Stocks rise anew

[notiCIas]

Stocks rise anew

After a tepid morning, major indexes rise through the close on strength in tech, economic optimism.

May 23, 2005: 4:13 PM EDT
      

NEW YORK (CNN/Money) - Stocks rose anew Monday, with the tech-fueled Nasdaq closing higher for the sixth session in a row as gains in Internet and other sectors helped revive the recent rally.

Optimism looking ahead to the slew of economic reports due later in the week added to the good cheer, however, gains were limited by a rise in crude oil prices.

The Dow Jones industrial average (up 50.32 to 10,522.23, Charts) and the Nasdaq composite (up 9.32 to 2,055.74, Charts) added around 0.5 percent, according to early tallies.

The broader Standard & Poor's 500 (up 4.71 to 1,193.99, Charts) gained 0.4 percent.

Treasury prices rose, sending yields lower, and the dollar fell versus other major currencies.

Last week, a broad-based rally in four out of five sessions gave the stock market its biggest up week of the year. The advance was brought on by easing oil prices and investor confidence that inflation is contained enough that the Federal Reserve won't have to accelerate its rate-hiking campaign.

Investors will be looking for similar signs in this week's news. Reports are due on durable goods orders, new and existing home sales, personal income and spending, and a revision to first-quarter gross domestic product growth.

Here's what was moving near the close.
On the move

Apple Computer (up $2.15 to $39.70, Research) is in talks with Intel (up $0.12 to $26.47, Research) to use its chips in its Macintosh computer line, according to a Wall Street Journal report Monday. The report did not specify how a potential deal would impact Apple's relationship with its current supplier, IBM (up $0.15 to $76.56, Research).

Apple shares gained 5.8 percent, while Intel and IBM shares were little changed.

Shares of Able Laboratories (down $2.11 to $5.08, Research) plunged 27 percent in very active Nasdaq trade after the generic drugmaker said it had halted its manufacturing operations and recalled its product line due to questionable lab practices.

Last week, the company temporarily halted shipments, said that its chief executive had resigned, and that it was withdrawing its financial forecast.

In other news, Campbell Soup (up $0.43 to $30.77, Research) reported quarterly earnings and revenue early Monday that rose from a year ago and edged past analysts' estimates. Shares rose 1.6 percent.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by more than two to one on volume of 935 million shares. On the Nasdaq, advancers beat decliners three to two as 1.3 billion shares changed hands.

U.S. light crude for July delivery rose 50 cents to $49.15 a barrel on the New York Mercantile Exchange.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 4.07 percent from 4.12 percent late Friday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar fell versus the yen and euro, after rallying for most of last week.

COMEX gold lost 80 cents to $416.90 an ounce, tumbling with other dollar-traded commodities.

In global trade, Asian-Pacific stocks ended mixed and European shares ended higher.