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By Kevin Plumberg
NEW YORK, April 10 (Reuters) - U.S. stocks rose on
Thursday after a brokerage upgrade of chip makers lifted
technology stocks and on optimism that poor March sales may
have been the low point for retailers this year.
Intel Corp <INTC.O> shares jumped 3 percent and helped
lift all three major U.S. stock indexes after Banc of America
Securities upgraded the U.S. semiconductor sector, saying a
modest inventory buildup has eased.
Retail shares rose as investors bet the business
environment will improve should the current downturn reverse
as expected in the second half of the year. The sector posted
its weakest March monthly sales results for U.S. retailers in
13 years.
Shares of Wal-Mart climbed 1 percent after the world's
largest retailer raised its outlook, citing expense controls
and fewer markdowns. The stock gained in spite of Wal-Mart
posting March same-store sales growth that fell short of Wall
Street's expectations.
Tech shares also got a lift after JPMorgan Securities
raised its profit forecasts on Apple Inc <AAPL.O>. The iPod
maker's stock rose 2 percent and contributed the most to the
Nasdaq 100's <> advance.
"If you're optimistic about growth in the second half,
then what is tied to growth and most successful in times of
growth? Technology," said Marc Pado, U.S. market strategist at
Cantor Fitzgerald & Co in San Francisco.
The Dow Jones industrial average <> was up 54.72
points, or 0.44 percent, ending the day at 12,581.98. The
Standard & Poor's 500 Index <.SPX> was up 6.06 points, or 0.45
percent, finishing at 1,360.55. The Nasdaq Composite Index
<> was up 29.58 points, or 1.27 percent, at 2,351.70.
General Electric Co <GE.N> rose 0.9 percent and was the
second-biggest boost to the S&P on expectations that economic
strength outside the United States would support the
conglomerate's bottom line. GE closed at $36.75 on the NYSE.
An easing in lending markets since mid-March when the
Federal Reserve backed JPMorgan Chase's takeover of Bear
Stearns has comforted investors, who have been slowly
regaining confidence in stocks.
Many investors have become more certain that the U.S.
economy would slip into a recession during the first six
months of 2008, but this has actually helped the stock market
to recover.
"It is good because we have moved from totally unknown
territory to one where we think we know what is going on,"
said Jan Loeys, global head of asset allocation with JPMorgan,
on a conference call.
Wal-Mart's stock ended at $54.66, up 52 cents, or 1
percent on the New York Stock Exchange.
The Dow industrials also benefited from a positive outlook
from an economic bellwether, DuPont Co <DD.N>.
DuPont's stock climbed 1.2 percent to $49.64 on the New
York Stock Exchange after the chemical company raised its
profit outlook and said strong growth in its agriculture
businesses and emerging markets should help offset weakness in
U.S. housing and automotive markets. For details, see
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Adding to investor confidence, Goldman Sachs Group Inc
Chief Executive Lloyd Blankfein said on Thursday that
financial markets are likely in the late stages of the credit
crisis that began last summer.
Intel's stock gained 3.1 percent to $22.08 on the Nasdaq.
Apple shares rose 2.1 percent to $154.55 after JPMorgan
Securities raised its second-quarter and 2008 estimates for
the company.
Volume on the New York Stock Exchange was modest with 1.29
billion shares changing hands, down from last year's daily
average of 1.90 billion shares. On Nasdaq, 2.20 billion shares
traded, slightly above last year's daily average of 2.17
billion.
Advancers beat decliners by a ratio of about 5 to 3 on the
NYSE. On Nasdaq, about three stocks rose for every two that
fell.
(Additional reporting by Cal Mankowski; Editing by Jan
Paschal)
