NEW YORK (AP) - Stocks are ending higher as investors scoop up shares of consumer product makers and financial companies as signals grow that the economy could be slowly finding its footing.
Money flowed into stocks like Procter & Gamble Co., which is boosting its dividend, and American Express Co., which is having to write off less bad debt.
The Dow Jones industrial average is up 109 points, or 1.4 percent, at 8,029. The Standard & Poor’s 500 index is up 11, or 1.3 percent, at 852. The Nasdaq composite index is up 1, or 0.1 percent, at 1,627 after disappointing results from Intel Corp.
Two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.5 billion shares.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
NEW YORK (AP) _ Investors picked up shares of consumer product makers and industrial companies Wednesday but were mostly cautious after getting more evidence that the economy is still struggling.
Money flowed into stocks like Procter & Gamble Co. seen as better able to weather a recession but technology shares slumped after Intel Corp.’s tightlipped forecast caused jitters about a corner of the market that had drawn buyers over the past month.
In the final hour of trading, the Dow Jones industrial average rose 53.76, or 0.7 percent, to 7,973.94.
More stocks rose than fell but the advance was held in check after the government reported that production at the nation’s factories, mines and utilities fell 1.5 percent in March, the fifth straight month of decline and worse than the 1 percent dip analysts expected.
The government reported separately that consumer prices fell 0.1 percent last month as a drop in energy prices offset the biggest rise in tobacco prices in more than a decade. It was better than the 0.1 percent rise economists had expected but still reflected weaker business activity.
Investors showed little lasting reaction to a Federal Reserve snapshot of business conditions around the nation that offered some signs that the recession could beginning to ease its grip on the economy.
Traders are hesitant to continue a five-week buying spree that has boosted the market more than 20 percent without more convincing signs that the economy is stabilizing or until companies signal they have seen the worst of a recession now in its 17th month.
David Kelly, chief market strategist at JPMorgan Funds, said it could take months for investors to get a better sense of whether the economy has managed to break its slide.
“It’s like April weather,” he said. “Some days it will seem an awful lot like winter and other days it will feel like spring.”
The Standard & Poor’s 500 index rose 1.68, or 0.2 percent, to 843.18. The tech-heavy Nasdaq composite index fell 17.13, or 1.1 percent, to 1,608.59, reflecting disappointment about Intel’s report.
About three stocks rose for every two that fell on the New York Stock Exchange, where volume came to a light 1.1 billion shares.
The modest buying wasn’t a surprise to traders after stocks fell nearly 2 percent Tuesday after the government said retail sales fell in March. Analysts had expected an increase. The drop touched off worries that consumers, who account for more than two-thirds of U.S. economic activity, might not be strong enough to help the economy recover.
Investors bought industrial stocks after cost-cutting at CSX Corp. helped the railroad operator post better-than-expected earnings for the first three months of the year. The stock rose $2.23, or 7.9 percent, to $30.62.
Consumer staples stocks _ considered a refuge during recessions _ posted some of the biggest gains. Procter & Gamble, the maker of Tide detergent and Crest toothpaste, rose $1.46, or 3.1 percent, to $48.71 after boosting its quarterly dividend by 10 percent, to 4 cents.
Dr Pepper Snapple Group Inc. rose 28 cents, or 1 percent, to $19.64 after an analyst added the drink maker to a list of highly rated stocks.
American Airlines parent AMR Corp. jumped 67 cents, or 15.9 percent, to $4.89 after the carrier’s $375 million loss for the first quarter wasn’t as bad as analysts had feared.
Home builders rose after the National Association of Home Builders said its housing market index posted its biggest one-month gain in five years in April as many homebuyers jumped on lower prices and incentives.
Hovnanian Enterprises Inc. jumped 32 cents, or 17.1 percent, to $2.19, while Toll Brothers Inc. rose 45 cents, or 2.5 percent, to $18.54.
Intel pushed tech companies lower. The chip maker’s earnings came in well ahead of expectations and the company said personal computer sales have “bottomed out.” Investors were unnerved, though, by Intel’s decision not to provide a detailed revenue forecast. The company said the economy makes it too hard to accurately predict results. The stock fell 62 cents, or 3.8 percent, to $15.39.
“We’re going to continue to get bad news,” said David Hefty, chief executive of Cornerstone Wealth Management in Auburn, Ind. Hefty noted though, that investors are less swayed right now by fundamentals in the economy and more by the momentum of the market.
In a sign of further weakness in the economy, Yahoo Inc. and the troubled Swiss bank UBS are both cutting jobs. Yahoo slipped 20 cents to $13.87, while UBS fell 21 cents to $10.98.
Investors are focusing on results from banks. Their recovery is seen as key to helping the overall economy bounce back.
Wells Fargo & Co. and Goldman Sachs Group Inc. have reported improved results. Citigroup Inc. and Bank of America Corp., among the hardest hit by the credit crisis, report first-quarter results within the next week.
In other market moves, the Russell 2000 index of smaller companies rose 2.14, or 0.5 percent, to 455.36.
Bond prices rose, pushing the yield on the 10-year Treasury note down to 2.77 percent from 2.79 percent late Tuesday.
The dollar was mixed against other major currencies, while gold prices rose.
Overseas, Britain’s FTSE 100 fell 0.5 percent, Germany’s DAX index lost 0.2 percent, and France’s CAC-40 fell 0.5 percent. Japan’s Nikkei stock average fell 1.1 percent.
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