US STOCKS-Wall St rises on economic data but minefields loom

                                

  * Defensive shares again dominate gainers
  * S&P down for second week; resistance building near 1,340
  * Google, Infosys shares lower, weigh on tech sector
  * Dow up 0.46 pct, S&P up 0.39 pct, Nasdaq up 0.16 pct
 * For up-to-the-minute market news see [STXNEWS/US]
 (Adds VIX, updates volume)
                                
 By Rodrigo Campos
                                
 NEW YORK, April 15 (Reuters) - Encouraging economic
indicators sent U.S. stocks higher on Friday, but the market's
recent struggles are set to continue into next week when more
than one-fifth of S&P 500 companies report results.
                                
 The S&P 500 fell for a second straight week, and some in
the market pointed to strong resistance building around 1,340.
The daily chart shows a bearish double top near that level.
                                
 In another worrisome sign, investors again favored
defensive stocks, which tend to do better in times of waning
growth. Utilities <.GSPU> and healthcare <.GSPA> were the S&P
500's top-performing sectors.
                                
 Disappointing results from Google and Infosys weighed on
technology shares, while financials were pressured by Bank of
America's results.
                                
 "Even while some of the earnings (were not) exactly what
the market hoped for, the macro economic data was actually
pretty good this morning," said Paul Zemsky, head of asset
allocation at ING in New York.
                                
 Consumer price inflation remained contained in March while
industrial production increased. A separate survey showed
improvement in consumer sentiment in April. For details, see
[ID:nN15209781].
                                
 Investors have been concerned that higher energy and food
costs would slow consumer spending, while at the same time
force the Federal Reserve to tighten its very loose monetary
policy earlier that anticipated.
                                
 The Dow Jones industrial average <.DJI> gained 56.68
points, or 0.46 percent, to 12,341.83. The Standard & Poor's
500 Index <.SPX> rose 5.16 points, or 0.39 percent, to
1,319.68. The Nasdaq Composite Index <.IXIC> added 4.43
points, or 0.16 percent, to 2,764.65.
                                
 For the week, the Dow fell 0.3 percent while the S&P 500
and the Nasdaq each lost 0.6 percent.
                                
 The CBOE Volatility Index or VIX <.VIX> dropped 5.8
percent to close at 15.82, its lowest level since July 2007.
                                
 The first week of earnings has been a mixed bag, with some
bellwether companies unable to excite the market despite some
cases of stronger-than-expected profits. Investors have been
disappointed with companies' revenues or outlooks.
                                
 "If this theme of discouraging reports continues, I'll
become more bearish on the season," said Randall Warren, chief
investment officer of Warren Financial Service in Exton,
Pennsylvania. "But right now, it could go either way, and it
looks like the market wants to go up."
                                
 Bank of America Corp <BAC.N> reported a
steeper-than-expected decline of 37.5 percent in profit and
named a new chief financial officer. The stock fell 2.4
percent to $12.82 and was the Dow's bigger percentage loser.
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 For details on the results, see [ID:nN15187516]
                                
 To see a graphic: http://r.reuters.com/kap98r
                                
 For an earnings scorecard: http://r.reuters.com/dup98r
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Google Inc <GOOG.O> unnerved investors late on Thursday
with a large jump in first-quarter spending. The Internet
company also reported an adjusted profit slightly under
expectations. Its stock sank 8.3 percent to $530.70.
[ID:nN14279563]
                                
 Also hurting technology stocks, Infosys Technologies Ltd
<INFY.NS><INFY.O>, India's No. 2 software services exporter,
sparked worries about the sector's growth after it forecast
annual sales lower than expected on slower client spending.
Its U.S.-traded shares fell 13.4 percent to $63.21.
                                
 Information technology <.GSPT> was the sole S&P sector to
fall. The IT sector's index fell 0.4 percent.
                                
 Charles Schwab Corp <SCHW.N> reported first-quarter
earnings that beat expectations by a penny. The broker also
said clients had reduced the percentage of their cash assets
held in Schwab to pre-crisis levels. The stock rose 2.1
percent to $18.61. [ID:nN14177981]
                                
 Bond insurer Assured Guaranty Ltd <AGO.N> surged 24.2
percent to $17.60 on heavy volume after the company announced
an agreement with Bank of America on mortgage repurchase
claims. Among other companies in the sector, MBIA Inc <MBI.N>
climbed 17.4 percent to $10.48, also on heavy volume.
[ID:nWNAB4878]
                                
 About 7.1 billion shares traded on the New York Stock
Exchange, NYSE Amex and Nasdaq, below last year's estimated
daily average of 8.47 billion.
                                
 Advancing stocks outnumbered declining ones on the NYSE by
a ratio of more than 2 to 1, while on the Nasdaq, more than
nine stocks rose for every five that fell.
 (Reporting by Rodrigo Campos; Additional reporting by Ryan
Vlastelica; Editing by Jan Paschal)