rose 3 per cent, or US$1.21 to US$37.61 and online marketplace eBay Inc. was up 2 per cent, or US$2.18 at US$111.71.

Apple, maker of iPod, rose a second day after Piper Jaffray raised its price target on the stock to US$100 from US$52. It was up 4.5 per cent, or US$2.78 at US$64.05.

"The bottom line is that Apple is clearly going into this holiday season with the iPod (music device), which appears to be the most popular downloading piece of equipment," said Riley.

Chip stocks rose a day after an Advanced Micro Devices Inc. executive said computer chip sales have recovered from a "hiccup" caused by anxiety surrounding the presidential election. Advanced Micro was up 18 cents at US$21.57 and Intel Corp. rose 24 cents to US$23.61.

Economic news gave a modest boost to sentiment, with data showing Americans filing initial claims for jobless pay shrank by more than expected last week to 323,000.

But the dollar fell to fresh lows against the euro. While a falling dollar helps US exports, it can weigh on the market as a whole as foreign investors are discouraged from investing in US assets.

January crude futures settled at US$49.44 a barrel, up 50 cents.

Some department stores nudged ahead before "Black Friday" -- considered the start of the traditional holiday-shopping season. May Department Stores rose 29 cents to US$29.64.

"Department stores are up a touch today and people are anticipating a fairly firm and solid Christmas season," said Riley.

Shares of restaurant companies were helped by news that tests of an animal suspected of having mad cow disease were negative. McDonald's Corp. rose 30 cents to US$30.40.

- REUTERS