* November new home sales drop 11.3 percent
* Micron, Red Hat rise after profits beat expectations
* Dow up 0.01 pct, S&P 500 up 0.2 pct, Nasdaq up 0.8 pct
* For up-to-the-minute market news, click STXNEWS/US
(Adds volume figures)
By Leah Schnurr
NEW YORK, Dec 23 (Reuters) - Technology shares rose on
Wednesday after solid earnings from Micron Technology and Red
Hat, but an unexpected drop in new home sales kept a lid on
the broader market's gains.
The Dow and S&P 500 were little changed as data showed new
home sales dropped 11.3 percent, sinking to a seven-month low
in November. Volume was light on the last full trading day
before the Christmas holiday. For details, see []
Better-than-expected results boosted Red Hat Inc <RHT.N>
shares 5.2 percent to $31.43 on the NYSE and lifted other
business software companies. Tibco Software Inc <TIBX.O>
gained 7.4 percent to $9.73 on the Nasdaq after results that
beat the Street's expectations, and bellwether Oracle Corp
<ORCL.O> rose 1.1 percent to $24.73.
Micron Technology Inc <MU.N> climbed 6.2 percent to $9.99
after posting its first quarterly profit in nearly three
years. [] and []
"Tech is the canary in a coal mine. It's one of the first
sectors that turns up," said John Canally, investment
strategist and economist for LPL Financial in Boston.
"Valuations on tech aren't too stretched. We think in
general right now, tech is the place to be."
The housing figures were a disappointment because of the
sector's crucial role in the economic recovery. Home
improvement chain Home Depot Inc <HD.N> shed 1 percent to
$29.00 and ranked among the Dow's worst drags.
Though it achieved only a modest gain, the S&P 500 closed
at the key technical level of 1,120. Market technicians have
said a breakout above 1,120 could be a harbinger for more
gains into year-end. The S&P 500 reached a fresh 14-month
high, while the Nasdaq set a 15-month high.
The Dow Jones industrial average <> inched up 1.51
points, or 0.01 percent, at 10,466.44. The Standard & Poor's
500 Index <.SPX> added 2.57 points, or 0.23 percent, to
1,120.59. The Nasdaq Composite Index <> climbed 16.97
points, or 0.75 percent, to 2,269.64.
The New York Stock Exchange will close at 1 p.m.(1800 GMT)
on Thursday for Christmas Eve and will be closed on Friday for
Christmas.
Energy stocks moved higher, as U.S. oil futures <CLc1>
jumped 3.1 percent, or $2.27, to settle at $76.67 per barrel
after data showed U.S. crude oil inventories fell more than
expected last week as imports declined. []
The PHLX Oil Service index <.OSX> shot up 1.5 percent,
lifted by Schlumberger Ltd <SLB.N>, which rose 2 percent to
$65.23. Barclays Capital raised its rating on shares of the
oilfield services company to "overweight" from "equal-weight."
[]
The dollar lost 0.5 percent against a basket of major
currencies <.DXY>, lifting exporters like Caterpillar Inc
<CAT.N>, which was up 0.7 percent at $58.32, and helped limit
declines in the Dow and the S&P 500.
Rounding out the day's data, the final December reading on
consumer sentiment from the Reuters/University of Michigan
surveys and November personal spending both came in weaker
than expected.
Volume was light on the New York Stock Exchange, with
785.9 million shares changing hands, well below last year's
estimated daily average of 1.49 billion, while on the Nasdaq,
about 1.59 billion shares traded, below last year's daily
average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by
5 to 2, while on the Nasdaq, nine stocks rose for every four
that fell.
(Reporting by Leah Schnurr: Editing by Jan Paschal)
