* Bernanke says U.S. should avoid double-dip recession
* Tech shares fall on broker comments, Microsoft
* Dow up 0.7 pct, S&P up 0.6 pct, Nasdaq off 0.6 pct
* For up-to-the-minute market news see []
(Updates to afternoon)
By Rodrigo Campos
NEW YORK, June 8 (Reuters) - U.S. stocks mostly rose in
volatile trading on Tuesday, lifted by materials and defensive
plays, while technology shares fell as their exposure to
European economies continued to trouble investors.
Buyers selectively chose defensive sectors and those with
higher U.S. exposure, a day after Federal Reserve Chairman Ben
Bernanke said the U.S. economy seemed to have enough momentum
to avoid a "double-dip" recession. For details, see
[]
"It may be a play on U.S. versus the rest of the world,
where tech is probably the most export-oriented," said Jack
Ablin, chief investment officer of Harris Private Bank in
Chicago.
"Investors are sort of cautiously paring back their
international exposure and even within the S&P 500, trying to
position in a domestic theme."
Telecommunications services and consumer staples shares
ranked among the top performers. AT&T <T.N>, a Dow component,
rose 2.1 percent to $24.82.
The Dow Jones industrial average <> gained 71.95
points, or 0.73 percent, to 9,888.44. The Standard & Poor's
500 Index <.SPX> rose 5.96 points, or 0.57 percent, to
1,056.43. But the Nasdaq Composite Index <> dropped 11.95
points, or 0.55 percent, to 2,161.95.
As European Union finance ministers discussed how to
reduce swollen budget deficits to contain a debt crisis,
Spanish public service workers staged a one-day strike that
underlined the problems governments face in implementing
austerity measures. For details see [].
"Investors don't have the confidence that Europe will be
able to address its shortfalls, or that European growth can
recover enough to help these economies," said Charles
Lieberman, chief investment officer of Advisors Capital
Management in Paramus, New Jersey.
The technology sector was also hit after Bank of
America-Merrill Lynch cut price targets on several Internet
stocks, citing uncertainty over earnings due to the dollar's
gains against the euro since April. Amazon.com Inc <AMZN.O>
fell 3 percent to $118.35. []
Another drag on tech was Microsoft Corp <MSFT.O>, which
lost 1.3 percent to $24.97 after the Dow component said it
planned to make a private offering of senior notes in a move
to repay short-term debt. []
An S&P materials sector index <.GSPM> rose 1.7 percent and
ranked as the best-performing sector in the broad S&P 500.
Freeport-McMoRan Copper and Gold <FCX.N> rose 3.8 percent
to $60.88 and U.S. Steel <X.N> gained 1.2 percent to $40.80.
The economy of Brazil, Latin America's largest, surged at
its fastest pace in at least 14 years in the first quarter,
fueled by strong investment and domestic demand, government
data showed.
An index of New York-traded stocks of Brazilian companies
<.BKBR> rose 1.4 percent.
"Emerging markets are leading markets higher (and) that
may be pulling materials along," Ablin said.
McDonald's Corp <MCD.N> was up 1.8 percent at $67.94 after
it reported a stronger-than-expected rise in global same-store
sales in May. []
(Reporting by Rodrigo Campos; Additional reporting by Ryan
Vlastelica; Editing by Jan Paschal)
