Wall Street gains; Dow ends 2-day slide

UPDATED:

Wall Street closed Wednesday with gains, despite layoff announcements and government indicators that show the recession continues.

The Dow Jones Industrial Average closed at 8,029.62, up 109.44 points. The broader Standard & Poor’s 500-stocks Index closed up 10.56 points, to 852.06, and the tech-heavy NASDAQ closed at 1,626.80, up 1.08 points.

The Consumer Price Index report, a key indicator of inflation, declined 0.1 percent last month, according to the Labor Department.

In addition, the Federal Reserve said production at U.S. factories, mines and utilities dropped 1.5 percent in March, after a similar decrease in February. Output last month fell to its lowest level since December 1998, the Fed reported shortly before U.S. markets opened.

Investors also are concerned about Intel Corp.’s announcement after trading Tuesday that first-quarter earnings were down but that the worst might be over.

“We believe [personal computer] sales bottomed out during the first quarter and the industry is returning to normal seasonal patterns,” said Paul Otellini, Intel president and chief executive officer. The Santa Clara, Calif.-based, chip-making company reported a 13 percent drop in revenue, compared with the previous quarter and a 56 percent drop compared with the first quarter in 2008. Its report of $7.1 billion in first-quarter revenue exceeded analysts’ expectations. But the company provided no forecast revenue, which analysts wanted for guidance about upcoming quarters.

Intel stock was at $15.42, down 3.69 percent, near the close of trading.

The Federal Reserve also on Wednesday reported upbeat news. The agency reported the contraction of the economy has slowed across five of 12 U.S. regions.

The report, commonly know as the Beige Book, also stated some regions are stabilizing at a low level.

The Dow on Wednesday ended a two-day slide, following five straight weeks of gains.

Announcement of layoffs at Yahoo and UBS, Switzerland’s biggest bank, before U.S. markets opened was further evidence the global recession is not over.

In overseas trading, Japan’s Nikkei stock average fell 1.3 percent. Britain’s FTSE 100 fell 0.52 percent, Germany’s DAX index declined 0.16 percent, and France’s CAC-40 fell 0.48 percent.

On Tuesday, the major U.S. markets closed, following reports by the federal government that showed March retail sales were down 1.1 percent and a decline in wholesale prices.

The Dow closed Tuesday at 7,920.18, down 137.63 points. The S&P closed down 17.22 points, to 841.51, and the NASDAQ closed at 1,625.72, down 27.59 points.